Inflation could reach 10% later this year

Inflation could peak at 10% later this year.

That's the admission from Treasury Minister David Ashford - who delivered a statement in Tynwald yesterday. 

Mr Ashford described the current economy as experiencing a 'perfect storm' - with two years of economic disruption caused by the pandemic, followed by Russia's recent invasion of Ukraine.

He acknowledged the impact on households of price increases is already being felt, with increases to energy bills and road fuel 
particularly prominent.

However, he said government will be offering further help for those on low-income, families and pensioners. 

He announced an additional £150 support payment which will be made to those in receipt of a range of benefits, including long-term sickness and pensions - it's thought to come into effect from June.

Mr Ashford also revealed he's considering increasing the Christmas Bonus for 2022 and paying it much earlier than usual.

Full details can be found below:

An Energy Support Payment of £300, which is available to households responsible for housing costs and receiving income-related benefits. These payments have already commenced and will be made between the 21st April and 5th May, depending on what benefits are received and the method of payment. The total cost of this measure, which will benefit up to 3,000 households, is expected to be approximately £1 million.

A Family Support Payment of up to £300, dependent on household income, available to families receiving Child Benefit, with additional payments for two- and three- children households. These payments are due to be made in mid-May, with a more detailed timetable to follow. 

Treasury says it's also currently developing a further intervention aimed at those households that did not receive the Energy Support Payment, but are likely to be unable to work, or face barriers to such. 

This will be payable to most of the same adult groups that usually receive the Christmas Bonus in November, which is mainly those receiving long term benefits and pensions. This includes pensioners
living at home and receiving a state pension from the Isle of Man, persons who are long term sick or disabled adults and their carers, and the recently bereaved. This Long Term Benefits Support Payment will be payable at the rate of £150 and it is hoped it will be received in June.