NEARLY 10,000 HOUSEHOLDS WILL PAY LESS COUNCIL TAX THANKS TO CHANGES TO SUPPORT SCHEME

An exceptional hardship fund has been scrapped to make way for a higher discount on council tax, which is good news for nearly 10,000 households who will now pay 5% less towards their Council Tax bill. It has been claimed by supporters of the change that the hardship fund application process is ‘difficult and degrading’, and that redesignating the cash will mean greater all-round support – but the scrapping of the scheme will hit some of the most vulnerable residents in the pocket. On Wednesday night, councillors battled with ‘their heads and their hearts’ as they considered the future of the Local Council Tax Support (LCTS) scheme. The scheme helps Islanders on low incomes and those in receipt of certain benefits, by providing a discount on council tax bills. At a vote, 22 councillors supported increasing the amount paid out by the LCTS by 5% and scrapping the hardship fund to pay for the rise. Meanwhile, 14 councillors opposed the plan, while 1 abstained. As a result of the vote, from April 2024, some residents (9,947 people in 2022/23) will pay 25% of their council tax bill, rather than 30%, with the Isle of Wight Council paying the rest. It means the cash-strapped local authority will now have to find an extra £366,000 to fund the 5% difference, in the 2024/5 budget. The exceptional hardship fund further helps those eligible for the LCTS scheme, who are facing additional ‘genuine hardship’.  The discretionary fund pays even more of an individual’s council tax. There have already been 150 successful claims in 2023/24, totaling £44,300. A further 121 claims were not approved for the extra hardship payment. Leading cabinet members had recommended the LCTS scheme continue to cover 70% of eligible bills, to prevent cuts to other council services. However, Councillor Clare Mosdell, leader of the Conservative group, proposed scrapping the exceptional hardship fund — instead using the money to ensure a higher percentage (75%) is covered by the LCTS payment. She said filling in the forms for the hardship fund is difficult, degrading and means a loss of dignity, arguing it is hard to successfully claim cash from the ‘hardly ever used’ pot. Councillor Andrew Garratt said Cllr Mosdell’s proposal had presented him with a challenge, saying the money could be found by putting a premium on second home owners instead, and he pledged to try to find a way to replace the lost fund. He voted in favour of the change. Councillor Ian Stephens, cabinet member for finance, said County Hall must consider its overall financial position, adding it had already been hit with unavoidable funding pressures and must find £3million of savings in 2024/25. He voted against the proposal. Speaking of her shock at the proposal, Councillor Julie Jones-Evans said council costs have been going ‘up and up and up’ while funding has been going ‘down and down and down’ and warned against agreeing ‘policy made on the hoof’.