How are people in Guernsey and Jersey managing cost of living?

Authors: John Fernandez

Publisher:

BBC

Published: 7/24/2025

Language:English

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Ema

Good morning norristong_x, and welcome to Goose Pod, exclusively for you. I'm Ema, and today is Sunday, July 27th. We have a topic that hits close to home for many.

Mask

I'm Mask. We're not just discussing numbers on a spreadsheet today; we're talking about survival. The question is: How are people in Guernsey and Jersey actually managing the crushing cost of living? It's a battle being fought in every supermarket aisle and every rental agreement.

Ema

Let's get started with the core of the issue. We're seeing two different pictures on two very close islands. In Jersey, inflation is picking up speed again, at 2.6%, mainly because food prices are climbing. But in Guernsey, inflation is higher, at 3.9%.

Mask

Higher, but slowing. It's a paradox. You'd think that's good news, but the devil is in the details. The driver in Guernsey isn't just a loaf of bread; it's the roof over your head. The cost of housing is the anchor dragging people down. It’s an unsustainable pressure cooker.

Ema

Exactly. To put that in perspective, the average rent for a local market property in Guernsey hit £2,068 a month in the first quarter of this year. That's over 8% higher than just a year ago. It's a staggering figure that affects daily life profoundly.

Mask

Staggering is an understatement; it's systemic failure. While Guernsey's rents are exploding, Jersey's have been stable for six months. A one-bedroom flat there averages £1,300. It's clear where the immediate crisis is most acute. This isn't a market fluctuation; it's a structural break.

Ema

And this has a real, human cost. Take Sarah Aubert, a mother of three in Jersey. She told the BBC she's started skipping meals so her children can eat properly. She mentioned basics like sandwich fillings and even suncream becoming prohibitively expensive. It's a story of sacrifice.

Mask

This isn't just a story; it's an indictment. A mother skipping meals in a supposedly prosperous society is a sign of deep-seated dysfunction. We're failing the most fundamental test of a community: protecting our own. Luxuries are one thing, but food is a right, not a privilege.

Ema

Meanwhile, in Guernsey, the narrative is all about rent. A construction worker, Luke Jackson, put it very bluntly. He blames the high rents on the government's own relocation grants, designed to attract staff. He said, "Locals can't compete. It's got to the point now where we're second-class citizens in our own island."

Mask

He's absolutely right. The government is actively bidding against its own people. They paid out over £4.7 million in these grants last year, a massive jump from £1.4 million in 2018. It's a self-inflicted wound, pouring fuel on a housing fire and then wondering why everyone is getting burned.

Ema

It's a huge dilemma. The government needs to attract key workers, but the policy seems to be having severe unintended consequences for the local population. It's a classic case of one policy decision creating a whole new set of problems for the people it's supposed to serve.

Mask

It's not a dilemma; it's a choice. They chose to prioritize outside hires over the stability of their local community. Now they have a housing crisis and a population that feels betrayed. The goal cannot be to simply fill jobs; it must be to build a sustainable, equitable society. They are failing.

Ema

This situation didn't just appear overnight. There's a long history here. If we look back about 20 years, Jersey was in a similar, if not worse, position. Around the year 2000, its inflation rate hit 4.4%, which was more than double the UK's rate at the time.

Mask

So, history is repeating itself, but with a different flavor. Back then, it was Jersey in the hot seat. The fact that these islands have faced similar inflationary pressures before tells me that the underlying structural issues have never been properly solved. They've just been papered over. What did they learn from it? Apparently, not enough.

Ema

Well, at that time, Guernsey's inflation was only 2.4%, so the roles were reversed. An independent economist was brought in to figure out why Jersey's rate was so much higher. It shows this inter-island disparity is a recurring theme, a constant economic balancing act that they've been managing for decades.

Mask

Managing? Or failing to manage? An "economic balancing act" is a generous term for what looks like lurching from one crisis to another. If they had truly learned from the past, they would have built resilient systems. Instead, they seem to be stuck in a reactive loop, forever chasing problems instead of preventing them.

Ema

And the housing issue, particularly in Guernsey, is a long-term problem. A 2023 report by a consultancy called arc4 noted that systemic unaffordability has been a problem for over two decades. They pointed out that house prices and rents have consistently and significantly outpaced what people are earning. This is a deep, structural crack.

