A £2MILLION ‘Cost of Living’ fund is likely to be reinstated by Dorset Council to help residents struggling to make ends meet.

The fund was initially set up in the last financial year by the former Tory administration at County Hall, but was not renewed by them at budget time.

The Lib Dems, who now have political control, were critical of that decision and are now planning to revive the fund, taking the money from the council's General Fund reserves.

A decision on whether or not to go ahead will be made at next week’s Cabinet meeting, the first of the new administration.

The resolution being discussed on June 11 says the fund will provide a “targeted programme of work to support our most vulnerable residents and to complement and address any gaps in other national and local support programmes.”

A background report with the recommendation says that one factor has been affecting Dorset resident more than anywhere else in the country – the high cost of living relative to earnings – which, says the report, “has been felt in higher rental and mortgage payments, which lead to lower or, in some cases, no disposable income with which to absorb any price increases to fuel, energy bills and food.”

Under the previous programme some of the hardest pressed residents were helped with £150 supermarket vouchers; financial advice; home improvements including help for those with disabilities; energy efficiency grants and a range of community food projects.

Dorset Citizens Advice has told Dorset Council that there is ample evidence of problems continuing in the face of rising costs and prices – with 13,600 Dorset residents asking for help in May and a 10 per cent increase in requests for help in every month since April 2023.

Said the CAB: “Dorset residents are facing mounting personal debt, and more Dorset residents start each month in ‘negative budgets’ mostly due to the rising costs of rents, energy and food. • Dorset residents are struggling to pay their rent or mortgages and increasing ‘no fault evictions’ and losing or are at threat of losing their homes.

“In January 2024, CA supported a record number of residents who were struggling with increased fuel due to cold weather.

“People are continuing to struggle to feed their families.”

Most foodbanks and social supermarket are reporting a continued increase in demand, often exceeding their financial and volunteer capacity to help.