CLAIMS that the government is “plundering” the Social Security Fund have been vehemently rejected by the Social Security Minister, who highlighted the importance of “intergenerational fairness” and accusing critics of “scaremongering”.

The 2026 Budget, which ministers have put forward for debate in the States Assembly next month, includes an annual reduction of around £50 million to the grant over the next four years, with the money being used to support the government’s capital programme and living wage transition plans.

Deputy Sir Philip Bailhache slammed the government for “plundering reserves” as a way of coping with an “inability to control expenditure” at the recent launch of his rebranded political party Advance Jersey.

The backbencher has also lodged an amendment proposing to halve the reduction to the grant and for the outstanding amount to be covered through reductions in spending or, if necessary, taken from the Strategic Reserve, a long-term fund established in the 1980s to protect the economy against downturns.

It comes after the Fiscal Policy Panel, which provides the Treasury Minister with independent advice, outlined reservations about reducing the grant to the Social Security Fund, which is financed through contributions from employees and employers and used to provide benefits like short-term incapacity allowance, carer’s allowance, and old age pensions.

The panel’s report stated that a comprehensive actuarial assessment of future pension liabilities should be carried out before the grant to the fund was cut, saying that making such a reduction ahead of the 2025 review being published was “not prudent”.

Speaking to Bailiwick Podcasts, Social Security Minister Lyndsay Feltham said that one of the “key drivers” behind reducing the grant for a four-year period was to promote “intergenerational fairness”.

“I think it’s important to remember that the Social Security Fund doesn’t just provide provision for people in their old age via the old age pension,” she explained.

“It also provides for working age benefits such as the parental allowance, short term incapacity allowance and the long term incapacity allowance, and also the the home carers allowance as well.

“It’s there as a provision for when people aren’t working for whatever reason – and it’s important that we think about intergenerational fairness when we make decisions.”

Deputy Feltham has described some of the comments made about the proposals to reduce the fund is “scaremongering” by suggesting to the older generation that “their pension pot is being plundered or stolen from”.

She added: “I want to make it absolutely clear – and I think the information and advice that we’ve had from actuaries as well as the Treasury [Department] makes it quite clear – that today’s generation of pensioners have nothing to fear from these changes.”

The Social Security Minister added that it was also important to consider the impact on the younger generation.

“As we make decisions today, we need to be thinking about the future,” said Deputy Feltham.

“We need to be thinking about their future, how we make this Island and Island that they want to stay, work and live in, and then how we secure up the best possible future for them into their pension as well.”

You can listen to the full interview by scanning the QR code or searching for ‘Bailiwick Podcasts’ wherever you get your podcasts.

DON’T MISS…

Islanders are invited to quiz a panel of political and business figures on the key proposals shaping Jersey’s financial future – from tax and spending to pension “plundering”, health charges and much more.

‘Show us the money: Question Time Budget Special’ will be taking place at the Pomme d’Or on 2 December. Doors open at 5pm, for a 5.15pm start.

AIM Unlimited subscribers are entitled to a free ticket as part of their subscription benefits – sign up here for as little as £1. For non-subscribers, general admission is £15 or £10 for students or charities.

Get your ticket and find out more here.

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