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Contributory Benefits and Contribution Rates for 2022

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Committee for Employment & Social Security - P.2021/108

The States are asked to decide:

Whether, after consideration of the Policy Letter entitled 'Contributory Benefits and Contribution Rates for 2022', dated 13th September 2021, they are of the opinion:

1. To increase the percentage contribution rate for employers and employees into the Guernsey Insurance Fund in increments of 0.1% each per year over ten years, and for self-employed persons, and non-employed persons under pension age in increments of 0.2% per year over ten years, with effect from 1st January 2022, as set out in paragraph 3.11 of that Policy Letter.

2. To increase the percentage contribution rate for employees, self-employed persons, and non-employed persons under and over pension age, into the Long-term Care Insurance Fund in increments of 0.1% per year over four years, with effect from 1st January 2022, as set out in paragraph 3.18 of that Policy Letter.

3. If Propositions 1 and 2 are approved, to direct the Committee forEmployment & Social Security to:

     a) review, in consultation with the Policy & Resources Committee, its ten year plan for increasing contributions each year, and

     b) report to the States each year, in its annual Policy Letter on contributory benefits and contribution rates, on whether to pursue or to adjust the plan, particularly in light of the resolutions following the debate on the Tax Review, the economic circumstances of the Island and other relevant factors at the time.

4. To set the upper weekly earnings limit and the upper monthly earnings limit for employed persons and employers at £3,027.00 and £13,117.00 respectively, from 1st January 2022.

5.  To set the lower weekly earnings limit and the lower monthly earnings limit for employed persons and employers at £152.00 and £658.67 respectively, from 1st January 2022.

6.  To set the upper and lower annual earnings limits for self-employed persons at £157,404.00 and £7,904.00 respectively, from 1st January 2022.

7.  To set the upper and lower annual income limits for non-employed persons at £157,404.00 and £19,760.00 respectively, from 1st January 2022.

8.  To set the allowance for non-employed persons at £8,904.00 per year, from 1st January 2022, in line with the uprating policy for contribution rates and to agree that section 8(4) of the Social Insurance (Guernsey) Law, 1978, is amended to allow for the same.

9. If Proposition 8 is approved, to set the voluntary contribution for non-employed persons at £22.34 per week, from 1st January 2022, in line with the minimum weekly amount payable by a non-employed person under pension age.

10. To set the overseas voluntary contribution at £103.45 per week for non-employed people and £114.37 per week for self-employed people, from 1st January 2022.

11. To set the standard rates of contributory social insurance benefits as set out in Table 10 of that Policy Letter, from 3rd January 2022.

12. To set the contribution (co-payment) required to be made by the claimant of care benefit, under the Long-term care Insurance Scheme, at £256.83 per week, from 3rd January 2022, and at £271.67 per week, from 4th July 2022.

13. To set the maximum weekly long-term care benefit at the rates set out below, from 3rd January 2022:

     a) £532.98 per week residential care benefit for persons resident in a residential home;

     b) £696.64 per week elderly mentally infirm (EMI) benefit for qualifying persons in a residential home; and

     c) £961.59 per week nursing care benefit for persons resident in a nursing home or the Guernsey Cheshire Home.

14. To set the maximum weekly respite care benefit:

     a) at the rates set out below, from 3rd January 2022:

         i)  £789.81 per week for persons receiving respite care in a residential home;

         ii)  £953.47 per week for the elderly mentally infirm (EMI) rate for persons receiving respite care in a residential home; and

         iii) £1,218.42 per week for persons receiving respite care in a nursing home or the Guernsey Cheshire Home.

     b) at the rates set out below from 4th July 2022:

          i) £804.65 per week for persons receiving respite care in a residential home;

          ii) £968.31 per week for the elderly mentally infirm (EMI) rate for persons receiving respite care in a residential home; and

          iii) £1,233.26 per week for persons receiving respite care in a nursing home or the Guernsey Cheshire Home.

15. To approve, in principle, the policy options set out in paragraphs 6.21 to 6.39 of this Policy Letter in respect of changing the residency conditions to be satisfied to qualify for long-term care benefit, introducing a sliding scale of long-term care benefit entitlement based on length of residency in aggregate in Guernsey, Alderney, Herm or Jethou, and taking into account the capital value of a person's home in the income support means test if the person is living in a residential or nursing home and the property is not occupied by the person's spouse, partner or dependent relative(s).

16. If Proposition 15 is approved, to direct the Committee for Employment & Social Security, in consultation with the Policy & Resources Committee, to return to the States with detailed policy proposals in respect of the policy outlined in paragraphs 6.21 to 6.39 of this Policy Letter at the earliest opportunity, but no later than October 2022. 

17. To direct the preparation of such legislation as may be necessary to give effect to the above decisions.

 

 

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P 2021 108 - Contributory Benefits and Contribution Rates for 2022

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