Many households experiencing financial strain and a quarter of renters living in 'relative poverty'

Report into poverty on the Isle of Man published

A new report suggests a quarter of Isle of Man residents in the private rental market are living in 'relative poverty'.

The figures come from the 2023/24 Household Income and Expenditure Survey, which have been highlighted in the Council of Ministers’ Annual Report on Poverty Measures.

It says renters are more likely to experience economic hardship compared to homeowners, while 11 percent of households live on less than 60 percent of the median household income.

That figure rises to 15 percent when housing costs are included.

Overall, household income on the Isle of Man is said to have increased by 10.8 percent since the previous survey carried out in 2018/19, though it's not known if it's kept up with or exceeded the rate of inflation (at 21 percent) over the same period.

Despite this, many households are experiencing financial strain as they increasingly rely on savings to meet their expenses, the report says.

Compared to the UK, the median level of disposable household income on the Isle of Man is higher by approximately £17 a week.

Also included in the annual report are the results of the Social Attitudes Survey, to which approximately 14.6 percent of respondents reported finding it difficult or very difficult to live on their present income.  

The Island’s Minimum Wage increased to £12.25 in April.

A second planned increase, to align the rate with the Living Wage later this year, is currently under review.

Other support measures include: employment support, increases in key benefits for working families, changes to the rates of Child Benefit and eligibility thresholds.

The Childcare Credit Scheme 2024 has extended financial support to parents of children aged three and four.

And Social Security within the Treasury is providing lifeline payments to victims of domestic abuse, helping them to flee dangerous situations. 

In summary, the report says: 'Poverty remains a complex issue on our Island.

'The findings in this year’s Annual Report on Poverty Measures, the first since the completion of the 2023/24 Household Income and Expenditure Survey, offer an insight into the lived experience of Island residents.

'Bearing in mind the caveats around the validity of survey data, it provides a picture of where the challenges lie and provides direction for our next steps.

'Despite economic recovery in some areas, the rising cost of living, inflationary pressures, and housing challenges have combined to deepen insecurity for many households.

'The proportion of people living below relative low-income thresholds, including children and working-age adults, remains notable.

'Over the past year, work has intensified across Government on multiple fronts.

'Protection for vulnerable energy customers is in place, increased protection for those in private rentals is being investigated, childcare support has expanded, and employment initiatives are supporting people into work.

'We have not waited for perfect data to act. We have instead moved forward with practical, informed measures that aim to improve long-term outcomes and support immediate needs.'

It continues: 'In publishing this report, we reiterate that the work of tackling poverty is not complete, but it is active, evolving, and increasingly grounded in evidence.

'As we look ahead, we do so with a clearer understanding of where we stand and what our next steps are.'