1 October 2020
Executive Council has approved a change to rates of Income Related benefits (IRB) and Basic Island Pension (BIP) based on the latest review of the Minimum Income Standard (MIS).
The approved Social Security (Amendment) Regulations, 2020, will come into effect from today, Thursday 1 October 2020. IRB and BIP recipients will see an increase in their benefits from today.
The rate of IRB for a single person household will increase from £71.80 to £73.00 and the rate for the full BIP will increase from £74.30 to £75.50.
Members noted that this might be the last time that the MIS is looked at in this way as the Social Policy Planner is currently reviewing the methodology of how the MIS is calculated and used. This review is expected to be completed by end-November to come into effect from the new Financial Year.
Rebasing the Minimum Income Standard
In October, SHG will rebase the MIS that was originally set in 2013. The MIS is a technical tool which supports SHG in assessing the adequacy of IRB, BIP and the Minimum Wage to provide for a minimum basket of household goods and services that families with children require to meet material needs and to participate in society.
To do this employers on the Island have been asked to nominate a member of staff to take part in four half-day workshops which will identify a shopping basket of food, clothes, goods and services a family needs as a minimum over the course of a year. Other stakeholders have been invited to attend. Developing the basket also takes into account expert evidence for example on good nutrition and adequate household energy use. The basket is focused on needs rather than wants and necessities rather than luxuries. The basket is therefore developed by the public. One group will identify a family basket, an adult basket and a child basket. These will be presented to a second group who will review the contents. Both groups will identify the retail outlets at which goods and services in the shopping basket will be priced. This will establish the MIS.
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1 October 2020