Laura Sharman 18 May 2015

Welfare reforms could hinder innovation warns report

Cuts to welfare funding will put pressure on local authorities to support vulnerable people and deliver efficiency plans, new research is warning.

A report, published by Grant Thornton, finds that many councils are currently plugging the finding gap with temporary measures such as local hardship funding and discretionary housing payment (DHP) allocations. However, it says these schemes are likely to be impacted by future cuts by the Government.

Paul Dossett, head of local government at Grant Thornton UK LLP, said: ‘In general, welfare reform has prompted an impressive response from many local authorities and housing associations and has been a key driver for innovation and improvement. The question is, can they continue to make efficient use of rapidly reducing resources?

‘Our research suggests that without flexibility from Whitehall and further measures, such as devolution of welfare funding, this is unlikely.’

The survey revealed that nearly half of local authorities (47%) said housing benefit is significantly more expensive to administer following welfare reforms, with the majority also seeing a rise in council tax and rent arrears as a result of reforms.

The respondents also said some policies have not been as effective as planned, with less than 10% of residents affected by the bedroom tax moving to a smaller property.

Mr Dossett added: ‘The collective impact of welfare reform on those in need of support is to some degree hidden due to the lack of data on the causal link between welfare reform and poverty. Our research found that only 42% of local authorities track poverty levels to measure the impact of welfare reform.’

The report calls on the Government to devolve funding and powers for welfare administration to local government.

SIGN UP
For your free daily news bulletin
Highways jobs

Educational Psychologist - Main Grade

Essex County Council
£43483.0000 - £63394.0000 per annum
Educational Psychologist - Main GradePermanent, Full TimeSoulbury Psychologists Scale A from 3 to 8 plus SPA opportunityLocation
Recuriter: Essex County Council

Assistant Director of Family Services & Strategic Partnerships

North Northamptonshire Council
£97,632 - £108,033
Creating Brighter Futures – Where Leadership Sparks Magic North Northamptonshire
Recuriter: North Northamptonshire Council

Assistant Director – Education, SEND and Inclusion

North Northamptonshire Council
£97,632 - £108,033
Creating Brighter Futures – Where Leadership Sparks Magic North Northamptonshire
Recuriter: North Northamptonshire Council

Casual Front Of House and Events Assistant

London Borough of Richmond upon Thames and London Borough of Wandsworth
Salary From £14.28- £18.85 Depending on Skills,
Job Title
Recuriter: London Borough of Richmond upon Thames and London Borough of Wandsworth

Contracts Officer

Durham County Council
Grade 7 £30,024 to £33,699 per annum
We are looking for an individual who has excellent customer service skills to join the team for a period of 12 months. WHAT IS INVOLVED? You will be Durham
Recuriter: Durham County Council
Linkedin Banner