Author Topic: Income Support, is it fair on the Tax Payer?  (Read 28919 times)

Offline Jerry Gosselin

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Re: Single Parent Component to recommence from 1st June 2018 (if States agrees)
« Reply #120 on: February 07, 2018, 08:49:33 AM »
The proposition to reinstate the single parent component of Income Support was lodged yesterday and is set to be debated on 20th March:

Extract as follows:

This additional component will be available to single parents who currently continue to receive a reduced amount of the previous component, as they were receiving a single parent component at the end of October 2015. There are approximately 750 claimants in this category.

It will also be available to other claimants who have established a single parent claim since 1st November 2015. There are approximately 450 claimants in this category.

Both groups will be entitled to the same additional component of £40.39 per week.

With the agreement of the Health and Social Security Scrutiny Panel, and subject to the approval of the States Assembly, claimants will be eligible for this additional amount from 1st June 2018.

So the larger group of 750 claimants who were already receiving the component before 1st November 2015 are now receiving just £10.15 per week above the adult component rate, which is a loss of £30.24 per week compared to what they were entitled to before 1st November 2015. Yet from 1st June, they will be re-entitled to that lost £30.24 per week again.

For the other 450 claimants who only established their single parent claims after 1st November 2015, they have never received any part of the additional component at all and will therefore be £40.39 per week better off from 1st June.

The additional £40.39 per week is worth about £2k per year according to my rough calculation. In the hypothetical case of a single parent who first made a claim in, say, mid-November 2015 (and was therefore never entitled to any part of the extra £40.39 per week) that person may have lost in the region of £5k worth of benefits in the 2.5 years that it took the States to overturn its original 2015 decision. That is a huge sum of money for such a low income household which could have made the lives of the parent and the child/children so much more bearable during that time, but they won't get a penny of that money refunded to them as a back payment in June.

So the States have finally corrected their mistake but I really don't feel we should be applauding them too much, if at all.  >:(

« Last Edit: February 07, 2018, 08:52:47 AM by Jerry Gosselin »