Warning: ‘Rates will not pay for rising welfare costs’

Saturday 17th September 2005, 12:00AM BST.

RATES contributions will not be high enough to meet increasing welfare costs, the Finance and Economics committee have said in a report to the States.

They say that while welfare costs are rising by 15% per year, rates are rising by the retail price index, which is substantially lower.

Finance are concerned that the States will have to foot the bill.

Although provision has been made to cover the difference until 2008, Finance president Senator Terry Le Sueur says that in years to come this cost, which will be more than £1.5 million per year, could grow to over £20 million.

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