Jersey spends less on social welfare than any other country in Europe

It is part of the biggest overhaul of the income support system in the island in decades.

Twelve different benefits are to be replaced by one system based on household income.

A citizens' fund which will replace the parish welfare system and the social fund budget will also be set up.

Low dependency

Family allowance, attendance allowance, health insurance exemption scheme, rent rebate and abatement scheme and the invalid care and disability allowance will be replaced by a single system based on household income.

The Health Insurance Law will also be amended to target people who are chronically ill, which will give more flexibility in how benefits are given out.

Last month, a study carried out by the University of Nottingham for the States revealed Jersey spent less on social welfare than any other country in Europe.

The report also showed low levels of dependency, a relatively large number of adults of working age, high wages and low unemployment.