Government considering pension alternative to 'bank of mum and dad' for housing deposits - Jersey Evening Post
by Elen Johnston · Jersey Evening PostPosted inNews
Government considering pension alternative to ‘bank of mum and dad’ for housing deposits
by Elen Johnston 13 July 202610 July 2026
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ALLOWING young Islanders to take the first year of their States pension as a lump sum to assist with housing deposits is being considered by ministers as a measure to help people take their first steps on the property ladder.
A Citizens Advance policy proposal is being discussed in the UK which could allow eligible people to receive one pensionable year in advance of retirement age in exchange for delaying receipt of their pension by an extra year.
The scheme, which is supported by the UK’s Social Market Foundation think tank, would be available to those who have made pension contributions for a period of ten years.
Social Security Minister Elaine Millar has said a similar initiative could be introduced in Jersey and that ministers are “prepared to consider it”.
She said: “This idea could help younger people who do not have access to family wealth by providing a lump sum of money to put towards a home deposit.
“For an eligible person living in Jersey, this could mean receiving a lump some of up to approximately £15,500 in exchange for not receiving the Social Security pension for a year at pension age which is 67 years of age.”
However, she added: “This immediate benefit would need to be balanced against the reduction in Social Security pension which for an individual can be worth up to £298 per week depending on their contribution record.
“People choosing to take the advance would need to make sure they earn or save more for when they are 67 years of age to replace the Social Security pension for a year.
“I would be prepared to consider this idea or some variation of it further with the Housing Minister, to see if it would improve outcomes for young people in a better and more sustainable way, than policies we currently have in place.”
The government has introduced several schemes in a bid to help first-time buyers in recent years including the First Step Scheme – which was a result of £10 million of government funding – and provides for equity loans of up to 40% towards the property purchase.
Sharing his thoughts on the potential for Islanders to receive a lump sum from their States pension pot, Deputy Malcolm Ferey said: “I am always interested to hear and consider new ideas to help people who wish to aspire to the dream of home ownership.
“The idea of bringing pensions in to support people into home ownership is an interesting one, but I would certainly not want to see this disadvantage someone later in their life. If it has merit, then I’d consider exploring it further.”
However, he added that there are a number of existing ways that people are being helped to overcome difficulties with housing deposits, as well as ways the market is responding.
Deputy Ferey said: “We have seen the return of 100% mortgages, but I appreciate these typically need to be squared with a family guarantor.
“In addition, private developers have introduced initiatives that make it easier to buy without a deposit, including the States of Jersey Development Company which is currently offering deposit payment plans on its upcoming Westward development.
“We are in a good place in Jersey at the moment and we have taken actions to deliberately create an environment where more people are assisted into home ownership with help-to-buy schemes than we have ever seen before.”
He continued: “Andium Homebuy does not require a deposit and eligible Islanders can have up to 25% of the purchase price deferred. To some degree this acts as a deposit with local banks.
“We now have many family homes being built by Andium on the Bridging Island Plan re-zoned sites, which will be available for purchase with a 30% bond.
“The First Step scheme contributed up to 40% of the purchase price of an open market home but required a 5% deposit contribution. I have already said I would like to run this scheme again in the future and will be keen to look at its terms to ensure we are helping people as much as possible.”
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