Mask

Two decades! They've been "studying" the problem for twenty years. KPMG did a review before 2018, then arc4 did another one in 2023. This is analysis paralysis. While they're busy commissioning reports, ordinary people are priced out of their homes. This isn't a crack; it's a chasm.

Ema

The arc4 report laid out some stark figures. In 2022, the price-to-income ratio for buying a property was 15.4. And average rent took up over half of a person's earnings. This isn't just about a few expensive properties; it's about the entire market being fundamentally unaffordable for the average islander.

Mask

And this isn't happening in a vacuum. The OECD has been flagging weak investment and rising housing costs across all advanced economies since the financial crisis. The shift to digital assets, supply constraints, planning restrictions—the writing has been on the wall for years. The Channel Islands are not unique; they are just a more concentrated example of a widespread problem.

Ema

That's a very important point. These global trends are hitting the islands hard. The arc4 report also highlighted a critical supply shortage. Between 2012 and 2021, Guernsey was building an average of just 149 new homes a year, while the strategic target is more than double that, at 313.

Mask

So the diagnosis is clear: demand is high, supply is crippled. And what's the response? Decades of reports and a failure to build. The problem isn't a lack of understanding; it's a lack of will. A failure of execution. They know what they need to do, they just aren't doing it.

Ema

The report also pointed to a largely unregulated private rental sector, with tenants having little power to complain about poor standards or unfair deposit practices. It's a multi-faceted problem where supply, quality, and tenant rights are all lagging far behind where they need to be, creating a perfect storm for renters.

Mask

It's not a storm, it's a siege. And the renters are losing. An unregulated market in a high-demand, low-supply environment doesn't create competition; it creates exploitation. The lack of tenant rights isn't an oversight; it's a policy choice that favors landlords over people who need a place to live. It's feudalism with a modern veneer.

Ema

This brings us to the heart of the conflict. The relocation grants in Guernsey are a flashpoint. As Luke Jackson said, locals feel they are being made "second-class citizens." The government is trying to solve one problem—staff shortages—but is arguably making a much bigger one worse: housing affordability for its own people.

Mask

It's a strategic catastrophe. You don't solve a skills gap by detonating a social bomb in your housing market. The conflict is between short-term recruitment goals and long-term community stability. And right now, the community is losing. It's a direct conflict between the government's actions and the people's welfare.

Ema

Then there's the conflict between consumers and businesses. In Jersey, the Consumer Council is actively challenging supermarkets. They're demanding that discounts be genuine and targeted at essential items, not just clearance goods. They feel the big chains aren't doing enough to help people with basic food costs.

Mask

Challenging? They need to be threatening. The council should have regulatory teeth. In a market with limited competition, which is inevitable on an island, you can't just 'ask' for fair prices. You have to demand them, enforce them. This isn't a negotiation; it's a fight for the consumer's wallet, and right now the supermarkets have the upper hand.

Ema

There's also a clear conflict in how the governments are responding. The BBC tried to ask the States of Guernsey what it was doing to help, and they received no response. In contrast, Jersey's government is at least communicating, pointing to a minimum wage increase and rises in income support.

Mask

Silence versus action? I see it as incompetence versus inadequacy. Guernsey's silence is an admission of having no plan. Jersey's actions, while better than nothing, are clearly not enough. We know this because one in five families there are still struggling to make ends meet. The government is applying a band-aid to a gaping wound.

Ema

That's exactly what some politicians in Jersey are saying. Deputy Louise Doublet expressed extreme concern over child poverty levels. She described a grim reality where parents are tag-teaming jobs—one works days, the other works nights—just to get by. They have no family time. It's a huge source of stress.

Mask

This isn't just stress; it's the erosion of the family unit, the very bedrock of society. This is a direct consequence of policy failure. When parents have to work opposite shifts just to survive, you're not just creating economic hardship; you're creating a generation of social problems. The government isn't just failing economically; it's failing socially.

Ema

The impact is cascading through families. We heard from Sarah Aubert skipping meals. In Guernsey, new mother Chantelle Bearder spoke about the difficult balance of living on one wage while on maternity leave. She's constantly weighing what's affordable versus what might end up as food waste, a luxury she can't afford.

