If you’ve heard the Government’s Social Security reform described as “net £5m” and assumed it wouldn’t affect your business much, it’s time to look more closely.
Chamber has reviewed the proposals in detail. The headline figure masks a more significant shift in additional contributions, the majority of which lands on employers with no offsetting or allowances.
The Numbers
Social Security reform is part of the GST+ package and is presented as delivering a net £5m. In reality, this reflects £12m of reductions (the “Plus” – including allowances) and £17m of additional contributions.
The majority of that increase in contributions falls on employers, not individuals.
Three Changes That Matter to Employers
1. Rates are going up and faster than planned.
2. No allowances for employers
3. Payroll systems need to change – but the system doesn’t exist yet
What Chamber is Asking For
We are not opposed to funding a sustainable Social Security system. But we are asking Government for:
- A full breakdown of the £17m employer increase, showing what was already planned, what is accelerated, and what is new
- Transparency, so members can understand what is genuinely new policy versus pre-agreed increases
- Manageable phasing, with clear timelines
- An assessment of the cumulative impact on Guernsey’s business community
Come and Have Your Questions Answered
We want every Chamber member to understand what it means for them and to have the opportunity to make their voice heard before decisions are finalised.
Join us on Thursday 21st May at 8am at Camilla’s Café for a member briefing.
Our team will walk through the proposals in detail, answer your questions, and gather the evidence we need to represent your business effectively in our response to Government.
You can also read the full Chamber member briefing document here:
