14 July 2025
On 27 June 2025, Executive Council approved amendments to the Social Security Regulations 2011. These changes aim to clarify and address issues identified with respect to Income Related Benefits (IRB) and the Basic Island Pension (BIP), with the aim of ensuring a fairer and more responsive system for beneficiaries.
The agreed amendments cover several crucial areas:
- Income Related Benefits (IRB) while Overseas: For Category 3 claimants only, IRB will now be paid for up to 30 days when overseas, after which payments will cease.
- Medical Referral Stipend Disregarded: The stipend received by individuals from the Health & Social Care Portfolio during overseas medical referrals will not immediately affect their IRB. However, their IRB will be reduced to 30% of their usual amount after 42 days.
- Hospitalisation on Island (IRB): When hospitalised on St Helena, IRB will be reduced to 30% of the individual’s entitlement after 42 days.
- Basic Island Pension (BIP) During Hospitalisation: Payments of the Basic Island Pension (BIP) will continue for individuals hospitalised on the island beyond the current 42-day rule.
- IRB and Residential Care: IRB for an individual will be removed after 42 days in formal residential care where all living costs are met by the care provider.
- Young Parents and IRB Entitlement: A parent aged under 19 with a child, who is still in full-time government-provided education, will be treated as an independent family unit entitled to IRB.
- Encouraging Part-Time Work: The current £10 per week disregard under Regulation 8 for earnings whether full, part time or casual, will be increased to £30 per week and is designed to encourage part-time working.
- Disregard of Homes for IRB Clients: If IRB clients temporarily live with a relative, friend, or in respite care due to health or social reasons (not by choice), their main home will not be counted when calculating their family’s income for IRB for up to six months.
- Disregard of Other Immoveable Property for IRB Applicants: If an IRB applicant has other immovable property (not their primary residence) that cannot be immediately liquidated or derive an income from (rented), the property can be disregarded for up to six months, during which time the applicant can take appropriate action to dispose of the asset or make alternative arrangements. If the property is still held after six months, IRB payments will cease.
- Disregard of Compensation payments: A compensation payment received by an IRB client in relation to a personal injury will be disregarded, provided the compensation is held separately from all other assets.
Basic Island Pension Increase
Furthermore, as part of the 2025/26 Budget process, Ministers agreed and announced an increase in the basic rate of the Basic Island Pension (BIP) from £80.60 to £85.00 per week. This increase reinforces the Government’s commitment to supporting the island’s pensioners. All those in receipt of the BIP will receive an individual letter from the Benefits Office setting out their new weekly amount.
These changes came into effect from 1 July 2025. If anyone has questions relating to the implementation of these change they are encouraged to contact the Benefits Office on 22605 for further information.
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