Income support officers currently “act outside of the law” to ensure that families don’t lose out on benefits because a young person in the household is working – but the legislation could soon be updated to match what is already being done in practice.
The Social Security Minister has lodged a proposition that aims to align income support legislation with current and future practices, improve the efficiency of benefit administration, and enhance data collection.
Deputy Lyndsay Feltham explained: “The proposed amendments are designed to fully protect existing claimants and maintain claim rates at their current level.
“There will be no impact on the amount of income support payable to income support households.”
The proposed changes will introduce a clear definition of “family unit” to support more consistent data collection and efficient claim processing.
If approved, the law would also be updated to allow housing components to be paid for eligible family members sharing a home, even if they’re not named on the lease or licence, aligning with current practice.
The proposition also includes new rules to ensure that students who work while in full-time education do not negatively affect their household’s income support claim and are always financially better off.
There will be no impact on the amount of income support payable to income support households
Social Security Minister Lyndsay Feltham
The law will be amended to formalise current flexible practices that prevent working young people from reducing their household’s income support.
The proposition explained: “The Minister is committed to incentivising young people to work by ensuring income support households are always better off during any period in which a young person is working.
“To achieve this, determining officers currently act outside of the law, but in the best interests of young people by keeping them in or removing them from the parent household, whichever results in less loss of benefit.”
If approved, the law would also be updated to ensure housing support calculations are fair and reflect actual rental situations when multiple households share a dwelling, and a legal loophole would be closed to ensure single parents continue to receive the appropriate component – even when their child has a separate income support claim due to care needs.
The full proposition can be read online.