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

Targeted Early Help Practitioner

Wakefield Council
Grade 7 - Grade 8, 18.5 hours, Temporary
We are looking for an enthusiastic individual to work part of a multidisciplinary team to support the delivery of the Targeted Early Help Wakefield, West Yorkshire
Recuriter: Wakefield Council

Apprentice - Business & Administration

Essex County Council
Up to £14567.00 per annum
Apprentice - Business & AdministrationFixed Term, Full Time£14,567 per annumLocation
Recuriter: Essex County Council

Youth Worker (North/West)

Oxfordshire County Council
£31537 - £34434
About Us We believe in relationships that make a difference and creating the space for young people to feel seen, heard, and supported. If you’re passionate about supporting young people, this is where you belong. The Targeted Youth Support Service (TY Oxfordshire
Recuriter: Oxfordshire County Council

Engagement and Customer Support Officer

Derbyshire County Council
Grade 9 £32,347 - £34,317 per annum
Are you passionate about delivering exceptional customer service and creating engaging communications? Derbyshire
Recuriter: Derbyshire County Council

Engagement and Customer Support Manager

Derbyshire County Council
Grade 11 £39,865 - £43,270 per annum
Are you passionate about delivering outstanding customer service and building strong stakeholder relationships? Derbyshire
Recuriter: Derbyshire County Council
Linkedin Banner