Council Tax Support To Remain Unchanged For Low-Income Isle Of Wight Residents

Isle of Wight residents on low incomes will continue to receive the same level of help with their council tax bills, despite annual increases in the charge.

At a full council meeting on Wednesday (21 January), councillors unanimously agreed to keep the Local Council Tax Support (LCTS) scheme unchanged for the 2026/27 financial year.

The decision followed a public consultation, which received 163 responses, with the majority of respondents saying they felt the current level of support was sufficient.

Under the existing scheme, eligible residents can receive up to a maximum 75 per cent reduction on their council tax bill.

This includes 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 support available is a 25 per cent reduction, for example for a single person earning between £195.01 and £245 per week.

A report presented to councillors noted that ongoing council tax increases have made it more difficult for claimants to meet their bills.

The council also confirmed its Exceptional Hardship Fund, which provides additional help for residents facing extreme financial difficulties, will continue.

Council leader Phil Jordan said council tax support plays an essential role for many households.

“Council tax support plays a vital role in helping residents on the lowest incomes meet their council tax liability,” he said.

“The scheme currently supports thousands of households across the Island and costs the council over £11 million each year.

"Any increase would need to be funded locally and would place further pressure on an already challenging financial position.”

Liberal Democrat leader Councillor Andrew Garratt said the council had already made progress in improving support levels.

“We started this cycle at 65 per cent and have increased support to 75 per cent,” he said. “I would hope everyone would want to see greater support for those in the greatest hardship, but it is right that we are maintaining this level despite the very difficult financial circumstances the council faces.”

Councillor Chris Jarman, leader of the Empowering Islanders group, confirmed that certain payments would continue to be disregarded when calculating eligibility.

“These include veterans’ compensation payments, war pensions and support provided under the Homes for Ukraine scheme,” he said. “All reflect circumstances of war, with the first two recognising care and support for armed forces personnel.”

Independent Socialist councillor Geoff Brodie said he would support the proposal despite wider budget pressures facing the authority.

The unchanged scheme will now remain in place for the 2026/27 financial year.