Mask

This is the micro-impact of macro-failure. Every day, people are forced to make these impossible calculations. This mental load, this constant anxiety, is a hidden tax on the poor. It drains productivity, it harms mental health, and it stifles any hope for upward mobility. It's a poverty trap in action.

Ema

And the housing costs are having a shocking impact on the islands' reputation. Hospitality worker Sheikh Sakib in Guernsey said his biggest expense is always rent. He's seen three-bedroom flats in Edinburgh for £1,200, while a two-bedroom in Guernsey costs at least £2,000 plus bills. He even said some places in London are cheaper.

Mask

When Guernsey is more expensive than London or Edinburgh, you have fundamentally broken your economic model. The entire value proposition of living on the island is destroyed. You're supposed to trade a bit of convenience for a better quality of life, not for a higher cost of living. Who would choose that? You're not just hurting your citizens; you're killing your brand.

Ema

It also affects newcomers who arrive hoping for a better life. Nausheena Nackwa, who moved to Guernsey from South Africa, noted the shocking increase in food and daycare costs. For her family, without a local support system, these high costs are a serious burden on top of the already astronomical housing prices.

Mask

So the island is becoming hostile to everyone: to the locals who feel like second-class citizens, to the workers who find it more expensive than major European capitals, and to the newcomers who come seeking opportunity but find only financial strain. It's a lose-lose-lose scenario. The picture isn't just grim; it's unsustainable. The system is eating itself.

Ema

So what does the future hold? There are proposed solutions on the table, at least in Guernsey. The arc4 report recommended immediate actions like creating a proper database of housing stock, unlocking permitted building sites, and finally reforming the private rental sector with things like a deposit protection scheme.

Mask

Immediate actions that should have been taken ten years ago. A deposit scheme isn't innovation; it's basic. Unlocking building sites is obvious. This isn't a bold vision for the future; it's a desperate scramble to catch up with the present. They are decades behind where they should be. The future requires radicalism, not remediation.

Ema

Longer-term, they're considering ideas like rent control, pending a review in Jersey, and exploring new housing models like co-housing. Meanwhile, Jersey is moving towards a living wage. These are potential paths forward, but they require political will and time, which are both in short supply for struggling families.

Mask

Time is a luxury they don't have. They need to look at their sister island, Alderney, to see their future if they fail to act. It's becoming poorer, older, and more isolated, with wages 26% lower than Guernsey's. It's a cautionary tale of what happens when you let infrastructure and connectivity crumble. That is the ghost of the Channel Islands' future.

Ema

That's the end of today's discussion. The core issue is the immense financial strain on ordinary people, caught between soaring housing costs and rising food prices. It's a crisis of affordability that touches every aspect of life. Thank you for listening to Goose Pod, norristong_x.

Mask

This isn't just about economics; it's about the social contract. And right now, that contract is broken. The question is whether the leadership has the courage to fix it. See you tomorrow.

