blog.gov.je
Senator Elaine Millar, Minister for Social Security
Why we’re stabilising Jersey’s Long-Term Care Fund
Most of us hope we’ll be able to live independently for as long as possible. But as we get older, many of us will need some extra support, whether that’s help at home, residential care, or nursing care.
That’s why Jersey has a Long-Term Care Fund. It helps make sure Islanders can get the care they need without facing the full cost on their own.
The proposed Budget 2027 includes plans to ensure the Fund is financially stable, so it can continue supporting Islanders now and in the future.
What is the Long-Term Care Fund?
The Long-Term Care Fund helps eligible Islanders with the costs of long-term care. It provides financial support towards care services, giving people and their families greater peace of mind if care is needed later in life.
The Long-Term Care Fund is highly valued and compares favourably with arrangements available in many other places. It helps people access the care they need without facing the full financial burden themselves. Stabilising the Fund now will help ensure this support remains available for current and future generations of Islanders.
Why does the Fund need more money?
The simple answer is that more people will need care in the future.
Jersey’s population is ageing, which means demand for care services is expected to grow over the coming years. In addition, as people live longer, they may have more complex care needs.
The Long-Term Care Fund provides vital support to Islanders, but it is no longer receiving enough income to cover growing care costs. As demand rises, the current level of contributions will not be enough to maintain the level of support people value and rely on.
Increasing contributions will help ensure the Fund can meet future demand and continue supporting Islanders when they need it most.
Needing long-term care can be one of the biggest financial challenges a person faces.
Protecting Islanders when they need support most
Needing long-term care can be one of the biggest financial challenges a person faces.
By stabilising the Fund, Jersey can continue to provide a safety net that helps protect Islanders from the high costs of care and gives families greater certainty about the future.
It’s about making sure that support is available when people need it most, whether that’s next year, in ten years’ time, or even further into the future.
A dedicated contribution for a dedicated purpose
The Budget 2026 proposed a 1% increase in contributions from 2027. We have looked at this again, and instead, the proposed Budget 2027 includes a gradual increase in Long-Term Care contributions to help keep the Fund sustainable.
The contribution rate will increase by 1% overall, introduced in three stages over three years, from 2028.
Contribution rates will rise as follows:
- 2027: no increase, remains at 1.5%
- 2028: 0.3 percentage point increase to 1.8%
- 2029: 0.4 percentage point increase to 2.2%
- 2030: 0.3 percentage point increase to 2.5%
Importantly, these contributions are ringfenced specifically for long-term care. That means the money raised can only be used to support the Long-Term Care Scheme. To support the operation of the Fund in 2027, a one-off transfer of £5 million will be made from the General Revenue Fund into the Long-Term Care Fund.
Planning ahead for Jersey’s future
Stabilising the Long-Term Care Fund is about looking ahead and preparing for the future.
By increasing contributions gradually now, Jersey can help ensure the Fund remains sustainable, can cope with rising demand and costs, and continues to provide support for future generations.
As our population ages, the need for long-term care will only grow. The proposals in Budget 2027 will help ensure the Long-Term Care Fund continues to protect Islanders, giving people confidence that support will be there when they need it most.