Households containing at least one retired person have experienced a 5.3% increase in living costs over the past year – the highest of any household group – according to the latest States figures.
Fuel and light costs have jumped by 16.6% in the year to September, leading to growing concerns about the financial pressures older islanders face as temperatures begin to fall.
Employment & Social Security president Tina Bury acknowledged the impact of rising energy bills and confirmed that a 19% increase in the winter fuel allowance was being proposed to help eligible households cope.
‘We’re committed to ensuring support remains available to those who need it most,’ she said.
‘We will also continue to monitor economic conditions closely and can consider further measures if necessary.’
The Winter Fuel Allowance is automatically paid to eligible householders receiving Income Support for 26 weeks from the end of October each year.
The proposed 19% increase reflects the annual rise in fuel and light costs recorded in the year to June – with the intention to help eligible households keep pace with costs in real terms.
The latest quarterly inflation bulletin, published by the States last week, showed that the cost of essential goods and services for households containing a retired person had risen by 6.7% over the year to September.
These include heating, electricity, housing, basic food and other everyday necessities.
By comparison, households without a retired person experienced inflation of 4.4%, while the average across all household types was 4.7%.
Low-income households were also among those hardest hit, experiencing a 5.2% increase in living costs, compared with 4.2% for higher-income households.
The bulletin identified electricity and kerosene as significant contributors to rising energy costs.
The price of coal and smokeless fuel also increased during the latest quarter.
The RPIX figure – which excludes mortgage payments – hit 4.6% at the end of September, compared to 3.3% 12 months earlier.
Housing added 1.1 percentage points to annual inflation, the biggest contributor of any category.
‘We recognise there is no single solution to the cost-of-living pressures some households face, and we’ll continue to keep the adequacy of support under review,’ said Deputy Bury.
‘However, any decisions must balance the need to support vulnerable islanders with responsible management of public finances.’
She encouraged anyone struggling with their energy bills to contact the Income Support team.