The latest Annual Report on Poverty Measures revealed that 14% of the island’s population are assessed as having “low resources” under a new poverty metric.
The report, which cited that rising living costs and fuel prices continue to place pressure on many households, will be laid before Tynwald next month.
The report introduces the Isle of Man’s first Below Average Resources (BAR) measure, developed by Statistics Isle of Man and aligned with UK methodology.
BAR Measure
BAR goes beyond income alone by factoring in liquid assets and unavoidable costs such as disability‑related expenses and childcare.
While described as experimental, it marks a significant shift in how poverty is understood and monitored.
Although the island continues to perform better than the UK on most indicators, the report highlights groups at higher risk, including private renters, lone parents, pensioners and people on sickness‑related benefits.
It also warns that global instability is likely to push fuel prices higher, with particular concern for households reliant on home heating oil.
Supporting Low Income
Over the past year, Government has delivered a wide range of measures aimed at supporting low‑income and vulnerable households.
These include a 4.8% rise in state pensions, inflation‑linked increases to most benefits, higher National Insurance thresholds, and a £2,250 increase in the personal tax allowance, lifting around 3,600 people out of the tax net.
Exceptional Needs Grants and Budgeting Loans have been expanded, and a new Verification of Identity Letter now helps people without passports or driving licences open bank accounts.
More than 8,000 homes have benefited from the Energy Efficiency Scheme, while childcare support has widened through the Childcare Credit and Inclusion schemes.
Employment initiatives include the youth‑focused Making Work Worthwhile pilot and continued support through the Job Centre and Disability Employment Service.
Housing Affordability
However, the report also acknowledges areas where challenges remain. Housing affordability continues to be a major pressure, income growth has not kept pace with inflation since 2018/19, and 10% of residents reported going without adequate heating due to cost.
Several long‑term reforms, including modernising tenancy law, minimum rental standards and delivering 1,000 affordable homes, remain in progress.
Treasury Minister Chris Thomas MHK said Government would continue a coordinated, evidence‑led approach to supporting those most at risk.
The report can be found here.
