Price of housing and groceries cause most concern

People in Jersey say the price of housing and groceries is causing them the most concern, a report has found.

The Policy Centre Jersey said its cost of living report surveyed 1,000 residents in January.

The report found housing was the most important issue for 17 to 34-year-old age groups and it was significantly more important than for other age groups.

It also found groceries were, on average, 14% more expensive than in the UK and Jersey lacked discount retailers which were more common in the UK.

The report revealed 64% of islanders now identified the cost of living as the most important issue facing Jersey, rising to 82% among single parents.

The report said: "The real issue is not just high prices, but people's ability to meet them.

"Real earnings have not increased since the beginning of the century - and have actually fallen by 3.3% since 2020."

The average house price in Jersey was £569,000, the report said, which was on a par with London and 50% higher in the south-east of England.

"Those owning outright and those whose rents are fully met by income support are in better position than those who have bought recently or who are paying a market rent," the report stated.

With groceries being more expensive on the island, the report found low-income households could pay up to 48% more than their UK counterparts.

The report has considered possible measures to help reduce the cost of living, including a renewed focus on increasing house supply, an exploration into ways to enable low-cost retail entry into the market and reviewing of regulatory barriers that raise consumer prices.

Senior advisor of the policy centre Sir Mark Boleat added: "There is ample evidence on why the cost of living is higher in Jersey than the UK, but tackling the problem is not easy.

"The obvious sector where the cost of living can be reduced is housing, which requires policies that increase the supply of housing rather than frustrate it through the planning system.

"A second sector is retailing, specifically by actions to encourage low-cost retailing."

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