SOCIAL Security’s changes to family allowance are set to go out for consultation. The department wants to create a system that would be targeted more at families in need.
‘We’ve done a draft consultation document setting out how the department envisages it might work,’ said minister Dianne Lewis.
That has been sent to the social policy steering group and the Treasury Department.
‘Providing they are happy, we will put that out to consultation to all States members and the public. We feel as it’s taxpayers’ money, the public should have a chance to air their views.’
The department is looking at an income-related family allowance.
‘We want to use the same pot of money but distribute it to those who are more in need.’
The department aims to be presenting its States report in autumn.
Steering group chairman Peter Roffey said it would be discussed next week.
‘The basic thrust will be everybody is entitled to a family allowance, but it would, to make it revenue-neutral, be clawed back through the tax system from people further up the income bracket.’
It meant those on modest income would benefit, but it would hit higher earners, meaning them eventually choosing not to claim family allowance because they would end up repaying it.
Deputy Roffey was happy to see the family allowance system as a pilot to introducing tax credits.
That system was beginning to find favour with other deputies, despite the problems experienced in the UK.
‘I think it’s been hugely effective in taking people out of poverty but carried with it significant technical difficulties, particularly people getting overpaid and then clawing it back. But I think we can have an approach suitable to Guernsey.’
Article posted on 1st June, 2007 - 12.00am
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