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

Head of Finance and Accountancy (Deputy S151 Officer)

Chesterfield Borough Council
£72,000 (inclusive of Market Supplement)
In this role, you will provide visible leadership and management across the Finance Service Chesterfield, Derbyshire
Recuriter: Chesterfield Borough Council

Director of Digital, HR & Customer Services

Chesterfield Borough Council
£97,017
Reporting directly to the Deputy Chief Executive, you will lead a diverse directorate, with responsibility for Human Resources Chesterfield, Derbyshire
Recuriter: Chesterfield Borough Council

Support Worker CFS - Family Time South

Essex County Council
£26284.0000 - £33256.0000 per annum
Support Worker CFS - Family Time SouthPermanent, Full Time£26,284 to £33,256 per annumLocation
Recuriter: Essex County Council

Youth Support Worker - Part time

Essex County Council
£25580.0000 - £25919.0000 per annum
Youth Support Worker - Part timePermanent, Part Time£25,580 to £25,919 per annumLocation
Recuriter: Essex County Council

Adults Social Worker - Learning Disability & Autism

Essex County Council
£38487 - £51834 per annum + Flexible Working, Hybrid Working
Please note that visa sponsorship is not available for this role. Applicants must have a current, unrestricted right to work in the UK.We're an adult England, Essex, Basildon
Recuriter: Essex County Council
Linkedin Banner