Social Security Department - Rise in rate of old age pension

Friday 26 August 12:16

Pensioners will shortly receive a letter from Social Security confirming an increase in their old age pension payments from the beginning of October. The increase in the index of average earnings of 2.1% announced today will be fully reflected in the value of the Social Security pension.

A full rate old-age pension is currently worth £199.99 per week and this will rise by £4.20 a week up to £204.19. For a married couple receiving a pension based on the contributions of the husband, the maximum rate will rise by exactly £7 a week from £332 .01 up to £339 .01. These rates will apply from the first Thursday of October.

Deputy Susie Pinel, the Minister for Social Security, explained: "This is good news for pensioners. The cost of living for pensioners is currently running at 1.1%, and the rise of 2.1% in pension payments means that the value of the pension has risen in real terms compared to last year. We will be writing to all pensioners in early September with details of their individual pension."

Between 2010 and 2012, prices rose faster than earnings and the value of the pension did not keep up with the price of goods and services. To protect pensioners from this situation in the future, the States changed the uprating of the old age pension in 2013. The Jersey old-age pension will now always increase by at least the cost of living (RPI pensioner). This protects pensioners when prices are growing faster than wages, typically during an economic downturn. When the economy is growing, the pension will keep pace with the growth in earnings, allowing pensioners to share in the economic prosperity of the island.

The total cost of pension payments made in 2015 was £166.7 million and this figure has increased steadily in recent years, reflecting the growth in the number of pensioners and improved life expectancies. By the end of last year just over 30,000 people were receiving a Social Security pension, up by 3,500 in the last five years.

Pension payments are made from the Social Security Fund and whilst this currently holds a reserve of over £1 billion, the total cost of pensions and other benefits paid out will soon exceed the amount of contributions collected each year. The Social Security Fund was set up in the middle of the last century and to ensure that it remains sustainable over the coming decades, the Social Security Minister has announced a major review which will consider the balance between the value of the contributions that need to be collected, and the cost of pensions and benefits paid out in the future. A public consultation to launch the review will start towards the end of September.


  • The Resolution Centre - Accredited Certificate in Mediation Skills The Resolution Centre and Queen Margaret University Edinburgh are pleased to provide an Accredited Mediation Skills course, unique to the Channel Islands.

    › read more
  • Launch of the 2017 JeCC Awards Come and find out more about the 2017 JeCC Awards

    › read more
  • 2nd Annual Real Estate & Real Estate Funds Conference Following the recent MIPIM real estate conference in Cannes, questions remain about the key global economic and geopolitical issues facing real estate investment professionals.

    › read more

    › read more
  • CIISF CYBER SECURITY SEMINAR - THE REALITIES OF RANSOMWARE The CIISF's programme of seminars covering the practical aspects of cyber security continues on Monday 24th April 2017 at 12.30pm at the Town Hall

    › read more
  • AJA CPD SEMINAR: CREATING HEALTHY SPACES Event to be held at the following time, date and location:

    › read more
  • Hot Topics in Jersey Insolvency ARIES, the Association of Restructuring and Insolvency Experts, a Seminar on Wednesday 17 May at 4.00pm at the Pomme D’Or Hotel, Jersey followed by refreshments

    › read more
  • WDF Jersey - Creating a Level Playing Field - Diversity in Action Women's Development Forum Channel Islands Creating a Level Playing Field - Diversity in Action with Martina Williamson Head of HR for Citi Europe from 12:00 to 14:00

    › read more
  • IoD Jersey Director of the Year Awards 2017 The IoD Jersey Director of the Year Awards 2017 are Jersey’s most anticipated awards night is returning this year for its eighth time.

    › read more
  • Are you a Socially Dynamic Organisation: Prosperity 24.7 What does a Socially Dynamic Organisation look like and why is it vitally important today?

    › read more

Chamber Knowledgebase

Our frequently asked questions

Chamber News 

All the latest news from Chamber in one monthly PDF

Jersey Airport / Harbours

The latest arrivals and departures, select a link above

The Jersey Chamber of Commerce - Annual Charity of Choice

the benefits of membership

Networking opportunities, including our popular luncheons
Topical seminar programme
Support and guidance on doing business in Jersey

And become one of over 500 member businesses supporting Chamber in its aim of ensuring that local business is at the heart of a thriving and diverse local economy.

Call 01534 724536
› About Chamber

Copyright © Jersey Chamber 2012 - The Jersey Chamber of Commerce welcomes your comments and views. However, the posting of comments is subject to our terms which can be read here. Comments posted by users of this site are not the Chamber's comments nor do they represent the views of the Jersey Chamber of Commerce.

↑ Back to top