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From the beginning of next month, the Jersey old age pension will increase by 2.8% in line with the rising cost of living for pensioners.
The 30,880 pensioners in Jersey - a number which has increased by 2,750 since 2012 - will enjoy higher pension payments from 1 October.
The old age pension is increased annually to take into account the Retail Price Index for pensioners and the average earnings index.
Pensioners who currently receive the full pension rate of £204.19 will get an extra £5.74 per week, bringing the full rate up to £209.93. For couples married before 2001 who receive a pension based on the husband’s contribution record, the maximum rate will rise from £339.01 to £348.53 – an increase of £9.52.
The annual update in the value of the old age pension is calculated using a system that takes into account both inflation in the cost of living (using the Retail Price Index for pensioners) and the average earnings index.
Deputy Susie Pinel, the Minister for Social Security, explained: "For pensioners, this is very good news. The cost of living for pensioners is currently running at 2.8%. Since 2013, pensions always rise by at least the increase in prices, as measured for pensioners.
Pictured: Deputy Susie Pinel described the increase to pension payments as "very good news".
"This year this figure is higher than the increase in average earnings and so the increase in the pension is set at 2.8%. This means that the value of the pension is maintained in real terms.”
Other contributory benefits, including incapacity allowances, maternity benefits and death grants, will be increasing by 2.6% from 1 October 2017 in line with the earnings index.
More information about these changes to benefit rates can be found on the States of Jersey website.
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