## Cost of Living Crisis in Guernsey and Jersey: A Comprehensive Summary This report from **BBC Guernsey political reporter John Fernandez** details how residents in **Guernsey and Jersey** are coping with the rising cost of living. The article highlights the impact of inflation on everyday life, particularly concerning food and housing expenses, and explores the differing economic situations on the two islands. ### Key Findings and Statistics: * **Inflation Rates:** * **Jersey:** Inflation is rising at a faster rate than earlier in the year, currently standing at **2.6%**. * **Guernsey:** Inflation has slowed but remains higher than Jersey, at **3.9%**. * **Food Inflation:** * **Jersey:** A significant driver of inflation is the **4.1% increase in food prices** between the end of March and June. * **Guernsey:** Food prices have increased by **3.9% in the past three months**. While not singled out as the primary driver, it contributes to the overall cost of living. * **Housing Costs and Rental Market:** * **Guernsey:** * Local economists suggest higher rental property costs are a key reason for the disparity in inflation rates between the islands. * **Relocation grants** are blamed by some for the steep increase in rental prices, making it difficult for locals to compete. * **States relocation grants:** £4,757,453 was paid last year to assist staff moving to the island, compared to £1,437,450 in 2018. * **Average local market rents:** £2,068 per month in the first quarter of 2025, representing a **1.5% increase** from the previous quarter, an **8.2% increase** from the first quarter of 2024, and a **51.7% increase** over the past five years. * Residents report rents for a two-bedroom flat being at least **£2,000 plus bills**. * **Jersey:** * Rents have remained **stable for the past six months**. * The average price of a one-bedroom house is **£1,300 per month**. ### Personal Accounts and Concerns: * **Sarah Aubert (Jersey Mother-of-Three):** Is skipping meals to ensure her children eat well due to rising prices of food and suncream. She notes that everyday items like sandwich fillings, snack bars, and cereal are becoming prohibitively expensive, forcing families to cut back on luxuries. * **Luke Jackson (Guernsey Construction Worker):** Feels like a "second-class citizen" in his own island due to high rents, which he attributes to relocation grants that locals cannot compete with. * **Chantelle Bearder (Guernsey New Mother):** Has changed her shopping habits due to increasing prices. Living on a single wage while caring for her daughter, she has to carefully consider affordability versus waste. * **Nausheena Nackwa (Guernsey Resident):** Has observed a noticeable increase in food and daycare costs since moving to Guernsey two years ago. Housing is also a significant concern, especially without a local support system. * **Sheikh Sakib (Guernsey Hospitality Worker):** Identifies rent as his biggest monthly overhead, even comparing it unfavorably to London and Edinburgh prices. * **Family Nursing and Home Care, Brighter Futures, and Jersey Child Care Trust:** Reported to a sub-panel that **one in five families in Jersey are struggling to make ends meet**. * **Deputy Louise Doublet (Jersey):** Expressed extreme concern about child poverty in Jersey, noting the "enormous stress" it causes, forcing parents to work staggered shifts, reducing family time and relaxation. ### Government Responses and Recommendations: * **Guernsey:** The States of Guernsey had not responded to the BBC's inquiry about their plans to assist residents with the cost of living crisis at the time of reporting. * **Jersey:** * **Minister for Social Security, Deputy Lyndsay Feltham:** Acknowledged the impact of the cost of living on families. * **Initiatives:** * Transitioning towards a **living wage**, with the minimum wage increased to **£13** in April. * Income support rates have increased by **8.6% in 2024** and by a further **4% in January**. * **Minister for Treasury and Resources, Deputy Elaine Millar:** Expressed slight concern about rising inflation but noted that numbers remain relatively low compared to recent years. * **Consumer Council (Jersey):** Has requested local supermarkets to offer better discounts on basic food supplies and has pressured them to ensure discounts are genuine and targeted at everyday essentials. ### Notable Risks and Concerns: * The disparity in inflation rates between Guernsey and Jersey, with Guernsey experiencing higher inflation. * The significant increase in rental prices in Guernsey, potentially exacerbated by relocation grants. * The struggle of families to afford basic necessities, leading to difficult choices like skipping meals. * The impact of high living costs on family well-being and child poverty. * The lack of a reported response from the States of Guernsey regarding measures to address the cost of living crisis.

Read original at BBC →

How are islanders coping with the cost of living?John FernandezBBC Guernsey political reporterBBCSarah Aubert says she has noticed the price of food and suncream rising recently"I have three children and it is really hard to support your family at the moment."Jersey mother-of-three Sarah Aubert said she was sometimes skipping meals to make sure her children could eat well because of recent increases in prices.

Prices are continuing to rise in Jersey at a faster rate than earlier this year, with the latest figures showing inflation was 2.6%, while in Guernsey the rate of increase has slowed - but is higher than Jersey, at 3.9%. According to some local economists, the disparity between the islands is partly down to the higher costs of rental properties in Guernsey.

Construction worker Luke Jackson blamed high rents in Guernsey on States relocation grants. He said: "Locals can't compete. It's got to the point now where we're second-class citizens in our own island."Last year, the States paid £4,757,453 to assist staff moving to the island, compared to £1,437,450 in 2018.

Economist and Deputy Andy Sloan agreed that relocation grants had led to a steep increase in rental prices locally. Luke Jackson blamed the recent jump in rental prices on relocation grants from the StatesIn Guernsey, stats from the States showed average local market rents were £2,068 a month in the first quarter of 2025 - 1.

