Pensions make up 86% of welfare spending

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The spending breakdown for the Guernsey Insurance Fund in 2025 was revealed in an Environment & Social Security (ESS) scrutiny meeting.

The meeting covered a range of topics including income support and youth employment and also showed 30% of those on income support were pensioners.

Deputy Tina Bury, President of ESS, said the island's social security system "looks a bit like a Picasso painting".

In the UK for 2025-26 the government said £177.7Bn of £333.7Bn social security spend was going towards benefits and support for pensioners – this is 55%.

In Jersey in 2024 the States said the figure was 77%.

Bury said "demographics are driving expenditure" in Guernsey.

In regards to the issue of long term care, Bury added: "It's a real pressure that we, cross-committee, are trying to address."

Additionally, Bury said 30% of incapacity sickness benefit was due to mental health.

Ed Ashton, director of operations for social security said the increase in income support payments was due to "a bit of both" of the number of islanders not working and changes to earnings.

He said the number of people coming off, and going on, income support was largely due to "fluctuations in people's incomes" and "changes in household makeup" such as separations.

Ashton added addressing the rise of young people not in education, employment or training required "investing early and investing to save".

About 800 islanders who are meeting "in-work" requirements are currently on income support – at a cost around £12.5 million in income support expenditure.

Bury said ESS was looking at "creative ways" to address the issues at hand, but "there will always be people that need support in various areas".

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