PM Gonsalves announces Cost of Living and other financial support for locals

A specific type of financial assistance is on the way for 3000 persons who have been deemed as living in dire financial straits.

Dubbed the COLA Special (cost-of-living allowance), this initiative by the government is designed to ease the financial strain of 3000 “means-tested, particularly vulnerable households”.

It is one of the 17 initiatives announced by Prime Minister, Dr Ralph Gonsalves, during his Independence Day message at Victoria Park last Sunday, October 27, 2024 before a packed crowd inside the park and scores more outside, unable to get in.

“…for the three-month period, December 2024 to February 2025, a special cost-of-living allowance (COLA Special)- not Coca Cola, just COLA Special, of $175 monthly is to be rolled out…”, Dr Gonsalves said during his 45th Independence Anniversary message which was delivered under the theme, “45 years of togetherness, prosperity, and perseverance.”

He said the COLA Special is costing the government $1.575 million ($525,000 monthly), and the programme will be executed by the Ministry of National Mobilization.

“The government will evaluate this programme after the initial roll-out with a view to a possible continuation further into 2025,” Gonsalves said at the evening event, the first such parade since the night of Independence in 1979.

Other financial assistance packages were also announced by the Prime Minister who spoke to the attentive audience, the largest crowd seen at one of these celebrations in a long time.

Gonsalves noted that certain time-bound fiscal reliefs which were made last year will roll over for another year to December 31, 2025, in respect of the five percent monthly supplementary, non-taxable salary addition for 750 persons- nurses, nursing assistants, and nursing aides.

This will cost over $2 million annually, and the Prime Minister said the 2025 Budget is expected to see further upward adjustments for all categories of central government employees.

“There will continue to be, indefinitely, the VAT relief for domestic consumers of electricity up to 250 units (kilowatt hours) per month, and the duty-free concession on cement will be extended, indefinitely,” Gonsalves announced, while stressing that he is aiming to make cement in SVG the most affordable in the OECS.

Also mentioned in his address was education assistance to students, a package valued at over EC$30 million. The Prime Minister said that prior to the Unity Labour Party (ULP) administration taking the reigns of government, only four fully-funded national scholarships were awarded.

“You see what I tell you? We have gone much better and we are looking good.”

He said also that the 368 recipients of economically-disadvantaged student loans from the National Student Loan Company who have graduated from university and are current with their loan payments, will receive, at government’s expense, relief from one month’s payment on their student loan for December, 2024.

“I want them to spend a little better Christmas in post Beryl. This will cost the government appropriately $200,000. This relief is additional to the reduction of the interest rate on the student loans to 4.5 percent annually, as was announced last year,” Gonsalves pointed out, while adding that second-year students at the Community College, and teachers at all primary, and secondary schools (2500 people), owned or assisted by the government, will receive brand-new laptops early in 2025 at a cost of over EC$3 million.

Persons affected by Hurricane Beryl were not left out, and it was announced that for the three month period- October 1 to December 31, 2024, the government will pay income support of $600 per month to categories of persons affected by the hurricane.

Expected to receive the money are unemployed heads of households, owners of micro-enterprises, farmers, farm workers, fishers and their crew, and workers laid off in the tourism sector.

“The Ministry of National Mobilization is currently culling the lists to ensure that there is no double-dipping. The recipients will be paid by bank cards,” Gonsalves made clear.

“The October and November payments will be made in November, and the December payment before Christmas 2024. This income support for the three months is expected to cost the government over $15 million.”

He noted that government has already provided production support of $2 million to 2200 plantain and banana farmers, and $250,000 to 130 arrowroot farmers.

“Significant support in cash and kind have already been provided too, for the households and students affected by Beryl. The $600 income support monthly will continue for a period in 2025, to be announced in Budget 2025,” the Prime Minister promised.