Debate set for reinstatement of grant for pensions

A politician has called for more money to be put into the pot which helps pay for pensions after the sum was cut.

The States Grant, which is paid into the Social Security Fund, was reduced as part of last year's budget in Jersey so more money was available for day-to-day spending.

But deputy Max Andrews fears inflation could rise if the government continued spending at the current rate and wants departments to make savings so the full grant can be reinstated from 2028 and reflected in budgets from 2027 to 2030.

The government previously said the temporary adjustment for 2026-29 was due to the "pressing need" to invest elsewhere. Andrews' proposition is due to be debated on 8 September.

The Social Security Fund is a reserve which exists to provide pensions and other state benefits to islanders.

It is financed through contributions from employers, individuals and a government grant.

In his proposition, Andrews said the recent ministerial decision to transfer £114,259,000 from the reserve to the Social Security Fund to compensate for reductions in the States Grant for 2025 and 2026 "sets a dangerous precedent".

He said to "restore order to public finances", the States Assembly must work towards "sustaining current account surpluses".

He added: "Future current account surpluses should be transferred to the reserve funds to complement investment returns and increase the Reserve Fund value over the long term."

As part of its budget, the government said it would lower the States Grant for the next few years to help invest in other services including health and children.

"This avoids the need to raise new taxation or make substantial expenditure savings in the long term," it said.

Follow BBC Jersey on X and Facebook. Send your story ideas to channel.islands@bbc.co.uk.