Bid for more money to fund benefits pulled
BBCConcerns benefit cuts would have to be made if more money was not freed up have been eased during debate on the States of Guernsey's 2027 Budget.
Employment and Social Security (ESS) had warned without extra funding it would have to cut the income threshold for family allowance or freeze benefits while it considered its options.
However, after ESS president Tina Bury said "intensive and constructive" conversations with Policy & Resources "over the last 24 hours" had led to the committee withdrawing its motion asking for up to £3.8m.
President of P&R Lindsay de Sausmarez said the committee supported the decision to withdraw the amendment, but what was agreed behind the scenes remains unclear.
She said: "We were keen to avoid real-world impacts to respond to a hypothetical risk."
More details are due to be shared during debate on Friday.
Deputies are set to approve one of two budgets for 2027.
The amendment had asked for an additional £3.8m, if option A was approved. That budget includes a 1% real terms budget cut across committees.
If Option B, which has an additional spending cuts alongside about £15.7m of expenditure, was approved, then ESS had asked for £1.6m.
Bury said: "Should our amendment not have succeeded ESS was going to have to take some really undesirable decisions and actions."
The committee had suggested household income thresholds for family allowance would be slashed from £125,000 to £98,000 or it would not seek to increase benefits in order to remain within its budget.
She said: "We were very clear at ESS that these were not actions we wanted to take.
"We have to make sure the assembly are clear what we might have to do depending on their choices.
"I think if we look at it more positively, what's actually happened is that even though at last minute, which is undesirable, we may be getting to a point where those actions won't have to be taken."
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