Jersey Budget 2027: Families to get more support with cost of living

Families in Jersey are set to get extra help with the cost of living under the proposed 2027 Budget, including a doubling of the parental grant, more funded nursery hours and £250 per school-age child.

The government says its proposed budget for 2027 is focused on bringing public spending under control, restoring financial discipline and strengthening Jersey’s financial position.

It also outlines support for those Ministers say need it the most.

If approved, the Parental Grant will increase from £900 to £1800. It's a one-off payment made after the birth or adoption of a child and is aimed at helping parents to meet the significant upfront costs associated with welcoming a new family member.

The government says:

"This measure recognises the financial pressures that many families face during the early stages of parenthood and provides targeted support at a time when household expenditure can increase considerably.

"By doubling the value of the grant, the (Social Security) Minister aims to deliver practical assistance to around 700 families each year, helping to ease cost-of-living pressures and support the wellbeing of children and parents."

The government also wants subsidised nursery care for two to three year olds to increase from 15 to 20 hours a week - worth more than £2,000 to families, who are reimbursed the term-time fees they pay.

Parents of school-age children are set to get a one-off family support payment of £250 per child for households earning up to £80,000 a year, and free school meals could be extended to disadvantaged secondary pupils on Jersey Premium.

There are also proposed increases in the child tax allowance (£4,050) and childcare tax relief (£8,300, or £21,550 for working parents paying for registered childcare for pre-school-aged children)

The personal tax allowance will also increase, so that workers can earn £21,850 before paying income tax.

Other struggling islanders are set to get a one-off extra £200 on their Community Cost Bonus payment.  The bonus, currently £516.50, is for households just above the Income Support threshold.

£1.33bn of spending is forecast in the 2027 Budget, with £1.4bn of general revenue income forecast.

After a series of landmark laws were passed earlier this year to address violence against women and girls in Jersey,  £5 million has been set aside in this budget for that work.

The government says:

"The new legislative framework will strengthen protections for Islanders and improve the response to victims, but it will also place additional demands on a range of public services and organisations.

"To ensure that services have the capacity and capability required to meet these obligations, funding has been allocated across a number of Heads of Expenditure, including Non-Ministerial Departments.

"Given the cross-government nature of the legislation and the inherent uncertainty around future demand, contingency funding has also been set aside within the Central Reserve should VAWG-related case volumes exceed current forecasts."

The 2026 budget saw a 5.4p cut in the duty on a pint in the pub to help the island's struggling hospitality sector.

However, this budget is proposing a 1p increase in a pint of draught beer. A 5p increase in a 75cl bottle of wine is also proposed.

However, there is something in the Budget for local drinks-makers:

"To build on the expansion of small distillers’ relief in 2025, which has supported growth in the Island’s distilling sector, the production threshold for qualifying as a small distiller will be increased to 30,000 litres of pure alcohol.

The government says it is looking at other measures to support venues that serve alcohol:

"To assist the cost of living and support the island’s hospitality sector, the Minister for Treasury and Resources has asked officers to explore the feasibility of providing excise duty relief for those licensed to sell alcoholic drinks in bars, hotels, clubs and restaurants.

"The review will examine the overall package of support available to licensed premises, including the existing tap relief for alcoholic drinks sold from kegs and other large containers. The review will take place during 2027 with a view to bringing forward a report to Ministers in time for Budget 2028."

Another big increase in tobacco duty is expected - 88p (7.8%) on a 20 pack - and 10.8% on cigars.

As a tax on vape liquid was only introduced this year, the government says it won't be increased this year.

The Jersey Overseas Aid budget is set to be frozen at its 2026 level of £22 million from 2027 to 2030, leading to savings of £12 million which will go towards the targeted cost of living measures and the VAWG implementation work, 

The government says:

"This strikes a balance between Jersey's international responsibilities and the needs of the local community at this time."

The Budget proposes fuel duty be frozen for 2027, while petrol and diesel prices continue to soar due to the conflict in the Middle East.  There had been calls for a temporary cut in fuel duty.

A vehicle ownership or road user charge is not proposed in this budget, but the government has said policy development work will start next year.

"The vehicles seen on Jersey’s roads are changing in response to global carbon reduction ambitions and an evolving global market.

"In response to Government policies and Islanders’ own choices, receipts of road fuels duty are expected to decline.

"However, it will still be necessary for the Government to meet the costs of road maintenance and improvement along with the wider costs arising from road and vehicle usage.

"The income currently earned from road fuel duty is a key source of General Revenue which supports wider policy initiatives, such as the sustainable transport policy and the response to the climate emergency, along with contributing to the funding of other essential services.

"In time, alternatives will need to begin making up the funding lost from declining fuel duty.

"Alternative charges may include a form of vehicle ownership charge or a road user charge. Ministers decided to pause work in 2024 on the basis that the data was showing only a steady decline in fuel duty receipts."

The government has decided that a stamp duty holiday for people buying properties to downsize 'would not be the most appropriate mechanism' to encourage islanders to move to smaller properties, and Ministers will now consider 'non-tax measures to assist and encourage movement.'

The case for removing stamp duty on registering a mortgage in the Royal Court is being considered for the 2028 budget, as are measures to encourage young people to save, possibly with a Jersey Individual Savings Account (ISA) type product.

 Treasury Minister Alan Maclean (at the podium) presenting the 2027 Budget.

Chief Minister, Senator Lyndon Farnham, said:

"It (the budget) strikes a careful balance: helping Islanders with the pressures they face today, while investing in Jersey’s future and maintaining strong public finances.

"It includes practical measures to ease pressure on household finances, particularly for families and those facing the greatest cost-of-living pressures."

Treasury Minister, Senator Alan Maclean, said:

"The principle behind this Budget is straightforward: taxpayers’ money should be prioritised to where it delivers the greatest value to Islanders.

"Government must live within its means and be prepared to make difficult choices when the evidence shows that money can be better used elsewhere.

"This Budget marks an important step towards tighter control of spending and strengthening of the Island’s financial resilience. It puts the hospital on a more affordable footing and lays the foundations for the move to greater financial discipline with three-year budgets from 2028."

The budget will be debated later this year.