Council to launch cost-of-living support schemes

Orkney Islands Council is to launch two financial support schemes for local households to help them meet the challenges of the cost-of-living crisis.

A third scheme will assist Third Sector organisations in the county struggling with rising costs.

Details of the schemes were agreed at Monday’s meeting of the Council's Policy and Resources Committee and ratified by Full Council on Wednesday.

Councillors voted in favour of doubling the recommended £100 for each qualifying household, to £200.

The first scheme - the Low Income Scheme - would see households who are already in receipt of certain benefits or entitlements receive support, with the second scheme for households who are not eligible for benefits but are on a low income and need assistance.

Both schemes will launch in the New Year and would see awards of £200 for each eligible household. It's expected that up to around 8,550 households across Orkney could benefit, at a total potential cost of £1,710,000 if there were to be full uptake.

Those who receive the payment under the first scheme will not be eligible to apply for the second scheme.

The schemes will be in addition to those already in place from the UK and Scottish Government and will be funded from the Council's Strategic Reserve Fund.

The Islands Cost Crisis Emergency Fund, a funding pot of £305,000 received from the Scottish Government, will be used to support Third Sector organisations with the impact of the higher electricity costs.

The report to today's committee also provided details on a Cost-of-Living Task Force established by The Orkney Partnership which will continue to explore support mechanisms and the Money Matters Project - supported through the Scottish Government’s Local Authority Covid Economic Recovery (LACER) - which will bolster support for helping people to maximise their income through benefit entitlement checks and assistance with money management.

James Stockan is Leader of Orkney Islands Council. He said: “There are families across our community already facing extremely challenging financial circumstances as costs rise for daily necessities such as food, energy costs and transport. The mood of the Council was clear among many today - it’s vital that we use our reserves to provide some financial support to local people. These schemes provide us with the vehicle by which we can do that.

"This is not a problem that the Council can fix on its own and our Third Sector partners are a key ally in our battle against the cost-of-living crisis.  Without them Orkney can't continue to provide much needed advice, support and listening ears to some of most vulnerable families - and it is therefore vital that we do what we can to assist them too.”

Financial support for the local business community is also being developed, with options to be presented to the next meeting of the Policy and Resources Committee.

Households eligible for the Low Income Scheme would be:

• Households receiving Council Tax reduction.
• Households receiving Housing Benefit.
• Parents with Free School Meals and/or Clothing Grant entitlement.
• Recipients of Universal Credit or Pension Credit but no Council Tax reduction /Housing Benefit.

In addition, householders who are under 18 or are care experienced young people, have exemption from Council Tax without a means test but are likely to be on a low income and therefore would be included in this option.

Awards under the second scheme would be based on the Scottish Government's Low Income Thresholds.

Full details are available in the committee report.

Information on how the payment will be distributed and how those who need to apply can access the payment will be available early in the New Year.

More information on local support, including what people can do to help others, is available on our Helping Hand page

Frequently Asked Questions

Who is eligible?

The following households will be paid automatically without the need to apply:

• Households receiving Council Tax reduction.
• Households receiving Housing Benefit.
• Parents with Free School Meals and/or Clothing Grant means tested entitlement.
• Householders who are under 18 or are care experienced young people.

What if I’m getting other benefits not in the list?

Recipients of Universal Credit or Pension Credit will be able to apply using the online application too. Unfortunately we cannot make payments automatically to these households as we don’t deliver these benefits, so we don’t have any information about who receives them.

I work and have never received benefits before – could I be entitled?

Absolutely, depending on your income. It is estimated that 8,550 households in Orkney – out of a total 11,000 – may be eligible. Awards are based on the Scottish Government's Low Income Thresholds. Full details are available in the committee report.

Do I need to apply?

Some people will need to apply but many others won’t.

Those who will receive the payment automatically include those who the Council is aware of – for example through receiving Council Tax reduction, Housing Benefit and Free School Meals/Clothing Grants.

Others who will need to apply are those who do not receive any of the above but receive Universal Credit or Pension Credit, who are under 18 or care experienced young people, or working people who meet the low income threshold.

When can I apply?

The schemes will only open early in 2023. Officers are working on the detail now – the Christmas break means this will continue into January – but it is hoped that anyone who needs to apply will be able to do so from the latter part of January 2023.

How much am I entitled to?

Each eligible household will receive £200.

When will I be paid and how?

Payments will take around four weeks to complete and will be made into people’s bank accounts.

How much is this costing the Council?

The total cost is estimated at £1,710,000 if all of the households we think are eligible were to apply. Grants will be funded from the Council's Strategic Reserve Fund.

The Council has a dedicated webpage on local support and what folk can do to help others here - https://www.orkney.gov.uk/a-helping-hand.htm