'Stark warning' over future of Guernsey's pensions and long-term care funding

Deputy Peter Roffey has called for the States to take action on the issue. Credit: ITV Channel TV

Guernsey's Committee for Employment and Social Security warns that funding used to cover pensions, unemployment benefits and long term care in Guernsey could run out within decades.

A new report says that based on current contributions, the funds in the Long-term Care Fund - used to help with the costs of care in nursing and residential homes - could be depleted by 2053.

Meanwhile, the Guernsey Insurance Fund, which supports islanders during old age, unemployment, and with maternity and incapacity benefit, could be exhausted by as early as 2039

The Committee's president Deputy Peter Roffey says despite warnings, previous States had not taken steps to deal with the issue.

Deputy Roffey says his Committee is happy to work alongside the Policy and Resources Committee to find a resolution during the Tax Review.

A review has indicated that a contribution increase of 1% will be required to maintain the Long-term Care Insurance Fund at sustainable funding levels, while a rise of 1.75% would be required for the Guernsey Insurance Fund.