Guernsey

Guernsey's flat economy blamed for social security overspend

The flattening of Guernsey's economy is to blame for the increased amount of benefits being paid out, according to the social security minister.

Deputy Allister Langlois said £52m was spent on benefits and allowances in 2012. The budget is £50m.

He said the £2m increase was because of the number of people claiming supplementary benefits.

The minister said he hoped work to help the economy grow would reduce the amount paid out in 2013.

The majority of social security budget is formula-led, which means it is compelled to pay allowances and benefits to those who claim.

Other spending, on charity grants, community and environmental projects increased by £20,000 to £2.66m in 2012.

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