THE new government is “acutely aware” of the cost-of-living pressures facing Islanders, according to the Treasury Minister, who said that “a range of potential and targeted policy interventions” are being considered as part of the Budget process.
Senator Alan Maclean’s comments followed the news that new UK Prime Minister Andy Burnham, setting out his first major policy announcement, has decided to cut VAT on domestic electricity bills from 5% to 0% from 1 October, in a move intended to “give people breathing space”.
A coalition of charities, schools, businesses and family organisations recently sent an open letter to States Members, reporting that families in Jersey “are increasingly experiencing hidden poverty despite working”.
One of the 13 signatories, Caritas Jersey chief executive Patrick Lynch, said: “There needs to be some short-term measures to help people going into this autumn and winter, and then there needs to be more medium to long-term structural changes that will eliminate poverty completely.
“And to do that, our hope – and now our expectation – is that there will be a task force on poverty or task force on the cost of living.”
He contended that there were “a suite” of potential short-term measures that could be implemented by government.
“A cut in duty on fuel would be one, and also a social security holiday for those on the lowest incomes would be a tangible way of getting money into their pockets.”
Following Mr Burnham’s announcement regarding VAT on electricity, Senator Maclean said: “The new government is acutely aware of cost-of-living issues on the Island and is looking at a range of potential and targeted policy interventions through the budget process.”
