Letter 8

Press Release

 

Attac

 

and the

 

tax justice network

 

On the 21st June 2006 Attac and the Tax Justice Network submitted a report on the Income Support Scheme to the Social Affairs Scrutiny Panel.

Our findings were that some Jersey residents are suffering relative poverty and that there seems to be indicators that this may increase with the introduction of the said scheme. Especially in the light of the frozen income tax allowances of the last several years, the future introduction of 20% means 20% for middle earners and the introduction of the regressive goods and services tax.

We have indicated in our report that if the Employment and Social Security Department (ESS) continue to look at the social protection policies of the United Kingdom and the United States of America relative poverty in Jersey may well rise. We have noted that the Nordic model of social protection should be considered as an alternate means.  

We recommend that social security contributions should be increased for employees and especially employers as a means of meeting the perceived new demands of the Income Support Scheme, especially as a report commissioned by ESS have noted the “small amounts provided through employee contributions and, especially, from employers.”

Statistical Overview:

  • Jersey has a gross national income (GNI) in excess of £3 billion, and has the second highest GNI per capita in the world after Luxembourg.
  • As a percentage of GNI Jersey spends less than 2.7% on social protection at ESS.

Total social protection expenditure of GDP by country:

  • Jersey 12.3%
  • Luxembourg 21.2%
  • Denmark 29.5%
  • EU 15 average is 27.5%

 

Relative poverty:

 

  • 45% of single pensioners live in relative poverty in Jersey.
  • 64% of single parents and their children live in relative poverty in Jersey.
  • 25% of Jersey homes need support from the State to make ends meet.

 

The ESS department state that:

  • A single person can live on £113 per week after housing costs.
  • A single parent with two children under sixteen can live on £203 per week after housing costs.

Contact:

Chris Steel

Treasurer Attac Jersey

Attac / Tax Justice Network

Rosedene

Maufant

St Saviour

JE2 7GT

 

Tel 852076

Mob 07797767168

E-mail rebelrouserjsy@jerseymail.co.uk