2.6% rise in old age pensions proposed in Guernsey

Elderly person playing a board game
If approved, the full rate of old age pension will increase in 2021 by £5.79 per week to £228.37 per week. Credit: ITV News

Old age pensions in Guernsey could increase from January 2021.

The island's Committee for Employment & Social Security wants to introduce a 2.6% rise in the rates of States pensions and other benefits funded through the Guernsey Insurance Fund.

It would mean the full rate of the old age pension would rise to £228.37 - an increase of £5.79.

The rise would be in line with the States' current uprating policy.

In 2020, the Committee said that current contribution rates were not sustainable in the long term but now says that as the impact of Covid-19 is not yet fully understood, it will not look to change the rates.

An independent five-year review is due to take place this year.

The proposals have been put forward earlier than normal ahead of a potential general election, which could take place as early as October.