An exceptional hardship fund has been scrapped to make way for a higher discount on council tax, hitting some of the most vulnerable Isle of Wight residents in the pocket.
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.
Battled with ‘heads and hearts’
Last night (Wednesday), 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 five per cent and scrapping the hardship fund to pay for the rise.
Meanwhile, 14 councillors opposed the plan, while one abstained.
What it means
As a result of last night’s vote, from April 2024, some residents (9,947 people in 2022/23) will pay 25 per cent of their council tax bill, rather than 30 per cent, with the IW council paying the rest.
It means the cash-strapped local authority will now have to find an extra £366,000 to fund the five per cent 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.
Successful claims equated to £45,000
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 per cent of eligible bills, to prevent cuts to other council services.
Mosdell: Claiming is difficult, degrading and means a loss of dignity
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 per cent) 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.
Garratt: Pledged to find a way to replace the lost fund
Councillor Andrew Garratt said Councillor 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.
Stephens: IWC must find £3m of savings in 2024/25
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 £3m of savings in 2024/25.
He voted against the proposal.
Jones-Evans: Against agreeing ‘policy made on the hoof’
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’.
This article is from the BBC’s LDRS (Local Democracy Reporter Service) scheme, which News OnTheWight is taking part in. Some alterations and additions may have been made by OnTheWight. Ed
