Many of Dorset’s most vulnerable residents receiving local authority care, at home or in residential units, will see their income squeezed this year by rising inflation.

Their guaranteed minimum income cap, after council care costs, is expected to rise by 3 per cent – at a time when inflation could reach 10 per cent.

It's against this backdrop that the Dorset Echo and our sister titles have launched the new Your Money Matters campaign to help readers save money.

The minimum income guarantee, the money they are left with, should be enough to cover living costs including food, clothes, utility bills, contents insurance and other personal expenses.

Dorset Council’s Cabinet heard that the authority sets the increase at the rate set nationally, although it is free to increase it further.

But lead councillor for adult social care, Cllr Jane Somper, said that to put the rate up beyond the Government suggested rate would “pose a set of risks” for the council.

A report to the Cabinet said that prior to the last financial year the Government rates had not increased for five years, effectively reducing the value of the guarantee by price inflation over that time.

Cabinet members voted unanimously not to increase the rate beyond the 3% suggested by Government – although it will monitor formal and informal complaints as a means of judging whether the rate is sufficient.

The resolution also agreed that should any further increases be announced by Government it would have to be funded by local savings in the adult social care directorate.

Weymouth Green councillor Brian Heatley said he worried the issue was being considered in isolation at a time of fast-rising inflation.

He said Dorset Council has set its own budget on an assumption of a 2 per cent inflation rise, now way below the 8-10% inflation being predicted by the Bank of England.

“The conclusion may be that we have little hope of helping our most vulnerable,” he said.

Marshwood Vale Conservative Simon Christopher described the position as “disappointing and lamentable” and urged council leader Cllr Spencer Flower to lobby for changes at the coming Local Government Association conference and with MPs and Ministers.

The meeting heard that despite the concerns social workers and others working with elderly resident receiving care did have the means to help those in real hardship, either directly, or through other agencies.