Incomes of island pensions have been growing at a faster rate than that of working families.

Research in the UK has found that there has been strong recent growth in typical pensioner incomes - with over-65s more likely than their predecessors to still be in work, own a home and have access to generous private pension pots.

Carl Hawker of the Cabinet Office said a similar picture was emerging here.

But he stressed while pensioner incomes here had been growing faster than those of under 65 households, they are not higher overall.

He explained that evidence of this had come in figures come from the household income and expenditure survey which was done in 2006-7 and again in 2012-13.

Between those dates pensioner household incomes grew by 48 per cent and working household incomes by 37 per cent, equating to real (after inflation) growth of 3 per cent and 1.7 per cent per annum respectively.

Listing the reasons, Mr Hawker said: ’State Pensions have been increased by the higher of earnings, inflation or 2.5 per cent whereas employed persons earnings fell in real terms between 2008 and 2014.

’More pensioners have been getting employer pensions particularly recent retirees and more pensioners are staying in work post 65 and supplementing overall income in this way.’

The report by the Resolution Foundation for the Intergenerational Commission, entitled ’As Time Goes By’, tracks the scale of income growth across different generations over the last 50 years.

It highlights how strong growth in pensioner incomes - coupled with weak income growth for working age households - has driven a huge change in living standards across Britain.

Typical pensioner households in the UK are now £20 a week better off than typical working age households (after housing costs), while back in 2001 typical pensioner incomes were £70 a week lower than working age incomes.

But Mr Hawker pointed that the Resolution Foundation report compared median - not average - incomes after housing costs. He said: ’We have not done this analysis as it is not clear from the report how they have adjusted for this.

’Housing costs will be a large part of the difference between generations, mainly as there are more pensioner households as owner occupiers with no mortgage. So it is possible that those under 65 have lower incomes post housing depending on how you choose to measure it.’

Chief Minister Howard Quayle, speaking ahead of the Budget this week, said: ’Helping working families is important. We are aware of the challenges they face.’