Proposed Budget (Government Plan) 2026-2029 (P.70/2025): fifth amendment (P.70/2025 Amd.(5)) – amendment. Upper Earnings Limit
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STATES OF JERSEY
PROPOSED BUDGET (GOVERNMENT PLAN) 2026-2029 (P.70/2025): FIFTH AMENDMENT (P.70/2025 AMD.(5)) – AMENDMENT
Lodged au Greffe on 26th November 2025 by Deputy T.A. Coles of St. Helier South Earliest date for debate: 8th December 2025
STATES GREFFE
2025 P.70 Amd.(5) Amd.
PROPOSED BUDGET (GOVERNMENT PLAN) 2026-2029 (P.70/2025): FIFTH AMENDMENT (P.70/2025 AMD.(5)) – AMENDMENT ____________
1 PAGE 2, PARAGRAPH 1 –
After the words "as defined within" insert the words "Schedules 1A and 1B of"; and
After the words "should be removed" insert the words "from 1st January 2027".
2 PAGE 2, PARAGRAPH 2 –
After the words "as defined within" insert the words "Schedule 1C of"; and
After the words "should be removed" insert the words "from 1st January 2027"
DEPUTY T.A. COLES OF ST. HELIER SOUTH
Note: After this amendment, the amendment would read as follows – 1 PAGE 3, PARAGRAPH (b)(xi) –
After paragraph b(xi) insert new paragraph b(xii) –
"b(xii) to agree that the upper earnings limit, as defined within Schedules 1A and
1B of the Social Security (Jersey) Law 1974, should be removed from 1st January 2027, abolishing the upper earnings cap on Social Security Contributions and increasing the closing balance of the relevant funds by £6,000,000."
and redesignate the existing paragraphs accordingly.
2 PAGE 3, PARAGRAPH (b)(xi) –
After paragraph b(xi) insert new paragraph b(xii) –
"b(xii) to agree that the upper earnings limit, as defined within Schedule 1C of
the Social Security (Jersey) Law 1974, should be removed from 1st January 2027, abolishing the upper earnings cap on Long Term Care Contributions and increasing the closing balance of the relevant funds by £11,000,000."
and redesignate the existing paragraphs accordingly.
Note: After this amendment, the proposition would read as follows –
THE STATES are asked to decide whether they are of opinion
- In accordance with Article 16 of the Public Finances (Jersey) Law 2019 (the Law) to approve an amendment to the Government Plan 2025 – 2028 (entitled "Budget 2025 – 2028") to a reduction in the 2025 head of expenditure "Grants to States Funds" as included in Table 5(i) Revenue Heads of Expenditure of that Government Plan from £119,821,000 to £69,821,000.
- To receive the Government Plan 2026 – 2029 (entitled "Budget 2026-2029") specified in Article 9(1) of the Law and specifically –
- to approve the estimate of total States income to be paid into the Consolidated Fund in 2026 as set out in Appendix 2 – Summary Table 1 to the Report, which is inclusive of the proposed taxation and impôts duties changes outlined in the Government Plan, in line with Article 9(2)(a) of the Law.
- to refer to their Act dated 24th June 2003 in which they approved that no new user pays' charges be introduced without any such charge receiving prior in principle approval by the States Assembly and accordingly to approve the introduction of two new charges, to be levied by Health and Care Jersey to promote appropriate use of the Emergency Department and for repeated non-attendance of outpatient appointments, detailed in the section entitled "Departmental Income Sources" as set out in the Appendix to the accompanying Report.
- to approve the proposed Changes to Approval for financing/borrowing for 2026, as shown in Appendix 2 – Summary Table 2 to the Report, which may be obtained by the Minister for Treasury and Resources, as and when required, in line with Article 9 (2)(c) of the Law, of up to those revised approval amounts.
- to approve the transfers from one States fund to another for 2026 of up to and including the amounts set in Appendix 2 – Summary Table 3 in line with Article 9(2)(b) of the Law.
- to approve a transfer from the Consolidated Fund to the Stabilisation Fund in 2026 of up to £50 million, subject to a decision of the Minister for Treasury and Resources based on the availability of funds in the Consolidated Fund as at 31st December 2025 in excess of the estimates provided in this plan, or from budgeted underspends identified before 31st December 2026.
- to approve a transfer from the Consolidated Fund to the Agricultural Loans Fund in 2026 of up to £5 million, subject to a decision of the Minister for Treasury and Resources based on availability of funds in the Consolidated Fund as at 31st December 2025 in excess of estimates provided in this plan, or from budgeted underspends identified before 31st December 2026;
- to approve each major project that is to be started or continued in 2026 and the total cost of each such project and any amendments to the proposed total cost of a major project under a previously approved Government Plan, in line with Article 9(2)(d), (e) and (f) of the Law and as set out in Appendix 2 – Summary Table 4 to the Report.
viii. to approve the proposed amount to be appropriated from the
Consolidated Fund for 2026, for each head of expenditure, being gross expenditure less estimated income (if any), in line with Articles 9(2)(g), 10(1) and 10(2) of the Law, and set out in Appendix 2 – Summary Tables 5(i) and (ii) of the Report.
- to approve the estimated income, being estimated gross income less expenditure, that each States trading operation will pay into its trading fund in 2026 in line with Article 9(2)(h) of the Law and set out in Appendix 2 – Summary Table 6 to the Report.
- to approve the proposed amount to be appropriated from each States trading operation's trading fund for 2026 for each head of expenditure in line with Article 9(2)(i) of the Law and set out in Appendix 2 – Summary Table 7 to the Report.
- to approve the estimated income and expenditure proposals for the Climate Emergency Fund for 2026 as set out in Appendix 2 – Summary Table 8 to the Report.
- to agree that the upper earnings limit, as defined within Schedules 1A and 1B of the Social Security (Jersey) Law 1974, should be removed from 1st January 2027, abolishing the upper earnings cap on Social Security Contributions and increasing the closing balance of the relevant funds by £6,000,000.
xiii. to agree that the upper earnings limit, as defined within Schedule 1C
of the Social Security (Jersey) Law 1974, should be removed from 1st January 2027, abolishing the upper earnings cap on Long Term Care Contributions and increasing the closing balance of the relevant funds by £11,000,000.
xiv. to approve, in accordance with Article 9(1) of the Law, the Government Plan 2026-2029, as set in the Appendix to the accompanying Report.
REPORT
This amendment to my own amendment is to provide clarity on what part of the social security legislation is being considered in each part of the amendment.
It is also to clarify the date that, if adopted, these changes would take effect. Financial and staffing implications
This amendment would have no further financial or staffing implications than already identified in the original amendment.
Children's Rights Impact Assessment
I consider that this proposition (amendment) has no direct or indirect impact on children and that the duty to have due regard to the UN Convention on the Rights of the Child does not arise. Accordingly, a Children's Rights Impact Assessment is not required under the Children (Conventions Rights) (Jersey) Law 2022.