Jersey’s new gov has unveiled a series of measures as it bids to tackle the cost of living crisis affecting islanders.

The package will, the Jersey gov says, put almost £15 million back into islanders’ pockets this year and almost £42 million in 2023.

This ‘Mini-Budget’, which forms part of Chief Minister Deputy Kristina Moore’s 100 Day Plan, includes an above inflation increase of 12% in income tax thresholds and allowances.

It is also proposed that Jersey reduces social security contributions by 2% from October 1 to the end of 2023 and doubles the island’s Cost of Living Temporary Scheme (COLTS) from £20 to £40 per person per month, from August to December 2022.

The Chief is also proposing that Jersey doubles the Community Cost Bonus (CCB) from £258.25 to £516.50 in October 2022 and encouraging more eligible islanders to take up the CCB and increases Income Support components in January 2023 to reflect the September 2022 RPI figure.

In a bid to help islanders keep warm, Jersey’s gov is also planning to increase cold weather payments to £70 a month from October 2022 to March 2023 and pensioners will see an increase of 7.7% in their pensions from October.

The Minister for Treasury and Resources, Deputy Ian Gorst, said: ‘During the election campaign the rising cost of living was one of the main issues raised on the doorstep and our 100 day plan committed us to introducing this mini-budget. 

‘Its key aim is to address the current cost of living crisis for Islanders and particularly those who are being hardest hit. For example, the tax threshold changes alone mean that a single person earning £10 an hour would see an increase in their take home pay of £520 next year, while a married couple, with two children, who are both earning £12 an hour, would be £1,243 better off.’

In addition to this package of measures:

  • The Employment Forum has been asked to consider increasing the Minimum Wage to £10 per hour from October 2022 and up to two-thirds of the median wage from January 2023
  • Ministers will be encouraging private sector landlords and estate agents to avoid inflationary rental increase if possible
  • A scheme will be developed to provide free period products to those who need them
  • Funding will be provided to community organisations to set up advice and support services.

Also included in the changes that will be debated by the States Assembly in September, is the deferral of the registration of offshore retailers to charge GST at source and the reduction in the de minimis level from £135 to £60, from the start of 2023 to 1 July 2023.  The change has been made following requests from some offshore retailers for more time to introduce changes to their systems.