£56.5m tax and benefits changes proposed to tackle Jersey's cost of living

Government buildings on Broad Street St Helier.
The Government of Jersey offices on Broad Street Credit: ITV Channel TV

Jersey's government has proposed a raft of new measures in a 'mini-budget', aiming to tackle the cost of living.

It was promised by the recently-elected Chief Minister, Deputy Kristina Moore, as part of her 100-Day Plan.

The measures include a 12% increase in Income Tax thresholds - meaning islanders will be able to earn more before being taxed.

Proposed changes to Jersey's Income Tax thresholds Credit: Government of Jersey

Social security contributions are also due to be temporarily cut by 2% between 1 October and 31 December this year.

New benefits are also being introduced, like a new scheme to provide extra support for families who moved to Jersey within the last five years.

The amount being given out to eligible islanders under the government's Cost of Living Temporary Scheme is also doubling to £40/person/month until the end of this year.

The government is also requesting the Employment Forum, which recommends the island's minimum wage, increases it to £10/hour from October 2022, and again to £10.80/hour from January 2023 - that's said to be around two thirds of Jersey's average wage.

Ministers estimate the new support measures will cost the Treasury £56.5 million over 2022 and 2023.

The changes will still need to be approved by States Members, who are able to request amendments to the plans set out by the government.

The 'mini-budget' is due to be debated in mid-September.