William Eichler 24 September 2021

Local welfare assistance in London increased 368% during pandemic

Local welfare assistance in London increased 368% during pandemic image

London boroughs dramatically increased local welfare assistance for residents during the pandemic and warn that the financial pressure on the capital’s residents is only likely to worsen over the next few months.

Research by the cross-party group London Councils has revealed that applications to boroughs’ local welfare assistance schemes during the first lockdown were 190% higher than the same period in 2019, with one borough seeing a 329% increase in applications across 2020/21.

Councils run local welfare assistance schemes and distribute other forms of welfare support to residents at immediate risk of financial crisis – the aim being to prevent problems from spiralling and households becoming homeless.

Overall, London boroughs made almost 40,000 local welfare assistance payments awards in 2020/21, with the average payment being £242. Boroughs increased their local welfare assistance budgets from £2m to a total value of £9.6m – a rise of 368%.

London Councils’ research also found that boroughs were struggling to find sufficient funds for discretionary housing payments, which are distributed by councils to help residents meet housing costs.

The Government provided a record £179.5m of national funding in 2020/21 for discretionary housing payments.

However, according to London Councils, the capital’s allocation of £43.7m was not sufficient to meet demand. The group found that boroughs in the capital saw a 5% overspend on these payments, compared to a 6% underspend in the rest of England and Wales.

The average discretionary housing payment made by London boroughs was significantly larger in 2020/21 at £1,600 compared to £1,170 in 2019/20.

According to the group, this suggests Londoners are facing larger shortfalls when trying to meet their housing costs.

Cllr Muhammed Butt, London Councils’ executive member for Welfare, Empowerment and Inclusion, said: ‘Since the start of the COVID-19 pandemic we’ve seen a dramatic spike in Londoners approaching their local borough for help. Many of these residents have lost jobs and are at severe risk of spiralling debt and homelessness.

‘Councils play an important role in propping up the welfare safety net, but there’s only so much we can do with the limited resources the Government provides us. Ministers should use the Spending Review to restore funding for local welfare assistance and boost boroughs’ ability to support those in need.’

SIGN UP
For your free daily news bulletin
Highways jobs

Senior/Principal Regeneration Officer

Fareham Borough Council
£45,465 - £55,379
Our town centre regeneration is moving from planning to delivery, and we're looking for someone who wants to help make regeneration happen. Fareham, Hampshire
Recuriter: Fareham Borough Council

Service Manager for the Multi Agency Child Protection Team

Nottingham City Council
£58,602 - £62,109
You will play a pivotal role in leading and shaping child protection practice across Nottingham Nottingham, Nottinghamshire, Hybrid
Recuriter: Nottingham City Council

Head of Regulated Services

Nottingham City Council
£75,323 - £84,396
You will provide strategic leadership for our Residential Children’s Homes, our Fostering Services, and our, Permanence service Nottingham, Nottinghamshire, Hybrid
Recuriter: Nottingham City Council

Head of Children's & Education Services Transformation

Nottingham City Council
£75,323 - £84,396
You will play a critical leadership role in driving Nottingham's ambition to deliver outstanding services for children, young people and families. Nottingham, Nottinghamshire, Hybrid
Recuriter: Nottingham City Council

Assistant Head of Legal Services (Regeneration & Property)

Royal Borough of Greenwich
PO9 - £71,181 - £74,802
The role will involve legal advice and support to committees, members and senior officers, and taking any appropriate measures London (Greater)
Recuriter: Royal Borough of Greenwich
Linkedin Banner