Sir,
I’m very pleased to deliver my first Update Statement as President of the Committee for Employment & Social Security.
Since being elected to the Committee, we’ve been busy getting up to speed with the Committee’s varied operational and policy responsibilities, as well as tackling business-as-usual activities such as budget setting and the annual uprating policy letters.
In recent weeks, we’ve had the pleasure of meeting with representatives of some of the charity sector organisations that we provide funding to – many of which advocate for vulnerable groups. We have been blown away by the passion and dedication of these organisations. Beyond simply addressing needs, which sadly are growing in our community, they also give voice to the unheard, foster connection and promote inclusion. We look forward to continuing this engagement programme in the New Year.
This Statement was drafted prior to the publication of the proposed Government Work Plan, so it’s necessarily based on some assumptions regarding what may be identified as strategic priorities this term. Once the GWP has been approved by the States, the Committee will be able to finalise and publish its own Work Plan. In the meantime, I’d like to bring members up to speed on the latest developments in relation to key policy projects in progress and current thinking on the issues we’d like to focus on this term.
I’m confident that the Committee is well placed to embrace new areas of focus, having largely implemented the secondary pensions programme and Phase 1 of the Prevention of Discrimination Ordinance, two of the former Committee’s main priorities last term. I’ll start with a quick update on where we are with those programmes of work.
In relation to secondary pensions, on 1st October we reached a key milestone when the auto-enrolment duty came into force for employers with just one employee. This concluded the phased roll-out of the auto-enrolment duty, which started with the larger employers in July 2024, and means that all Guernsey- and Alderney-based employers are now required to offer and enrol their designated employees into a workplace pension scheme into which both the employers and employees make contributions.
As of 5th December 2025, Your Island Pension (or YIP) had received applications from over 1,000 employers. Employers from across all sectors of the economy have applied to YIP, with building services, commercial services, wholesale, retail and hospitality accounting for over half of all applications. We’re delighted that more pension provision has been created in these sectors.
Employers are not obliged to use YIP for their workplace pension - some will be using other pension providers – this wider data will become available in early 2026 and the Committee will report on this in due course.
Moving onto another of the former Committee’s main priorities over the previous two terms – the development of comprehensive anti-discrimination legislation.
Phase 1 of the legislation covering the grounds of disability, carer status, race, sexual orientation and religion or belief, is largely complete, with the Education section of the Ordinance due to come into force on 2nd January 2026, and some accessibility-related provisions due to come into force in 2028.
Phase 2 of the Ordinance includes age discrimination and the grounds covered under the existing Sex Discrimination in Employment Ordinance, namely sex, marriage, and gender reassignment, with any appropriate updates in the framing of those grounds.
In May 2025, the States agreed policy proposals to introduce protection from discrimination on the ground of age. This has been prioritised for legal drafting, and we hope this will be progressed soon.
The Committee is now keen to develop policy proposals in respect of the ‘sex grounds’. I’m under no illusions - I expect this to be a contentious topic – but that’s exactly why it needs to be addressed. The human cost of discrimination is not trivial, and I believe we have an obligation to ensure those at risk are protected.
Moving on to other strategic priorities - ESS expects to play a key role in both the GST Plus and Supported Living and Ageing Well Strategy Programmes this term.
The Committee will work in collaboration with P&R to deliver a restructured social security contributions system as a key element of the proposed GST Plus tax reforms, which we will debate next year. The introduction of a personal allowance for employed and self-employed people is intended to help mitigate the impact of GST on low- to middle-income households.
However, if GST Plus does not proceed, the Committee is currently minded to pursue the contributions restructure as a standalone project with a view to addressing some of the inequities that exist in the current system.
Moving onto the Supported Living and Ageing Well Strategy, or SLAWS - In February 2025, the States made some important decisions in respect of the Long-term Care Insurance Scheme, approving a package of proposals intended to stabilise the care home market and incentivise growth to meet demand.
Higher rates of long-term care benefit were implemented with effect from July of this year – the aim of these increases being to ensure that care homes receive fair recompense for the important function that they fulfil, thereby helping to stabilise the care home market.
In addition, the co-payment, which is the contribution payable by the person receiving care, is gradually being increased over a period of five-years – moving towards a position where long-term care benefit covers a person’s care costs and the co-payment covers a person’s accommodation and living expenses in a care home.
During 2026, ESS will be working towards implementation of the agreed changes to the eligibility criteria for Long-term Care Benefit, including the introduction of a user care cost contribution. We’re targeting implementation of the user care cost contribution sometime in 2027, although the exact date is dependent on, amongst other things, the preparation and approval of the necessary legislation and system changes to the existing benefits system.
However, it was noted by the former Committee when these proposals were brought to the States, that this really was only a ‘sticking plaster’. Although rate changes were necessary to help stabilise the care home market in the face of care home closures, the approved package of measures actually made the financial position of the Long-term Care Fund worse. The introduction of a user care cost contribution will help to mitigate this to some extent, but the Long-term Care Fund remains financially unsustainable in the longer-term.
Actuarial reviews of both that Fund, and the Guernsey Insurance Fund, have commenced. These reviews will provide vital baseline information regarding the financial outlook of the Funds to feed into both SLAWS and the Tax Reform Programmes.
