William Eichler 19 February 2019

Local welfare cuts leave millions facing ‘financial exclusion’

Local authority leaders have warned that millions of low-income households are ‘facing debt and financial exclusion’ due to Whitehall cuts.

The Government stopped funding local welfare schemes, which supported people through temporary crises, in 2015. This cut is against a wider background of austerity which has seen councils lose 60p out of every £1.

A new report from the Local Government Association (LGA) calls on the Government to consider fully funding local support schemes to help councils help people overcome short-term problems.

Entitled Reshaping Financial Support, this report also urges the Government to better evaluate how local financial support can reduce the demand for other high-cost public services, such as health, housing and social care.

‘In spite of financial challenges, many councils are still finding ways to provide direct and indirect financial support to those in financial difficulty or at risk of financial exclusion because of the vital role it plays in preventing crisis and improving people’s lives,’ said Cllr Richard Watts, chair of the LGA’s Resources Board.

‘It also reduces the need for more costly interventions, for example, housing, health and social care services. This is becoming increasingly difficult and huge concerns remain about the future of local welfare funding into the next decade.’

‘The reasons households get into debt or financial difficulty can be complex. Debt is often a symptom of wider problems, as well as a cause,’ Cllr Watts continued.

‘Councils need the resources and capacity to disentangle and address complex issues, focus on prevention and bring services together. Unless local support is effective there is a risk that we entrench poverty and its associated problems.’

SIGN UP
For your free daily news bulletin
Highways jobs

Revenues and Benefits Administration Officer

West Northamptonshire Council
£26914 - £27781
The Revenues and Benefits Administration Officer at West Northamptonshire Council provides essential administrative support across the Revenues and Benefits team. The role involves managing emails, indexing documents, raising orders and supporting financi Northampton
Recuriter: West Northamptonshire Council

Strategic Commissioning Manager (Markets Team Manager)

The Royal Borough of Kensington & Chelsea Council
Negotiable
Drive real change in your community - shape the future of careDrive real change in your community - shape the future of careAt the Royal Borough of Ke England, London, City of London
Recuriter: The Royal Borough of Kensington & Chelsea Council

Social Worker - Family Finding, Adoption Mid Essex

Essex County Council
£34902.0000 - £50081.0000 per annum
Social Worker - Family Finding, Adoption Mid EssexPermanent, Full Time£34,902 to £50,081 per annum Location
Recuriter: Essex County Council

Sheltered Housing Officer

The Royal Borough of Kensington & Chelsea Council
£33291 - £34291 per annum
Support residents to live independently in safe, welcoming homes - making every day easier, safer and more connected.Support residents to live indepen England, London, City of London
Recuriter: The Royal Borough of Kensington & Chelsea Council

Team Leader

Durham County Council
Grade 8 £32,597 - £36,363
Salary
Recuriter: Durham County Council
Linkedin Banner