5% higher than the previous quarter; 8.2% higher than the first quarter of 2024 and 51.7% higher than five years ago.In Jersey, rents have remained stable for the past six months, with the average price of a one-bedroom house £1,300 per month, according to the States of Jersey. Food inflationIn Jersey, one of the big drivers of the island's inflation rate is the rate at which the price of food has increased in recent months - 4.

1% between the end of March and June. In Guernsey, food has not been singled out as one of the big drivers behind prices increasing, that is housing costs and tobacco, but the price of food has increased by 3.9% in the past three months. Ms Aubert said: "Suncream in the shops is so expensive; fillings for sandwiches, like pack lunch stuff, it's even like snack bars, and cereal, I would say too it is really expensive."

So it is really hard, but we try and just balance it out now and just take away things that you know we used to have as luxuries."For new mother Chantelle Bearder in Guernsey, it is a similar balancing act.Mother-of-one Chantelle Bearder has changed her shopping habits because of increasing pricesShe said she had taken time off to look after her daughter, which meant her husband was the sole source of income.

She said: "Obviously I'm out of work at the moment, looking after my little one, because work versus childcare is the balance. "There is a lot more to balance when you are living off one wage. There is a lot more I'm having to think about, like what is affordable to buy versus what is then also going in the bin."

The BBC contacted the States of Guernsey on Tuesday to ask what it was doing to assist people with the cost of living crisis locally. So far, there has been no response. In Jersey, Minister for Social Security, Deputy Lyndsay Feltham said she appreciated the impact the cost of living was having on families.

To support people with the cost of living crisis, Feltham said the States was "transitioning towards a living wage, with the first step made in April when the minimum wage increased to £13". She added: "There is also help available through income support, with rates increasing by 8.6% in 2024 and again by 4% this January."

The Minister for Treasury and Resources Deputy Elaine Millar added: "It is a slight concern to see inflation rising once more, but we're thankful that the numbers remain relatively low compared to recent years."'Causing enormous stress'The Family Nursing and Home Care, Brighter Futures and the Jersey Child Care Trust told a sub-panel of the health and social security panel that one in five families were struggling to make ends meet.

Deputy Louise Doublet said she was "extremely concerned" by the levels of child poverty in the island.She said: "It's causing enormous stress to some families with some parents having to tag-team their parenting with one working at night and then switching over and the other working in the daytime."

It's meaning that families don't have time together and they can't relax and be together as a family."Nausheena Nackwa's family have noticed the increasing price of groceries compared to their native South AfricaEvery Tuesday, Bright Beginnings Children Centre in St Sampson's hosts a free stay-and-play session for parents at a loose end as to what to do with their little ones.

New mother Nausheena Nackwa was there with her six-month-old daughter. She said: "We have only been here for two years, but we've seen a noticeable increase in prices. "The price of food has increased, and daycare costs too, which is serious for us as we do not have a support system over here, so we will have to rely on daycare.

"Then, of course, there is the actual housing situation - that is the other real big cost that really gets us."On Guernsey's High Street, the cost of housing came up as one of the biggest concerns for people living on the islandHospitality worker Sheikh Sakib, who recently had his first child in Guernsey, said: "The rental costs are bad here."

On Guernsey's High Street, he said his biggest overhead every month was his rent.He said: "The grocery costs is getting increasing, as well as rent, but the biggest expense is always rent."I have seen some of the places in London cheaper than here. Especially when I went to Edinburgh: I found a three-bedroom flat in the city centre, £1,200."

Carl Walker said he wanted shops to help peopleHe said: "Outside of the city is £700 or £900. "But, in Guernsey, you can see for a two-bedroom flat it needs to be at least £2,000, plus the bills and other things."The Consumer Council, which campaigns for shoppers in Jersey, said it had asked local supermarkets to give better discounts on basic food supplies.

Carl Walker said he wanted shops to help people."We recently met with one of the large supermarkets, we quizzed them about their prices and why some of them move and we also put pressure on them to try and ensure that any discounts that they're offering are not only genuine discounts, but targeted discounts on those everyday essentials," he said.

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