The Department of Social Care will seek Tynwald approval for the uprating of Social Security pensions and benefits with effect from April 2011 at the July 2011 sitting of Tynwald.
Overall, Social Security spending is expected to rise by ?8.8 million or 3.7% in the financial year to 31 March 2012 compared with the previous year. This is due to both the uprating of benefits to take account of inflation and also an increase in the number of beneficiaries, particularly pensioners. Total pensions and benefits expenditure is expected to be ?246.3 million in 2011/12, which is 30% of all Government spending. Over ?141 million will be spent on state pensions and the pension supplement, while a further ?19.2 million has been allocated for Child Benefit and ?23.3 million will be paid in benefits for the sick and disabled.
Minister for Social Care Hon Martyn Quayle MHK said: “We are all aware that Government is seeking to address the significant shortfall in income over expenditure. At the same time, we must ensure that the most vulnerable in our community are adequately protected. Therefore I am pleased my Department has been able to increase almost all Social Security pensions and benefits, many of which remain higher than their UK equivalents.”
The basic state pension rose by 4.6% or ?4.50 a week – from ?97.65 to ?102.15 – and the weekly rate of the pension supplement for a qualifying individual receiving a full basic State pension increased from ?47.65 to ?49.85. So, a pensioner with a full state pension who qualifies for the pension supplement will see an overall increase of 4.60% or ?6.70 a week. These changes will affect over 18,000 pensioners.
Other pensions and benefits which are covered under reciprocal arrangements with the United Kingdom have generally increased by 3.1%, in line with UK inflation. This will affect over 5,000 individuals and families including the disabled and carers.
The Island’s income related benefits, such as Income Support and Family Income Supplement, generally increased by 4.1%. This is of direct benefit to around 5,000 individuals and families, including some 1,600 pensioners.
Commenting on the uprating measures, Mr Alan Crowe MLC, Member of the Department of Social Care with special responsibility for Social Security, said “The social security budget continues to represent a huge commitment for Government. This year’s uprating maintains the policy of providing help to those who need it most.”
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Thursday 30th, June 2011 03:40pm.