Government finds extra £74m for crisis support schemes

As part of the 2015/16 funding settlement for councils the government was looking to cut funding for local welfare assistance schemes, which aim to prevent temporary financial crises escalating into long-term poverty, from £172m to £129.6m.

But following protests from the children’s sector an extra £74m has been made available to “help councils as they develop localised arrangements” and support their most vulnerable families, the government has said in its response to a consultation on the plans.

4Children chief executive Anne Longfield said: “We welcome the government’s confirmation that they have reversed their initial decision and provided local authorities with £74m funding for local welfare assistance, which helps vulnerable families who have suddenly slipped into crisis.  

“It is vital that local and national government put early intervention at the heart of their approaches. If we can prevent families from reaching crisis point, we not only benefit them but the wider economy too."

But she warned that despite this extra money councils continue to face “increasingly tough choices” due to wider council cuts.

Matthew Reed, chief executive of The Children’s Society, also backed this latest funding announcement.

He said: “The big winners from this announcement will be the hundreds of thousands of children living in poverty who will now be given a better chance of a fair start in life.

“At a time of increasing child poverty, high levels of problem debt, and cuts to support for families, it is more important than ever that dedicated funding is available to help get struggling families back on their feet and provide an emergency lifeline to prevent them from spiralling into debt and outright destitution.

"It is crucial that councils now keep in place local schemes and make sure they are easy to access, open to all families who face an emergency and are advertised properly so those who need them know about them.”

However, while the government has said it expects councils to use the money to set up local welfare assistance schemes, which succeeded the Social Fund in 2013, the money is not ringfenced.