There is ‘calm before the storm’ as the impact of the Welfare Reform Act threatens to grow, a report has found.
Auditors Grant Thornton said there were a number of ‘warning signs’ that the full impact of reform had yet to be felt.
Signs highlighted by the report included a rise in homelessness, a lack of evidence that the bedroom tax had brought about a significant movement to small properties and the so far slow take up of Government funding for discretionary housing payments.
Head of local government at Grant Thornton, Paul Dossett, said: ‘The early indication is that the impact of reform felt by local authorities and partners has not been as great as expected.
‘However, this could be the calm before the storm.
‘Some worrying signs are emerging, particularly around rising rental arrears, homelessness and reliance on food banks, which may be linked to the reforms and could put further pressure on authorities as the reforms are phased in.’
