A REPORT gives an interesting insight into the high costs of living in one of the Isle of Man's closest competitors.

Research reveals the 'minimum income standard' of living in Guernsey - which, like the Isle of Man is an international finance centre - is between 20 and 30 per cent higher than the UK for working age households and 40 per cent higher for pensioners.

There would no doubt be a lot of interest if such a similar report was carried out in the Isle of Man - both in relation to comparisons with the cost of the living in the UK and also the Channel Islands. 

Guernsey's Department of Social Security and the Housing Department commissioned the research which was undertaken by Loughborough University's Centre for Research in Social Policy.

The minimum income standard (MIS) is the amount that people need in order to reach a minimum, socially accepted standard of living based on what members of the public think and taking expert evidence on issues such as nutrition and home energy consumption.

It is calculated by specifying baskets of goods and services required by different types of household in order to meet these needs and to participate in society.

The first MIS was launched in the UK in 2008.

The report highlights the key areas of differences between the UK and Guernsey MIS.

These include the fact there is a smaller range of low cost shops in Guernsey.

Also costs for the National Health Service in the UK are deducted from taxes and do not appear in net MIS figures - in Guernsey most medical costs are charged directly at point of service.

Domestic fuel is also an issue - the main UK MIS budgets include the costs of mains gas while groups in Guernsey specified that costs should be based on electric storage heating.

In Guernsey this represents a cheaper form of heating than gas but it still costs more than a similar level of heating would in the UK.

Transport also had an impact. The main UK MIS includes costs for public transport and holiday travel within the UK - in Guernsey groups included a second-hand car and some off Island travel.

This creates a wide gap for pensioners who in the UK MIS have very low transport costs because they use free bus passes to meet the majority of their transport needs with a modest amount of money for the occasional taxi.

The report also reveals electricity prices in Guernsey are approximately 20 per cent more than the UK.

The food in the UK MIS is priced at Tescos while the food in the Guernsey MIS was priced at the Co-Op. As a result of this food and drink costs in the Guernsey MIS are - on average - 36 per cent more than the UK.

In terms of clothing and household goods the UK MIS is costed at a wide range of retailers which includes a number of low cost shops, but due to a lack of them in Guernsey higher budgets are required for these items.

The report states: "The fact that Value Added Tax is not applied to these goods, as is the case for many goods in the UK, offsets the additional Guernsey costs - but only to a limited degree, and the Guernsey budgets for this items total, on average, 36 per cent more than in the UK."

The research also looked at social and cultural participation.

The report explains: "The groups agreed that Guernsey residents required, as a minimum, a one week holiday off the Island, for example to the UK.

"In addition budgets for pensioners and working age adults without children include a weekend to a neighbouring island.

"Groups talked of the closeness of the Guernsey community and the benefit of occasional respite from it.

"They also talked of times when it may be necessary to travel off the island at short notice such as to attend a funeral or urgent family business or accompany a relative travelling to the UK for specialist health care.

"Rather than adding separate budgets to meet the cost of such trips, groups agreed that they would be covered by budgets allowed for holidays.

"In terms of cultural participation the budgets include amounts for celebrating Christmas and for birthday presents for friends and family.

"Taking these decisions into account, budgets for social and cultural participation in Guernsey are 45 per cent more for pensioners, six per cent more for working age adults, but approximately the same for families with children compared with the UK MIS."

The research does show that the costs of running a car are less in Guernsey - unlike the UK there is neither a separate vehicle excise duty nor comparable requirement for an MOT test and petrol prices are significantly lower.

Groups suggested that few people on the island did not have cars and there were 'more cars on the island than there were people'.

The report, by Noel Smith, Abigail Davis and Donald Hirsch concludes: "The budgets required by households to meet the minimum income standard for Guernsey, excluding rent and childcare, are higher than in the UK.

"For working age households, both with and without children, the difference is, on average, 26 per cent.

"For pensioners the difference is higher at 44 per cent.

"There are three contributory factors that help explain the difference between the UK and Guernsey MIS budgets: difference in price, difference in need and difference in provision."

What do you think? Do you think a similar report should be carried out for the Isle of Man? Let us know your views by sending them via the comment box below.