A household expenditure survey covering over 2,000 respondents found that real incomes in Guernsey have declined significantly when adjusted for inflation. The survey, conducted for 2023/24, revealed that while gross annual income stood at £77,619—representing a 12% increase in nominal terms compared to 2018/19—this figure represents a 12% decrease when accounting for inflation over the same period.
Average household expenditure was recorded at £67,411 annually for 2023/24, which was 6% lower in real terms than five years earlier, despite appearing 19% higher in nominal figures. Once income tax, social insurance contributions, and alternative funding sources such as savings or loans were incorporated into calculations, the estimated average money available for household expenditure was £69,067 per year.
The survey revealed concerning financial conditions for many islanders, with 41% of respondents indicating they had either no savings or savings amounting to less than one month’s worth of gross income. Housing costs represented a substantial burden, with those in the affordable rental or partial ownership market spending approximately 33% of gross income on housing-related expenses. Private market renters averaged 22% of gross income devoted to housing, while owners with mortgages spent an average of 19%.
Helen Walton, head of the Data and Analysis Service, characterized the findings as valuable for maintaining accuracy in inflation measurements and ensuring figures reflect actual household spending patterns across the island. She noted the data would serve to inform future policy decisions and support market research initiatives.
Article Attribution | Read More at Article Source
Article summary produced by Claude AI