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STATES MEMBERS' INCOME SUPPORT AND EXPENSE ALLOWANCE: INDEXATION (P.235/98) - COMMENTS
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Presented to the States on 24th November 1998 by the Finance and Economics Committee
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STATES OF JERSEY
STATES GREFFE
175 1 9 9 8 P . 2 3 9
Price code: A
Comments
The Finance and Economics Committee has taken the view that it is for the States to decide on matters relating to Members' Income Support and expenses allowance. The Committee feels that members should receive details of the estimated cost savings as follows:
The estimated level of income support for one member based on predictions for the two different indices are:
Year rate payable | Estimated increase in index for | Retail Price s Index % Amount Increase £ | Jersey Earnings Index % Amount Increase £ | ||
1998 1999 2000 | 1997 1998 1999 | 4.4 4.0 | 24,000 25,056 26,059 | 6.4 6.0 | 24,000 25,536 27,068 |
This shows that the annual income support payable in the year 2000 will be £1,009 lower if it is based on the Retail Price s Index as opposed to the Jersey Earning Index, assuming the predictions above.
Based on the assumption that 21 members (the current number of claimants) will claim the allowance, this would indicate the following costs.
Year of expenditure | Estimated increase in index for | Retail Price s Index total cost based on 21 members £ | Jersey Earnings Index total cost based on 21 members £ | Total cost difference £ |
1998 1999 2000 | 1997 1998 1999 | 504,000 526,176 547,239 1,577,415 | 504,000 536,256 568,428 1,608,684 | - 10,080 21,189 31,269 |
The total saving would be in the region of £31,200 for 1999 and 2000.
On the basis of current trends, the cost differential is likely to accumulate by approximately £10,000 per annum.