Ministerial U-turn on care leaver funding cut

Tuesday 15 December 2020

Ministers have made a U-turn on a decision to cut £100,000 from a support package to young people leaving care.

Announced in February, the “landmark” support line included personal advisors allocated to work with children and young people from the age of 14 up to 25, the option for care leavers to remain with their foster parents until they are at least 21 (and in some cases to 25), as well as funding for “the everyday necessities that any loving parent would normally pay for."

But, when published in October, the Government Plan showed the £250,000 budget allocated for the care leavers’ offer had been reduced to £165,000 – something the CEO of advocacy group Jersey Cares told Express risked “irreparably” breaking the trust and affecting the sense of self-worth of children with experience of care. 

Ahead of the Government Plan debate opening yesterday, the Children and Education Scrutiny Panel therefore made a call for the Government not to reverse that decision.

Pictured: The Government Plan debate started yesterday.

Ministers have now accepted that suggested change to the Government Plan, alongside six other amendments, including extra money for Beresford Street Kitchen, which offers employment opportunities to islanders with disabilities and increased stamp duty on properties worth over £2m. 

They also agreed funding for tree preservation initiatives in 2021 – a move that will draw £300,000 from the Climate Emergency Fund. 

Ministers also gave their approval to reinstating funding for a public service ombudsman (£1m between 2022 and 2024), allocating £159,000 to the Jersey Premium for disadvantaged children, and establishing a poverty commission to investigate hardship on the island, which will see £150,000 given to Statistics Jersey.

The Government also tweaked a bid by Deputy Montfort Tadier for more funding towards the repair and maintenance of Elizabeth Castle which had been unexpectedly pulled, reducing the suggested sum from £2.6m to £750,000. The Deputy accepted the amendment, which was approved by States Members.

@DeputyTadier has accepted his own Amendment as amended by the Council of Ministers: that funding toward the repair and maintenance of Elizabeth Castle in 2021 be increased by £750,000, rather than £2.6 million. See: https://t.co/AOKyzc02Hm https://t.co/gX2FeEXMxf

— States Assembly (@StatesAssembly) December 14, 2020

The States Assembly also approved two amendments seeking to bring tax breaks to working families. The first sought to increase Child Care Tax Relief by £123 and Enhanced Child Care Tax Relief by £320 in 2021, while the second sought to increase Child Tax Allowance by £60 and Additional Child Allowance by £90.

Meanwhile, a bid by Deputy Rob Ward to reduce the cost of renewable diesel so it compares in price to traditional diesel was narrowly defeated. The debate on the matter saw criticism levelled at the Infrastructure Minister, who in turn said it was difficult to develop sustainable transport policy when his funding was being “nibbled”.

This morning, Deputy Mike Higgins’ plan to cut Jersey Police Firearms Range funding by £1m and redirect that money to the Sea Cadets so they can acquire a new headquarters was rejected. 

The States Assembly has voted to REJECT Deputy Rob Ward’s Amendment to the Government Plan. This means that the cost of renewable biodiesel will be not be reduced so that it compares in cost to traditional diesel. Find out more: https://t.co/ySRTx0Uiaw pic.twitter.com/s7gxAGMoa8

— States Assembly (@StatesAssembly) December 14, 2020

Meanwhile, a plan to plug the island’s covid debt through sales of public assets and developing a community bonds programme was taken off the table altogether. This was said to be because Senator Ian Gorst had put forward a similar asset sales plan that had been accepted by Ministers. 

All the amendments that have been approved so far will come into force if States Members approve the overall Government Plan at the end of the week. 

Opening the Government Plan debate yesterday morning, Treasury Minister Deputy Susie Pinel dwelled on the challenges of covid-19 for the public purse, telling her colleagues:  “2020 has been an unprecedented year and one that none of us would wish to repeat.

“It has meant that we’ve had to spend substantial amounts of time and money to respond to the global covid-19 pandemic and keep Islanders safe, while also providing the necessary support and investment for our economy.

“It’s also been crucial that we do everything we can to protect our future finances.”

Pictured: Treasury Minister Deputy Susie Pinel.

She went on to explain that the Government Plan was drawn up in line with independent economic advisors known as the Fiscal Policy Panel, who had advised that “we should not increase taxes or make large cuts to cover the deficit.”

“Instead, the panel recommended running deficits in the short-term to support the economy, along with longer term plans to balance budgets by 2024,” she explained. 

The Treasury Minister later concluded her speech: “I and my fellow Ministers have had to make difficult decisions on behalf of the Island. 

“While responding to the pandemic has left us with a substantial and rising debt, I have put in place a plan that rebalances our finances and, at the same time, maintains our reserves, so that Jersey is ready and able to respond to any further economic challenges. 

“There are still may uncertainties in the months ahead, but the arrival on the Island of the first batch of the covid-19 vaccine gives us hope that our current situation can and will improve as we move through 2021.”

The debate continues this morning.

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