General Update

Committee for Employment & Social Security

Wednesday 22 May 2024

General Update

Sir,

I'll start with the Affordable Housing Development Programme - where progress is being made on several fronts.

Services and foundations are being installed for 14 units of specialised housing at La Vielle Plage, with an indicative competition date of Q3 2025. Meanwhile a unit at Sir John Leale Avenue, designed to meet a specific family's needs, will be completed next month.

The Guernsey Housing Association has secured planning permission for the development of 57 one-bedroom units at the former C.I. Tyres site in La Charroterie, now known as 'Domaine des Moulins'. And the Association is finalising the project plan.

Detailed designs are being prepared for the development of the former Braye Lodge site, in close consultation with Planning Officers, which, due to its proximity to the PEH, is a prime site for housing key health workers.

A joint venture between Infinity Construction Limited and the GHA now has planning permission for 21 units of accommodation on Oberlands Road. The agreement will see the GHA purchase 15 completed one-bedroom apartments from Infinity, which it would rent to key workers, while the other six homes built on the site will go to the private housing market.

The GHA is also progressing negotiations on a joint venture development on the Pointues Rocques site, which could see 68 units of housing delivered, 41 of which would be for Affordable Housing.

The progress of these two joint venture developments, are excellent examples of a new way of developing sites which can deliver against both the Island's private and Affordable Housing needs.

Moving onto consideration of larger sites, the GHA has appointed Savills to undertake a master planning exercise for the Fontaine Vinery and Duval Vinery sites.

Stakeholder workshops involving parish representatives, infrastructure providers, the wider community and service experts took place in March, with the final workshop taking place this Friday.

The GHA will then have the outline site plan and infrastructure proposals against which it can prepare detailed designs.

Although the Committee is absolutely focussed on advancing the Affordable Housing Development Programme, it remains a source of great frustration to us that it takes such a long time for these larger sites to move from identification to 'spades in the ground'.

Very often sites in the Affordable Housing Development Programme are complex to build due to their scale, surrounding area and significant infrastructure issues.

There are always reasons why these sites were not picked up and developed before they became part of the Affordable Housing Development Programme and now we have to address those issues.

Planning for these sites takes time to ensure it is done right, but that is important for those who will live in them, those living in the surrounding area and the wider community.

It does take far more time than my Committee, States Members or the community would ideally wish. But it is the right thing to do.

I must make it abundantly clear that this is not a criticism of anyone or any organisation. Quite the contrary - an enormous amount of hard work is going on behind the scenes to progress Affordable Housing developments as quickly as possible.

A key tool in making sure the programme of Affordable Housing can be continued and expanded will be the provision made for Affordable Housing in the next iteration of the Island Development Plan and my Committee is very keen indeed to learn what is being proposed in this respect.

Moving on to the Supporting Occupational Health & Wellbeing Programme. The programme is a very good example of partnership working and I'm encouraged by the engagement we've seen from HSC (particularly Public Health), primary care, occupational health, and the third sector.

There's an important relationship between work and health with evidence showing that healthy life expectancy is negatively affected by economic inactivity. We want to make it possible for people to stay in work, or return to work, and by doing so help to maximise workforce participation. 

Working collaboratively, the programme will introduce preventative and proactive support for people in work to reduce sickness absence. And, importantly, reduce the number of sickness claims which then become long-term.

On this point, in 2023 we saw the volume of new incapacity benefit claims - that is the number of claims reaching a duration of six months - reduce to its lowest level since 2017, and so far in 2024 those numbers are continuing to reduce.

The findings of an employer survey on occupational health needs will help form the pillars of what will become an Occupational Health Strategy for Guernsey and Alderney. This work will reinforce commitment to work rehabilitation and wellbeing from a strategic perspective and will help support an active workforce.

At an operational level, a case management team has been established within Social Security. Officers proactively contact customers if their claim for sickness benefit has lasted, or is expected to last, beyond four weeks. Where appropriate, officers liaise with treating practitioners and employers to agree return to work plans and signpost other suitable support. 

In identifying a pathway back into work, case managers provide flexible support and can access initiatives which enable a gradual return to work, re-training, voluntary work, work experience, paid work placements, recruitment grants (for employers) and back to work bonuses. The team is now considering how this support can be further improved. 

Returning to work after a long period of absence is very different to doing so after a few days off. While it isn't necessary in all cases, having flexibility within the benefits system is essential.

Comparing calendar years 2022 and 2023, the SOHWELL team saw a 120% increase in the number of people returning to work on a gradual basis after a period of illness. If the benefits system didn't support this, it's likely that either the sickness period would have run on until an individual was fully fit to return to work or run the risk of a person returning to work too quickly only to experience another period of absence.

Turning now to a topic which usually flies under the radar but is a vital public service of constitutional importance - Legal Aid.

The Legal Aid Scheme seeks to ensure that Bailiwick citizens are not excluded from access to justice on account of their means.

The current provision hadn't been reviewed since 2007 and the financial eligibility assessment criteria remain as originally established in 2005.

An independent review of the Legal Aid Scheme was jointly commissioned in May 2023 by P&R and ESS.

The independent reviewer carried out a very thorough piece of work, including extensive consultation with stakeholders and comparisons with other jurisdictions. He concluded his work in late 2023 and presented his recommendations to the two Committees in January this year. 

