Families in crisis face funding shortfall, warns LGA
Derren Hayes
Monday, February 24, 2014
Councils may be unable to provide emergency support for families in crisis as a result of government funding changes, local government leaders have warned.
The Local Government Association (LGA) say the government’s decision to scrap the Local Welfare Assistance Fund – worth around £175m annually to local authorities in England and Wales – could mean some hardship schemes run by councils to help families in difficulties will end from April 2015.
Councils use the fund to provide financial assistance to people in crisis situations such as women fleeing domestic violence, families forced to move as a result of the benefit cap and to help offenders resettle in the community following release from prison.
The government says money from the fund will have the ringfence removed and be given directly to local authorities to decide how best to spend.
But the LGA says not all the money will be passed onto local authorities under the 2015/16 local government funding settlement.
LGA chairman Sir Merrick Cockell, said: “This fund has been used by councils to provide crucial support to people facing personal crises in their lives, from help paying the rent to putting food on the table. By helping people at an early stage and targeting support at where it is needed most, we have been able to give essential support in people's time of need and prevent short-term problems escalating.
"It is extremely disappointing that government has removed the funding for this safety net without first honouring its promise to discuss with councils what the consequence of such a move might be.
“Local authorities are working hard to support the most vulnerable in society while managing the biggest cuts in living memory to funding for services. For some councils, providing crisis payments to those in need from local service budgets is likely to be a stretch too far.”
A government spokesman said: “Councils will continue to provide support to those in their community who face financial difficulties or who find themselves in unavoidable circumstances.
“In contrast to a centralised grant system that was poorly targeted, councils can now choose how to best support local welfare needs within their areas – what is right for inner London will not be for rural Cumbria.
“The government continues to provide support to local authorities through general funds as part of the government’s commitment to reducing ringfencing and ending top-down Whitehall control.”
The Local Welfare Assistance Fund was introduced in 2013 to replace government-provided crisis loans, with each local authority area allocated money from a £347m two-year pot.
