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

Lead Social Worker WMF2939e

Westmorland and Furness Council
£47,181 to £48,226
We have an exciting opportunity for the role of Lead Social Worker in the Learning Disability, Transition and Autism Team Barrow in Furness, Cumbria
Recuriter: Westmorland and Furness Council

Streetworks Compliance Officer WMF2942e

Westmorland and Furness Council
£36,363.00 - £37,280.00
The Streetworks Compliance Officer role within the Highways Service plays a vital part in managing and overseeing streetworks Kendal, Cumbria
Recuriter: Westmorland and Furness Council

Family Hub Practitioner - WMF2923e

Westmorland and Furness Council
£32,061 - £32,597
An exciting opportunity has arisen for a Family Hub Practitioner in the Best Start Family Hubs Cumbria / Various
Recuriter: Westmorland and Furness Council

Support Officer

Durham County Council
Grade 4 £25,583 - £26,824 pro rata
We have an exciting opportunity for a part time temporary 24 month contract Support Officer to join our dedicated team within Business Services. WH Durham
Recuriter: Durham County Council

Class Teacher

Durham County Council
£37,101- £45,352
KS2 Class Teacher (Maternity Cover)  This is a maternity cover post and will continue until the substantive post holder returns. The successful candid Peterlee
Recuriter: Durham County Council
Linkedin Banner