Thousands of Orkney residents can get £200 cost of living help

A tanker is pictured departing Orkney, which has benefitted from oil and gas industry money

Most households in Orkney are to be given a special cost of living payment of £200.

Councillors have approved the bonus, which four out of five local households will be eligible to receive.

It will come from the council's £200m Special Reserve Fund, which has been built up using money linked to oil production at the Flotta oil terminal since it was commissioned in 1976.

The payments could inject up to £1.7m into the pockets of 8,550 islanders.

It is aimed at helping households facing high energy bills and the cost of living crisis.

Those on benefits such as free school meals will get it automatically.

Others will be able to apply for it in the new year.

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Councillors voted in favour of doubling the recommended £100 for each qualifying household to £200.

The £200 can go to every household which is at or below the Scottish government's Low Income threshold.

Council leader James Stockan said: "There are families across our community already facing extremely challenging financial circumstances as costs rise for daily necessities such as food, energy costs and transport.

"The mood of the council was clear among many today - it's vital that we use our reserves to provide some financial support to local people."

The reserve is known locally as the "oil fund".

It already contributes between £6m and £8m to Orkney's public services each year.

This is aimed at easing some of the financial pressure on the cost of providing community resources like libraries, swimming pools and rural transport.

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You can find BBC 5 Live's Big Green Money Show with Deborah Meaden and Felicity Hannah on BBC Sounds.