Answer: Central government is abolishing the current benefit scheme and reducing the grant paid to local authorities by 10 per cent. For the Isle of Wight, if we were to just continue with the current arrangements for the council tax benefit scheme, there would be a shortfall in funding of about £1.9 million. Local councils have to decide on a replacement scheme for their residents by 31 January 2013. Central government has stated that the existing welfare system is unsustainable and changes are needed to make it affordable in the future. In its emergency budget statement on 22 June 2010 and the comprehensive spending review statement published 20 October 2010, the government announced a package of reforms to change the system. In line with the government’s objective to ‘make work pay’, the changes to council tax benefit will also support positive work incentives to help get the unemployed back into work.