Christmas bonus back for some pensioners

Thursday 25 August 2016

Christmas has come early to some of the Island's pensioners with news that they'll be getting a bonus again in early December thanks to our economy performing better than expected last year.

Social Security Minister Susie Pinel has done a U-turn and announced she's set aside an extra £1M and will be handing out £84.87 to the over 65's.

Plans to scrap the bonus were announced last October but Deputy Pinel has now allocated the cash in the Mid Term Financial Plan Addition to help lower income pensioners with their health and general living costs.

Deputy Pinel said: “The Social Security Fund was set up in the 1950s to make sure that everyone could enjoy a pension in old age.  Since then, we have built up a good level of reserves in the Fund but the number of pensioners will rise quickly over the next few years and we will soon reach the point where the cost of pensions and benefits paid out each year is more than the contributions collected.   

“I am very conscious that we now need to take steps to make sure that the Fund will still be supporting pensioners into the 2050s.”

Pensioners, adults and children who have a significant disability and full-time informal carers will all be eligible for the Christmas bonus.

Pensioners who don't qualify for Income Support but have limited income and savings will also qualify if they are 65 or over, get a Jersey Old-Age Pension or hold 'entitled' status, are ordinarily a resident in Jersey, are not liable to pay Income Tax and have household savings of under £30,000 (excluding the value of the family home and normal household possessions).

Any pensioner who is a member of the current 65+ health scheme will get the Christmas Bonus this year but will need to apply for it next year.

Deputy Pinel estimates that over 5,100 people will be getting the bonus by 2019 at a cost of £436,000 per year.

An extra £200,000 a year was allocated into the MTFP last year to re-launch the 65+ Health Scheme in January next year to help pensioners with the cost of regular check-ups and treatment to keep their teeth, eyes and feet healthy. Changes are being made so that pensioners will no longer have to pay the full cost up front at the dentist, optician or chiropodist and claim later.

Everyone on the current scheme will be transferred to the new scheme later this year.  

A total of £364,000 has also been set aside to fund the Food Costs Bonus scheme for another three years, providing a cash payout of £226.95 to households with incomes above the level to qualify for Income Support but below that to have an Income Tax liability.

A major review of the Social Security scheme is now underway and the public will be asked what they think of it later this year.