The Isle of Man Government has said too many households remain under financial pressure as it prepares to publish its latest report on poverty.

The Council of Ministers’ third Annual Report on Poverty Measures will be laid before the May sitting of Tynwald, setting out levels of hardship on the island and the support provided over the past year.

While the island continues to perform relatively well compared with the UK and international benchmarks, the report acknowledges ongoing cost-of-living pressures, including rising fuel prices and wider global instability, which are placing strain on household budgets.

A key feature of this year’s report is the introduction of a new ‘Below Average Resources’ (BAR) measure, developed by Statistics Isle of Man. The measure aims to provide a broader picture of poverty by taking account of household assets and unavoidable costs such as childcare and disability-related expenses.

Using this approach, around 14% of the island’s population is classed as having low resources, a figure broadly in line with other existing indicators. However, the report notes the measure is experimental and should be treated with caution.

The report also outlines a range of measures introduced over the past 12 months to support lower-income households. These include increases to pensions and benefits, with the basic state pension and full Manx state pension rising by 4.8% from April 2026 under the triple lock, and most other benefits increasing in line with inflation.

Additional support includes expanded access to Exceptional Needs Grants and Budgeting Loans, enhanced support for carers and working families, and efforts to improve access to banking and digital services.

More than 8,000 homes have now benefited from the Energy Efficiency Scheme, which prioritises pensioners and low-income households to help reduce energy bills and improve living conditions.

The report also highlights ongoing work to modernise social security services through the rollout of the TRANSIT digital platform.

It says progress has been made against most of the recommendations from Tynwald’s Select Committee on Poverty, although challenges remain, particularly around housing affordability, fuel and utility costs, and wider pressure on household finances. It adds that monitoring will continue as economic conditions evolve.

Treasury Minister Chris Thomas MHK said: ‘This report demonstrates the scale of Government action to support people through what remains a challenging period.

‘We are aware of the continuing pressures on the cost of living and the impact this has on households. While the Isle of Man compares well in some areas, our focus remains on those who are struggling and ensuring support is targeted and effective.’

The report will be debated in Tynwald this month, with Government continuing to work with the Poverty Committee, third sector organisations and community partners.

The Annual Report on Poverty Measures has been published on the Isle of Man Government website.