Benefits system ‘out of control’

by GD Wed 16 Mar 2011, 6:46 pm

THE cost of the new UK-style benefits system has spiralled out of control and Jersey can no longer afford it, however unpopular that might be, the States spending watchdog says today.
According to official figures from the Treasury, Social Security spent £32 million more than it had budgeted for in 2005 to be spent between 2005 and 2010.
The Island moved from a parochial welfare system to a central government-controlled income support regime, based on an English model, in January 2008.
In a damning report published this morning, which warns that urgent action is needed to reform the Island’s government to rein in rampant spending, the Public Accounts Committee says that the scrapping of the parish welfare system has not resulted in anticipated cost savings. (from JEP)