Low income families in Jersey are “disproportionately impacted” by high grocery prices and could be paying as much as 49% more than their UK counterparts due to the lack of budget supermarkets, a new report has revealed.

The island’s think tank Policy Centre Jersey today published a report on the cost of living in Jersey, highlighting growing public concern and outlining the key drivers behind high prices – particularly in housing, food, and transport. 

The document explained that the cheapest grocery retailers in Jersey can be up to 49% more expensive than in the UK due to lack on budget supermarkets on the island.

However, the report pointed to evidence from the Jersey Competition Regulatory Authority which found that this position does not result from “profiteering” – but rather from the small size of the local market, higher freight and labour costs, and tax differences. 

It said: “The fact remains that Jersey’s special circumstances mean that those who shop at, for example, Waitrose or M&S, are paying 14% more for their food than they would in the UK.

“Low income families could be paying as much as 49% more than their UK counterparts because they do not have access to a Lidl, Aldi, Costco or street markets.

“Low income families are therefore disproportionately impacted by grocery prices in the island.”

The Policy Centre’s report draws on a survey of 1,000 islanders which revealed that  64% of Jersey residents identify the cost of living as the most important local issue, rising to 82% among single parents.

However, the document explained: “While people refer to the cost of living as being a problem, the real issue is the relationship between income and expenditure.”

It notes that average real earnings, which are adjusted for the rate of inflation, have not increased since the beginning of the century.

Earnings in Jersey decreased in real terms from 2020 to 2024, dropping by 3.3% over the four-year period.

Express took a closer look at some of the report’s key figures…

  • The cost of living in Jersey is at least 10% higher than in the UK.
  • House prices in Jersey are on a par with those in London, 50% higher than in the south east of England, and 27% higher than in Guernsey. 
  • Housing was the most important issue for 17-34 age group and significantly more important than for other age groups.
  • Housing costs account for around 30% of household expenditure, and food and non-alcoholic drinks 11%, with a variation from 16% for the lowest income households to 8% for the highest.
  • Groceries in Jersey are on average 14% more expensive than in the UK, but the lack of discount retailers in the island means that low-income households can pay up to 49% more than their UK counterparts.
  • In 2020/21, the average household income before housing costs in Jersey was 51% higher than in the UK.
  • Price levels for consumer goods and services (excluding housing costs, health and education) in Jersey were 9% greater than the UK average.
  • Price levels for food and non-alcoholic drinks were nearly a fifth greater (19%) in Jersey than the UK average.
  • The cost of a rank taxi cab journey in Jersey is among the most expensive in the UK, with a two-mile daytime journey in Jersey costing almost 20% more than the UK national average.