Draft Social Security Law (Jersey) Amendment Regulations 202-

REPORT

Summary

As part of the affordability measures set out in the 2027 Budget and the 2026 Common Strategic Policy (CSP), Ministers wish to increase the support provided to parents. The Minister for Social Security plans to double the value of the Parental Grant payable under the Social Security Law as one of these measures.

Background

The 2027 Budget document includes a clear commitment to support Islanders. The report includes the following section:

Supporting Islanders

The Budget includes a targeted package of measures, designed to help households manage cost  of-living  pressures  with  a  particular  support  for  families  and  lower-income households:

• Additional financial support for nursery and childcare, for 2-to-3-year-olds;

• a £200 one-off increase paid in 2027, in the Community Cost Bonus, providing additional support to lower-income households, including pensioners;

• targeted expansion of free school meals provision to secondary schools;

• £250 family support payment for each school aged child in low to middle income households in 2027;

• doubling the Social Security parental grant provided to new parents to £1,800; and

• a freeze in fuel duty for 2027.

These measures are intended to provide practical support with everyday living costs while helping families balance work and caring responsibilities. By reducing some of the costs associated with raising children, they can support participation in the workforce and, over the longer term, contribute to sustaining Jersey's working-age population and economic prosperity.

Alongside this family-focused support, the Budget continues to prioritise assistance for those most affected by rising prices. The Community Cost Bonus provides targeted support to households, including many lower-income pensioners, while the fuel duty freeze helps contain a cost borne by households and businesses across the Island.

Budget 2027 reflects a balanced approach to the opportunities and challenges facing Jersey.  It  provides  targeted  support  for  Islanders,  invests  in  competitiveness  and infrastructure, and begins the work of rebuilding financial resilience. In doing so, it seeks to ensure that Jersey remains a prosperous, affordable and sustainable Island for current and future generations.

While most of these measures can be achieved through allocation of general revenues, the value of the Parental Grant is set within the Social Security Law and these Regulations, if agreed by the States Assembly, will update the law to increase the value of the grant.

Subject to the approval of the Budget, the Minister for Social Security will propose the change to the Social Security law immediately following the conclusion of the Budget debate.

Parental Grant

The Parental Grant is a single (tax free) payment, currently set at 3 times the standard rate of benefit (i.e. 3 times £307.93). It is paid as one lump sum of £923.79. The payment is aimed at helping with the general cost associated with having a new child.

If someone has or adopts twins, triplets or more, a grant is paid for each child.

Entitlement to the Parental Grant is based on either parent's Social Security contributions. If either parent has worked and contributed in Jersey at some stage in their working life, they will likely qualify to receive the payment.

Details of legislation

The value of the Parental Grant is set in Part 2 of Schedule 1 of the Social Security (Jersey) Law 1974. The value is set as a lump sum equal to 3 times the standard rate of benefit.

If agreed, these Regulations will increase the value of the grant from 3 times the standard rate of benefit to 6 times the standard rate of benefit.

This will increase the lump sum amount received from £923.79 to £1,847.58. The value of the Grant increases in line with average earnings on an annual basis.

Timing

The Regulations propose making this change effective from 1st January 2027.

Financial and staffing implications

There are no staffing implications. The additional cost of the grant in 2027 is estimated at approximately £630,000. This cost will be met from the Social Security Fund.

Children's Rights Impact Assessment

A Children's Rights Impact Assessment (CRIA) has been prepared in relation to this proposition and is available to read on the States Assembly website.

Draft Social Security Law (Jersey) Amendment Regulations 202-  Explanatory Note

EXPLANATORY NOTE

These Regulations, if made, will amend the Social Security (Jersey) Law 1974 to increase the amount of the parental grant from 3 times the standard rate of benefit to 6 times the standard rate of benefit. These Regulations come into force on 1 January 2027.

Draft Social Security Law (Jersey) Amendment Regulations 202-  Regulation 1

DRAFT SOCIAL SECURITY LAW (JERSEY) AMENDMENT REGULATIONS 202-

Made  [date to be inserted] Coming into force  [date to be inserted]

THE STATES make these Regulations under Article 50(1)(d) of the Social Security (Jersey) Law 1974 –

1  Social Security (Jersey) Law 1974 amended

These Regulations amend the Social Security (Jersey) Law 1974. 2  Schedule 1 amended

In Schedule 1, Part 2 (amounts of single payment benefits), in item 1 (parental grant), for "A lump sum equal to 3 times the standard rate of benefit" there is substituted "A lump sum equal to 6 times the standard rate of benefit".

3  Title

These Regulations are the Social Security Law (Jersey) Amendment Regulations 202-. 4  Commencement

These Regulations come into force on 1 January 2027.