30 October 2012
The Social Security Minister has clarified the total costs of Income Support, following misunderstandings revealed through press coverage of the issue.
The total cost of Income Support in 2008, the first year of operation, was £76.2 million compared to the total cost in 2011 of £90.1 million. This is a rise of 18% over four years. These figures are available in the audited published States’ accounts.
When Income Support was introduced, some households were eligible for a lower rate of benefit under the new system, compared to their previous entitlement. Separate provision was made for these households and they received "protected" payments. These are being phased out over a number of years.
The cost of "protected payments" is included in the total cost of Income Support. That cost has fallen from £9.3 million in 2008 to £2 million in 2011.
Excluding the cost of protected payments, the net cost of Income Support in 2008 was £66.9 million. This rose to £88.1 million by 2011. This is a rise of 32% over four years.
In 2007, the last full year before the introduction of Income Support, the total costs of the benefits replaced by Income Support and administered by Housing, Social Security, the twelve Parishes and Education Sport and Culture amounted to approximately £63 million.
gov.je