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WRITTEN QUESTION TO THE MINISTER FOR SOCIAL SECURITY BY DEPUTY J.M. MAON OF ST. SAVIOUR
ANSWER TO BE TABLED ON TUESDAY 22nd MARCH 2016
Question
Will the Minister please outline the timetable for proposals to assist the self-employed, to include –
- Green paper stage
- White paper stage
- Scrutiny review period
- Amendments post scrutiny review
- Lodging for debate
- Debate
Answer
The review of the Social Security Fund (SSF), as set out on P.129 of the MTFP report published last year, is currently in the preliminary planning stage. As noted in that report:
This review will consider the level at which the States Grant should be set in future. It will also consider all aspects of the current scheme, including the level of contributions collected and the eligibility for, and the value of, pensions and benefits payable.
The review will consider options for:
increasing the liability for contributions from higher earners,
reviewing the level of the standard earnings limit and the upper earnings limit, increasing the percentage rate for contributions,
reviewing the balance between employer and employee contributions, reviewing the liability of self-employed contributors,
reviewing the method for uprating pensions and benefits,
increasing the state pension age,
reviewing the eligibility for pensions,
reviewing the range of working age benefits available.
The review will be supported by an actuarial review of the SSF as at 31 December 2015. This review will be undertaken by the UK Government Actuary and is likely to be published in the second half of 2016.
During the course of this MTFP, the Social Security Department will also work with the Treasury and Resources Department to promote financial independence in old age, and to encourage a higher proportion of workers to take up occupational pensions. For example, this could be achieved through changes in income tax or benefit rules, as well as the promotion of work-based pension schemes aimed at lower earners.
The Health and Social Security Scrutiny Panel were given initial details of the review at the quarterly hearing held on 3 March 2016. The review will include a specific examination of Class 2 contributions which are paid by self-employed workers. Engagement and consultation will start later this year and, depending on the outcomes, proposals will be reviewed by the Scrutiny Panel and then brought to the Assembly for approval.