In parallel with the implementation of the reforms approved by the States in February, we look forward to working closely with P&R and HSC to develop a community long-term care model that will meet islanders’ increasing care needs. This will ensure people receive the care that is right for them in a way that is fair, affordable and sustainable for future generations. My Committee and I believe that a review of carer’s allowance and severe disability benefit needs to form an integral part of this work.
Another of the Committee’s priorities is implementing the Work and Wellbeing Strategy, launched in May. Its vision is clear: to build a healthier, more resilient workforce and ensure everyone can access meaningful employment.
Workplaces shape not only our economy but our health and wellbeing — and in turn, these drive productivity. A healthy workforce is the foundation of a thriving economy and a long-term investment in our future.
ESS’s Work Support Team delivers this vision by helping people move from benefits back into work, supporting both personal wellbeing and the wider economy. They focus on early intervention, tailored support, and strong partnerships because every journey back to work is unique.
Working with healthcare professionals, our team ensures safe, sustainable returns to employment. Case managers provide coaching to overcome barriers and build confidence, supported by job matching, workshops, retraining, and voluntary schemes like Work2Benefit and Kickstart for experience and confidence-building.
Despite high caseloads, engagement remains strong, and feedback shows this support makes a real, tangible difference to people’s lives.
Members will be aware of the challenges the UK Government is facing in respect of high numbers of incapacity claims and I'm delighted that we're ahead of the game, but we can’t be complacent.
The Committee is keen to explore opportunities to increase investment into early intervention initiatives and services to reduce expenditure on benefits and secondary healthcare in the long-term. We’re also keen to invest more in skills. This is classic ‘invest to save’ thinking that we’d like to pursue to maximise the potential of our workforce in the face of the reducing fertility rate and an ageing demographic.
But we can’t do this on our own. We need to work in partnership with other States Committees, medical professionals, charity sector organisations and employers to create the necessary support systems, development opportunities, and workplace cultures to enable people to thrive in work.
As members are aware, Committees are obliged to focus their limited policy staff resource on the States strategic priorities, as set out in the Government Work Plan. We must also progress essential ‘business as usual’ work - in ESS’s case that’s things like the annual uprating of benefit and contribution rates and the minimum wage.
That being said, we hope to have at least some capacity to advance some other policy workstreams during the term. Progress will, as indicated, depend on resource availability, so I can’t commit to any specific timeframes around these additional priorities, but I would like to give members a sense of the types of things we’re keen to progress.
In common with many western economies, Guernsey has a low birthrate, significantly below the level which would be required to maintain the size of the population without relying on migration.
In that context, the Committee believes it’s critically important that the States takes action to ensure that Guernsey is a ‘family-friendly’ place to live; to create an environment where families can choose to build their lives.
High on the Committee’s list of priorities is the development of policy proposals for the introduction of shared parental leave, as previously directed by the States in 2015.
Guernsey’s statutory maternity and support leave entitlements lag far behind the UK, Jersey, and most other jurisdictions, reflecting an outdated model that assumes childcare is primarily a woman’s responsibility.
The shift from maternity leave to shared parental leave in most developed nations was driven by a desire to promote gender equality, support diverse family structures, and enable more flexible caregiving arrangements. It reflects a broader commitment to modernising workplace policies and empowering both parents to participate in early childcare. The Committee believes there is strong public support to move to shared parental leave and hopes to make progress on this during this term.
The Committee would also like to develop policy proposals for legislation to provide employees with the right to request flexible working, as previously directed by the States in 2018. This right was introduced in the UK in 2002 and in Jersey a decade ago where it’s viewed as a strategic tool to foster resilient, inclusive and productive workplaces. Of course, we’re aware that flexible working doesn’t work in all circumstances, and what I’m talking about here is a right to request, not a right to receive. However, flexible working can support people to stay in work. There are numerous circumstances where it can help, whether it be for those with young families, people with caring responsibilities, or for people with disabilities or health conditions.
We’re keen to consider whether to introduce a right to statutory redundancy pay. In both the UK and Jersey employees are entitled to redundancy payments – dependent on length of service - but no such right exists in Guernsey, although people can claim unemployment benefit if they meet the relevant contribution conditions.
In addition, the Committee is actively considering Guernsey’s potential exposure to AI-led automation and its implications for the labour market.
Finally, the Committee is keen to move forward on the legal aid review recommendations this term.
Legal aid is a vital public service which seeks to ensure that the citizens of Guernsey are not excluded from access to justice on account of their financial means. The scheme has constitutional significance and helps to secure compliance with the European Convention on Human Rights.
The aim of the review was to develop proposals for how to improve and extend the Legal Aid Schemes within the existing budgetary parameters. It identified three priority areas for reform:
- Reform of financial eligibility criteria
- Encouraging early dispute resolution and better outcomes for the client
- Tackling remuneration and supply
The report was shared with key stakeholders in April 2024, and they were invited to provide written feedback in respect of the reviewer’s recommendations.
The next step we’ll be taking is to evaluate the recommendations, considering the consultation feedback received, to decide which of the numerous recommendations to progress. We’ll then need to develop an implementation plan and get started.
There’s plenty of other things on the Committee’s ‘to do’ list, but my time today is short and that’s probably enough to be getting on with! I look forward to Members’ questions.
Thank you, Sir.