More than 11,000 Islanders are expected to lose around £1,000 per year in additional Universal Credit payments, as national Covid-19 support measures come to an end.
The Government has been paying out an extra £20 per week in Universal Credit during the pandemic.
This week, claimants get their final payments before Universal Credit reverts to its pre-pandemic level.
The move has been widely criticised, including by an Isle of Wight charity boss, who has previously warned that one in seven Islanders of working age will be affected.
A Government spokesperson said, “We’ve always been clear that the uplift to Universal Credit and the furlough scheme were temporary."
Chief officer of Citizens Advice Isle of Wight, Paul Savill, is among those who have been campaigning to keep it, calling it a 'critical cash boost'.
The most recent figures from the Department for Work and Pensions show there were 11,822 people claiming Universal Credit on the Isle of Wight in July, according to PA's Joanna Morris.
Of those, 57 per cent were not in work.
In September, as previously reported by the County Press, Mr Savill said: "Keeping the increase is the single best way to promote a strong, fair recovery.
"£20 extra per week doesn’t just help our clients keep food on the table, it is a critical cash boost for communities that need it most.
"Taking it away will hit many Islanders."
A Government spokesperson said: “Universal Credit and the furlough scheme were... designed to help claimants through the economic shock and financial disruption of the toughest stages of the pandemic, and they have done so."
Universal Credit now reverts back to its pre-Covid levels, and the Government says it will focus on its Plan for Jobs, which aims to support people back into work and help those already working to progress.
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