A Tynwald Select Committee has warned that poverty continues to affect a significant proportion of the Isle of Man’s population despite progress in raising incomes and improving living standards.
In its End of Term Report, the Select Committee on Poverty (2021) said one of the clearest successes of the current administration has been progress in improving the incomes of lower-paid workers.
The committee highlights that the previous Select Committee’s Income and Benefits Report recommended that the minimum wage should transition to the living wage within five years.
Since that report was debated in 2021, the adult minimum wage has increased from £8.25 an hour to £12.86 an hour.
Understanding Poverty
The report says the work of the 2018 and 2021 poverty committees has also contributed to a better understanding of poverty on the island, improvements in how poverty is measured and policy changes aimed at improving living standards.
However, members say poverty remains a significant issue. Using the Below Average Resources (BAR) measure, the committee said 14% of the Isle of Man population is living in relative poverty, compared with 22% in the United Kingdom.
While the report notes the island compares favourably with the UK on poverty rates, as well as unemployment and crime levels, members stress that “no level of poverty is acceptable” and that 14% remains too high.
The committee also raises concerns that while wages have increased, benefits have not kept pace.
It states that the gap between earnings and benefits has widened and warns that although people are better off in work, benefit rates may not be sufficient to meet a minimum standard of living.
Helping Reduce Poverty
Members point to several government initiatives which they say have helped reduce poverty and its impact, including the retention of the triple lock, the expansion of the childcare credit scheme, the energy efficiency scheme and the child benefit uplift.
The report also notes that increases in personal allowances, alongside changes to parental and bereavement allowances, will have a positive impact on lower earners.
Looking ahead, the committee recommends changes to how poverty is measured. It proposes replacing references to the Social Metrics Commission measure with the Isle of Man’s Below Average Resources framework, supplemented by lived experience data.
The committee also recommends that a new Select Committee on Poverty be established during the 2026-31 administration. It says poverty continues to affect 14% of the population, a number of areas identified by the 2018 committee remain unexplored, and many previously approved recommendations require ongoing monitoring and scrutiny.
The report is subject to motion at the December sitting of Tynwald.
