The island’s state pension will rise by 8.5% after a commitment by UK Chancellor Jeremy Hunt to maintain the triple lock guarantee.

Treasury Minister Dr Alex Allinson had previously said that the island will follow the UK’s lead on the decision.

The uplift means that the state pension will rise to a maximum of £241.59 a week.

Not everyone will get this amount, some people will get more, some people will get less.

The amount you get will depend on your National Insurance record.

Another change announced in the UK’s Autumn Statement means that islanders will be paying a higher percentage of our income for NI than our counterparts in the UK.

Mr Hunt has announced that the main rate for employees will be cut from 12% to 10% from January 6. It is currently charged at 12% on earnings between £12,571 and £50,271 – and 2% on anything above that.

In the island, the rate is 11%, on earnings between £145 and £864 per week, and 1% on all earnings above £864.

Also announced by the Tory Chancellor is a rise in the minimum wage which will put it above the island’s own rate.

The national living wage (UK’s minimum wage) will rise to £11.44 an hour, up from £10.42, for all workers over the age of 21.

In the island, the minimum wage is currently set at £10.75 per hour for anyone over the age of 18.

The new UK rate is still below the island’s voluntary living wage, which is £12.01. Tynwald has previously committed to marrying up the island’s minimum wage and living wage by the end of 2025.

The living wage is intended to represent the minimum level of pay necessary to allow people the basic opportunities and choices necessary for them to participate in society.

Dr Allinson said: ‘The news was not unexpected and I look forward to working with officers and building the triple lock commitment into next year’s Budget.

‘Work has already taken place to support Manx pensioners as we plan for the forthcoming financial year, with further announcements being announced in the Budget at the February sitting of Tynwald.’

He added: ‘In relation to the changes to National Insurance paid by the self-employed — these will need to be considered in light of the Social Security agreement the Isle of Man has with the UK.

‘Officers will be engaging on this issue with UK counterparts, following which I will be in a position to provide an update on what Treasury’s position will be concerning the possible application of these changes to the island.’

In accordance with the Autumn Statement, the Isle of Man has increased duty rates for tobacco products.

The rates of most tobacco products will increase by Retail Price Index (RPI, UK) plus 2%, with the rate for hand-rolling tobacco increasing by RPI (UK) plus 12%. Alcohol duty rates will be frozen until August 1, 2024.

The UK Chancellor also announced changes to the VAT applied to the installation of energy-saving materials, to be implemented in February 2024, and the extension of the zero rate of VAT to women’s sanitary productions from January 1, 2024.

The Isle of Man Government will replicate these VAT changes with details being posted on the Customs and Excise area of its website in due course.

Minister Allinson added: ‘In terms of the wider UK economy, I note with interest the Chancellor identifying opportunities and committing funds for investment across a range of sectors.

‘On a local level, the Economic Strategy and associated funds are playing a vital role in providing a framework for growth to support future generations. We are also starting to see movement on brownfield sites by private sector companies incentivised by the Island Infrastructure Scheme.’