Almost three-quarters of all government spending last year was in social protection, health, and education, according to the latest public spending statistics.

Statistics Jersey today released its public spending statistics report for 2024, which revealed that the old age and sickness and disability groups within the social protection division accounted for almost half (48.3%) of all general government expenditure.

Total government expenditure rose by 5.1% or £86.3m in real terms to £1.79 billion, a slower increase than the 6.3% recorded in 2023.

Pictured: Jersey’s total government expenditure as a percentage of GDP (25%) is lower than most other OECD countries. (Statistics Jersey)

The largest increase in spending were seen in social protection, which increased by £23.3m due to higher costs for pensions and disability benefits.

Maintenance and insurance costs, property projects, increased parish spending, more expenditure on primary and secondary education, and increased expenditure on hospital services were also key factors driving the increase.

The report said: “One of the key factors influencing levels of public expenditure is demographic change.

“Population ageing, in particular, is expected to increase demand for certain services, notably in health and social protection, though other factors such as policy choices, service expectations, and wider economic conditions will also continue to play a role.”

Pictured: Jersey spends a higher percentage on health than any other OECD country. (Statistics Jersey)

When considered as a percentage of total spending, Jersey spends a higher percentage on health than any OECD country.

The report said: “Jersey’s relatively high health spending will likely be influenced by several factors unique to small island jurisdictions.

“With a smaller population, fixed healthcare costs, such as maintaining hospitals, specialised medical services, and infrastructure, can represent a larger share of total spending.

“Additionally, economies of scale are harder to achieve in smaller jurisdictions, which can result in higher per capita costs.

“Furthermore, attracting and retaining healthcare professionals in a smaller jurisdiction, may require comparatively higher wages or additional incentives, contributing to the overall costs of delivery.”

The full report can be found online.

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