Following recent press coverage regarding Income Support, the Minister for Social Security wishes to correct a misunderstanding which has arisen in respect of the total cost of Income Support.
The total cost of Income Support in 2008, the first year of operation was £76.2 million compared to the total cost in 2011 of £90.1 million. This is a rise of 18% over 4 years. These figures are available in the audited published States’ accounts.
When Income Support was introduced, some households were eligible for a lower rate of benefit under the new system, compared to their previous entitlement. Separate provision was made for these households and they received “protected” payments which are being phased out over a number of years. The cost of this
protection is included in the total cost of Income Support. The cost has reduced from £9.3 million in 2008 to £2.0 million in 2011.
Excluding the cost of protected payments, the net cost of Income Support in 2008 was £66.9 million and this had risen to £88.1 million by 2011. This is a rise of 32% over 4 years.
In 2007, the last full year before the introduction of Income Support, the total costs of the benefits replaced by Income Support and administered by Housing, Social Security, the twelve Parishes and Education Sport and Culture amounted to approximately £63 million.