I'm pleased to say he concluded that the current Guernsey Legal Aid Scheme stands up well by international standards, both in terms of its coverage and the simplicity of its rules. However, he identified a good deal of scope for improvement best achieved by developing the current scheme rather than more fundamental reforms.

The Committee is currently seeking the views of all stakeholders in respect of the 80 plus recommendations set out in the report. The recommendations will then be considered by the Committee in the light of any feedback received.

It's clear this will be a significant and ongoing piece of work for the Committee, the Guernsey Legal Aid Service and, potentially, other organisations involved in the administration of justice in the Bailiwick, well into the next term of government.

Turning now to the Supported Living and Ageing Well Strategy, or SLAWS. When I last reported to the States in December 2023, I advised that rapid progress was being made with particular focus on the provision and funding of long-term care.

I regret to advise, although this will come as no surprise to members of this Assembly following recent public comments from the Presidents of the three Committee's engaged in this work, that this is no longer the case.

It's neither appropriate, nor possible within the time available today, to explore the differences of opinion that are currently hampering progress. Suffice to say that the three engaged Committees - ESS, P&R and HSC - have, as yet, been unable to agree how best to proceed.

This was mainly precipitated by the change in the membership of the Policy & Resources Committee but is also reflective of the difficulty of bringing forward any matter of substance, particularly controversial matters, towards the end of a political term.

But I remain ever hopeful.  When representatives of the three Committees met recently there was what is best described as a refreshingly candid exchange of views.  And I still believe we might be able to chart an agreed path forward. Albeit not one which fully satisfies anyone. 

If this proves impossible, it's likely that ESS will bring forward proposals relating to matters falling specifically within its mandate, such a long-term care benefit rates and uprating policy, on the basis that it's better to do something, than nothing at all.

Another significant project the Committee is working on is the review of the structure of the social security contributions system.

Members will recall that the Tax Review, considered by the States in early 2023, included a proposed restructure of the Social Security contributions system aimed at reducing inequities across different classifications of contributors and making it more progressive.

The Assembly subsequently agreed to direct the Committee to develop detailed policy proposals for a progressive restructuring of the Social Security contributions system and to return to the Assembly with proposals by the end of 2024.

The proposals for the restructure of the contributions system set out in the Tax Review Policy Letter form the starting point for the current review, although those proposals do need to be modified to some extent due to the review now being standalone, and not part of a proposal that contains broader changes to the tax base.

This work is well underway, and it is anticipated that the Committee will be able to meet the end of 2024 reporting deadline. Although, obviously, it is a matter where consultation with P&R will be important.

Moving on to secondary pensions.

Following the launch of Your Island Pension in January 2024, promotion of the forthcoming statutory obligation on employers to enrol their employees into a Secondary Pension Scheme has intensified.

Sovereign, the provider of Your Island Pension (or 'YIP'), is also running a campaign to raise awareness amongst employers.

On-boarding through Sovereign's digital platform continues with the option to submit relevant files through the States of Guernsey's 'Returns Creator' product.

The requirement for auto-enrolment comes into effect on 1 July for employers with 26 or more employees. This will then be rolled out in phases to smaller employers, culminating in the duty applying to employers with one employee from 1 October 2025.

The Prevention of Discrimination (Guernsey) Ordinance, 2022 entered into force on 1 October 2023.

So far this year the Employment & Equal Opportunities Service has seen an increase in customer enquiries of over 17% compared to the same period last year. The level of complexity of these cases is also increasing with over 15% of all customers raising concerns or complaints relating to multiple issues. 

Employees still make up the majority of customers at just over 50%, however, it's really encouraging to see the number of employers accessing the service gradually increasing and now accounting for nearly 30% of all customers, compared to 21% in the same period last year. 

Perhaps unsurprisingly, discrimination is now the top reason for customers to seek advice from EEOS accounting for 17% of all enquiries so far this year, compared to less than 5% for the same period in 2023.  

The team is managing the increased volumes well and feedback from customers has been positive. 

Since October 2023 there have been a total of 47 pre-complaints received, 17 of which involve at least one claim of discrimination. Not all pre-complaints will result in Tribunal proceedings as many cases will either be withdrawn or settled before matters progress that far. 

A high-level review of the operation of the Ordinance, is due to be carried out in Q3 2024.

Phase 2A of the development of the Ordinance aims to extend its coverage to the ground of age and those grounds covered under the existing Sex Discrimination (Employment) (Guernsey) Ordinance, 2005 - those are sex, marriage and gender reassignment - with any appropriate updates in the framing of those grounds.

The Committee's planning to launch a public consultation soon in respect of age discrimination. Further policy work is necessary before a similar consultation can proceed in respect of the grounds covered under the existing Sex Discrimination Ordinance.

The timeframe is very challenging indeed, but the Committee remains committed to trying to bring policy proposals to the States in respect of all aspects of phase 2A during this term of government.

And finally, Sir, I can advise that the Committee will be submitting a Policy Letter in early July, proposing the rates of the minimum wage to apply from 1 October 2024, and reporting on the results of a recent public consultation regarding the development of a new medium-term plan for the minimum wage.