Government Plan 2020–2023 (P.71/2019): ninth amendment (P.71/2019 Amd.(9)) – third amendment [P.71/2019 Amd.(9)Amd.(3)]

STATES OF JERSEY

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GOVERNMENT PLAN 2020–2023 (P.71/2019): NINTH AMENDMENT (P.71/2019 Amd.(9)) –

THIRD AMENDMENT

Lodged au Greffe on 19th November 2019 by Deputy C.S. Alves of St. Helier

STATES GREFFE

2019  P.71 Amd.(9)Amd.(3)

GOVERNMENT PLAN 2020–2023 (P.71/2019): NINTH AMENDMENT (P.71/2019 Amd.(9)) – THIRD AMENDMENT

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1  PAGE 2, NEW PARAGRAPH 1 –

Insert a new paragraph 1 into the ninth amendment as follows, and renumber the remaining paragraphs accordingly –

"1  PAGE 2, PARAGRAPH (c) –

After the words "of the Report" insert the words ", except that, in Summary Table 3(i) the Head of Expenditure for Customer and Local Services should be increased by £1,450,000, and the Head of Expenditure for Treasury and Exchequer should be decreased by £1,450,000, to reflect a 100% disregard for income from Parental Allowance for households in receipt of an Income Support and a reduction in the Grant to the Social Security fund;".".

2  PAGE 2, PARAGRAPH 2 (renumbered as paragraph 3 of the ninth

amendment) –

1. In the inserted sub-paragraph (1), for the word "Maternity" substitute the words "the proposed Parental"; and for the word "January" substitute the word "July".
2. In the inserted sub-paragraph (2), after the words "amount payable" insert the words "to each parent from July 2020"; for the word "Maternity" substitute the word "Parental"; and for the sum "£3,000,000" substitute the sum "£1,500,000".
3. In the inserted sub-paragraph (3), after the words "Support award" insert the words "from July 2020"; and for the sum "£2.9 million" substitute the sum "£1.45 million".

DEPUTY C.S. ALVES OF ST. HELIER

Note:  After this amendment, the ninth amendment would read as follows –

1  PAGE 2, PARAGRAPH (c) –

After the words "of the Report" insert the words ", except that, in Summary Table 3(i) the Head of Expenditure for Customer and Local Services should be increased by £1,450,000, and the Head of Expenditure for Treasury and Exchequer should be decreased by £1,450,000, to reflect a 100% disregard for income from Parental Allowance for households in receipt of an Income Support and a reduction in the Grant to the Social Security fund;".

2  PAGE 2, PARAGRAPH (h)(i) –

After the words "contribution liability" insert the words ", except that the Upper Earnings Limit shall be increased from the proposed £250,000 to £500,000, and the percentage rate  levied  on Class 1 employers  and Class 2 contributors on earnings between the Standard Earnings Limit and the Upper Earnings Limit shall be increased from the proposed 2.5% to 4%, increasing the estimated closing balance on the Social Security Fund shown in Summary Table 8(i) by £8,700,000".

3  PAGE 3, PARAGRAPH (h) –

At the end of paragraph (h), insert the words –

"to request the Minister for Social Security to –

1. bring forward proposals to the States to extend the period covered  by  the  proposed  Parental Allowance  under  the Social Security (Jersey) Law 1974 from 18 to 26 weeks, with  effect  from  July 2020,  at  an  estimated  cost  of £3,000,000 in 2020;
2. raise the maximum amount payable to each parent from July2020 as  Parental Allowance  under  the  Social  Security (Jersey)  Law  1974  from  £222  to  £280  weekly,  at  an estimated cost of £1,500,000 in 2020; and
3. amend the Income Support (General Provisions) (Jersey) Order 2008 in order to introduce a 100% disregard for income from Parental Benefit for households in receipt of an Income Support award from July 2020, at an estimated cost of £1.45 million in 2020; and".

Page - 3

P.71/2019 Amd.(9)Amd.(3)

REPORT

This amendment will delay the starting date for the increases in parental leave support proposed  in  the  ninth  amendment to  P.71/2019,  to  enable  the  Social  Security Department to prepare the necessary legislative and systematic changes to implement these proposals.

Financial and manpower implications

As the changes proposed will be delayed to halfway through the year, the estimated costs of providing extra parental leave support will be half of that initially proposed.