State pension not designed as wage, Jersey minister

Gemma Daubeney
BBC News, Jersey
BBC Lyndsay Feltham is a woman with blonde hair. She is looking at the camera. She is wearing a pink, cream and yellow scarf over a pink coat. She is standing in front of a street with iron railings.BBC
The Social Security Minister Deputy Lyndsay Feltham said she wanted more people to understand what the state pension was designed to do

The state pension was "never designed" to be a replacement wage for Jersey's pensioners to live on, the social security minister has said.

It comes after Social Security Minister Deputy Lyndsay Feltham confirmed the state pension would need to rise by 63% in order to match the island's full-time minimum wage.

Feltham was responding to a question from backbencher Deputy Max Andrews who said "many pensioners are struggling, especially the lower income ones".

Feltham said a state pension that acted as a replacement wage would require "a lot" of redesign and would be "very difficult" to afford because of the island's aging population.

She said it would be nice to "have a magic wand and make the old age pension higher" but warned that would put more pressure on working age people.

"From those people that are currently employed and knowing the pressures that we've got on the island, that is something that I cannot currently do," she said.

Feltham said she wanted to make sure there was a better understanding of what the state pension was for.

She said the pension - which is not means-tested - is propped up by the community cost bonus, cold weather bonus and income support, which is "the safety net for all islanders".

She added she was looking at plans to increase the number of pensioners who can access pension plus - a government scheme to help those on low-incomes access dental, foot and eye care.

She said she was also considering expanding the health access scheme so more pensioners can have the cost of their doctor's appointments subsidised.

Deputy Max Andrews standing outside the States Assembly building, which as light pink walls and large windows. He is wearing a dark blue suit with a white dress shirt and a blue-and-white striped tie. He has short brown hair, neatly styled, and is looking slightly to the side with a composed expression.
Deputy Max Andrews said the government "has to support pensioners"

Andrews acknowledged a state pension that equals a full-time minimum wage would be "unrealistic".

He said the government needed to make sure the island had stronger tax revenues and social security contributions to fund increased social expenditure.

Andrews also said the government should reduce spending, particularly in "non-frontline" services.

He added: "The government has to support pensioners, especially during the winter months because that is the time when people are seeing their expenses increase."

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