The Cost Of Living Crisis And Maintenance Orders

A cost of living crisis is upon us.

The Jersey Retail Price Index ("JRPI"), the main measure of inflation, was 7.9% higher in June 2022 than it was 12 months before - the highest rate of increase seen since 1992. ¹

The next JRPI is due to be released in October 2022 and further significant increases are expected. Such a hefty rise in inflation is concerning – it is inevitable that people will suffer from a worrying financial squeeze.

One of the immediate issues being caused by this hike in the JRPI is in the context of maintenance orders, whether they be for spousal or child maintenance. When these orders were made, they will have been based on 'need', those needs having been assessed at the time and usually index-linked, so that maintenance payments automatically increase on the annual anniversary of the order at the rate of JRPI in the preceding 12 months. The intention of this index-Iinked increase is to protect the 'buying power' of the recipient from