Winter energy bill handouts to cost Isle of Man government £5.7m

Two rounds of support payments will go to those on low-income and child benefits

Thousands of people on low-income benefits will start to receive £300 payments from the Manx government next week to pay their energy bills.

Those on child benefit will also get up to £400, with both handouts to be repeated in December.

Treasury Minister Alex Allinson said the £5.7m of support would help the most vulnerable "budget effectively" amid the cost of living crisis.

It follows a similar £2.8m intervention in April when gas bills soared by 58%.

Dr Allinson said the payments were being funded from government reserves and were part of wider measures to protect energy customers over the winter, which included a £26m six-month electricity price freeze.

Winter bills

About 3,500 households on low-income benefits are set to receive the first £300 sum later this month, with the second payment due two months later.

In November, more than 6,000 families on child benefit will be paid up to £400 depending on the size of the household, with the second sum due between late December and early January.

Separate schemes to help pensioners, the long-term sick and the "squeezed middle" who were not receiving benefits but on low to medium incomes were being considered, Dr Allinson said.

The Manx treasury has said on average annual household energy bills on the island will cost £2,840, a split of £840 for electricity following the freeze, and £2,000 for gas.

Following the introduction of an energy price cap in the UK, leaving annual bills there no higher than £2,500 on average.

However, Dr Allinson said comparisons were "difficult" as although prices could be "slightly higher", the standard of living on the island was "significantly better" than in the UK.

He added that the the treasury would respond again if there was further disruption in energy markets, but warned there were limited reserves to draw upon if the government is to deliver "significant investment" in education and health.