Isle of Wight residents on low incomes will continue to receive the same level of council tax support despite annual increases in the property levy.
Full council has unanimously agreed to keep the Local Council Tax Support (LCTS) scheme unchanged for 2026/27, following a recommendation approved at Wednesday’s (21st January) meeting of the Isle of Wight Council.
The decision followed a public consultation which attracted 163 responses, with the majority of respondents saying the current level of support is sufficient.
Under the existing scheme, support is capped at a maximum 75 per cent reduction on council tax bills. Those eligible for the highest level of support include couples with children earning up to £315 per week, single people earning up to £95 per week and single parents with one child earning up to £180 per week.
The lowest level of help available is a 25 per cent reduction, which applies, for example, to a single person earning between £195.01 and £245.00 per week.
A report presented to councillors noted that ongoing annual increases in council tax have made it more difficult for LCTS claimants to meet their bills. Members were also told that the council’s Exceptional Hardship Fund, which offers additional help to those facing severe financial difficulties, will continue.
Council leader Phil Jordan said the scheme plays a crucial role in supporting Islanders on the lowest incomes.
Phil Jordan, Leader of the Council, said:
*“Council tax support plays a vital role in helping residents on the lowest incomes meet their council tax liability. At present, the scheme supports thousands of households across the Island and represents a cost from the council of over £11 million each year.
“Any increase this year in council tax support would need to be funded locally by us and would add further pressure to an already stretched, difficult financial position.”*
Liberal Democrat leader Andrew Garratt said the council had already made significant improvements to the scheme over recent years.
Andrew Garratt, Liberal Democrat Group Leader, added:
*“We are in the fifth year of a four-year term of office… we started this cycle on 65 per cent, we have improved as a council this support level to 75 per cent.
“I would hope there’s no person in this room who would not want to see greater support given to those in the greatest hardship.
“It is right that we have got this council to this level of support that we are still intending to maintain, despite the very, very hard financial circumstances that we have all heard about this evening, that the council faces.”*
Empowering Islanders group leader Chris Jarman told councillors that several forms of income would continue to be excluded when calculating eligibility.
Chris Jarman, Empowering Islanders Group Leader, commented:
*“Those include veterans’ compensation payments, veterans’ war pensions, and support under the Homes for Ukraine scheme, which will also be disregarded.
“All of those reflect circumstances of war, and the first two are care and support for our armed forces personnel.”*
Independent Socialist councillor Geoff Brodie said he would back the proposals despite wider concerns over the council’s finances.
Cllr Brodie told the meeting:
“I’ve heard the message about the £23 million budget shortfall… I will support this paper on this occasion.”
Rather than keep increasing council tax
for households who pay the full amount.
IW Council could raise extra revenue by
charging islandwide permit parking charges
and extra parking fees for dirty Diesel and
Petrol vehicles like most mainland councils
do.
Also install speed cameras and the revenue
raised from fines could go into the pot.
STOP increasing Council tax, enough is enough
no, they should stop wasting money on woke garbage and taxis for school kids and cut taxes
Back in the old days we use to walk or cycle to
scholl, not have Chauffeur services.
No wonder the council are skint
You keep banging on about this and still, no matter how many times you are told, you don’t realise they can’t use any of that money to spend on council services.
It still goes into the POT
It would be interesting to know how many of the
so called island residents on low income
spend loads of money on cigarettes and
booze hence wanting help paying council tax.
Even those who don’t waste their hard earned
cash want help.
Here Here
do you mean, hear hear?
I mean Here Here