Premier Wayne Panton has announced plans to assist homeowners with electricity costs this summer and give pay bumps to civil servants as the islands continue to feel the pinch of rising fuel prices.
Speaking in Parliament Friday, Panton said government is bringing several initiatives to assist people with the continuing increase in the cost of living, one of which will be temporary relief in July, August and September to offset high utility bills.
“The PACT government has been in discussions with the main utility providers, or obtaining information from those that can assist in identifying those in need, and will be setting aside an amount in the region of $5 million to help families across the three islands with the increased electricity costs resulting from the increase in fuel costs from July, August, September… the hottest months of the year,” he said.
He said these months are when electricity consumption is normally at its highest.
The assistance, Panton said, will be for residential customers only and will be capped at consumption of up to 2,000kwh per month.
He said government will be finalising the details with the two utilities companies and rolling out a more detailed announcement the week of 20 June.
The planned programme will help some 22,000 households across all three islands during the hottest months of the year, he said.
His announcement follows a motion on the rising cost of living brought by Opposition Leader Roy McTaggart on Thursday night in Parliament as a matter of urgent national importance.
McTaggart had questioned government’s plan to address the rising cost of living and provide “meaningful relief” for Caymanians impacted by the spike in fuel prices.
The Opposition leader outlined recommendations which he said could assist in offering much needed support, such as a reduction on import duties for fuel through December, extensions of the pension holiday and the tourism stipend.
He also called for a Cost of Living Allowance for civil servants.
Panton said the increase in cost of living keeps him up at night.
“We have been looking at this for months,” he said.
Pay increase for civil servants
In his statement Friday, Panton announced that his government will provide relief for civil servants in the form of three monthly honorariums of $150 per month to help the civil service fend off higher utility costs over the summer months.
The payments start this month, he said, adding “it will only be paid to non-executive staff on grades E and below”.
He also announced that the civil service will receive a 2% cost of living adjustment or COLA, “which will provide a sustained salary increase”, starting in September.
Further to this, Panton said qualifying employees will, by way of progression, receive one increment – roughly valued at 2% of pay, starting in December.
“In total, Mr. Speaker by the end of the year, the civil service will see a 4.5% increase this year, comprising a 2% COLA and the remainder in the progression and three months of honorariums came to help offset rising electricity bills over the summer,” he said.
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