Working age Islanders who claim council tax support may lose around £2 a week from next April – as the council searches to find £7.5 million of savings in its annual budget.
Low income claimants can currently get 80% support for their council tax bills, but under a change proposed this could fall to 70%, or by an average £2.06 a week.
The reduction is one option to go before a meeting of the Full Council on 17th January – but if approved would only affect working age claimants and not pensioners.
The council would also continue to offer its ‘exceptional hardship fund’ to help those in most serious difficulty.
Leader of the Isle of Wight Council, Councillor Dave Stewart has said:
“Since we were elected last May, the council’s Cabinet has been working tirelessly to explore all areas of the council’s finances and how we can deliver the best services we can in the face of some very difficult decisions on savings.
“We are determined to invest wisely in the Island’s future and act prudently to balance the council’s books – but there is no hiding from the fact that we are faced with some tough choices.
“It is with a very heavy heart that we are having to consider this option, but it is important to note that we went out to consultation on local council tax support between August and October last year, and the majority of respondents supported a reduction from 80 per cent to either 75 or 70 per cent.”
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4 years ago local council tax support was fully centrally funded by the government – but since then local council tax payers have increasingly been asked to fund the difference. There has been a £6 million fall in central funding since 2013.
Councillor Stewart added:
“The council has been placed in a very difficult position of providing a scheme to protect low income households while central funding is cut year on year and we are still required to provide support to pensioners as in 2013. It means we are continually needing to review our local council tax support scheme, and balance this alongside support for many other vital services.
“In terms of the council’s overall budget we are currently engaging collaboratively with all opposition groups on the council, to ensure we are open to a wide range of ideas and suggestions.
“We are also consulting widely with Islanders and stakeholders over the coming weeks to ensure we have extensive feedback before we set the annual budget at Full Council on 28 February.”
The report on local council tax support can be found at: https://www.iwight.com/Meetings/committees/mod-council/17-1-18/Paper D.pdf.
If approved, it is estimated the reduction in support from 80% to 70% would reduce the cost of the council tax support scheme by approximately £570,000 (including the police and town and parish council preceptors share) next year.
