A £1.8 million support package has been pledged by the Treasury to island residents over the winter.

The Christmas and winter bonus lump-sum payments package is designed to aid low-income and vulnerable Manx residents, and the plans to reinstate these payments will be put before Tynwald later this month.

They had been replaced last year by support payments aimed at helping the vulnerable pay high energy bills.

‘Energy support payments’ worth £300 each were paid to people in 2022 who receive an income-related benefit, such as income support or employed person’s allowance, and who are responsible for paying housing costs.

The total cost of last year’s payments was estimated to be just over £2 million, with it benefitting up to 3,500 households.

This year, the Treasury is set to spend £1 million funding the ‘Christmas bonus’, which will see a £40 lump-sum automatically paid to roughly 25,000 individuals and families on state pensions and other benefits.

A one-off winter bonus payment of £350 will also go to more than 900 pensioners and 1,350 working people on the island as part of the winter package.

The winter bonus is available to those on income support, but the sum can be reduced if a person shares responsibility for housing costs with other people.

Treasury Minister Dr Alex Allinson said: ‘These bonuses will help the most vulnerable members of our society.

‘The two bonus payments are expected to be paid in January, and will be targeted to those who need it most.’

Dr Allinson also confirmed the Manx government will mirror the UK’s approach to the state pension triple lock, to ‘provide pensioners with reassurance’.

That increase is expected to be 8.5%, but this has not been confirmed by the UK government.

The other £800,000 of the £1.8 million fund is set to be spent on TV licenses in the island.

The Manx government has agreed to extend free TV licences for all Manx residents aged over 75 for a further 12 months until December 31, 2024.

Dr Allinson said: ‘The move will enable roughly 5,000 Manx residents to continue using their TV sets without any financial burden.’

Pensioners on income support receive their licences free from the BBC, with the Manx government paying for those who do not receive the benefit.

Dr Allinson continued to say that government contribution to TV licenses is under review, with the introduction of additional eligibility criteria from 2025 being explored.