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.
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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