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

Director of Legal & Governance (Monitoring Officer)

Reading Borough Council
Up to £112k
You’ll provide overall strategic direction and professional leadership to our Legal and Democratic Services team Redbridge, London (Greater)
Recuriter: Reading Borough Council

Director of Digital & IT (CDIO)

Reading Borough Council
Up to £122k inc. market supplement
You will establish a clear and ambitious digital strategy, bringing together technology, data, information governance and service transformation Redbridge, London (Greater)
Recuriter: Reading Borough Council

Lunchtime Supervisor

Durham County Council
£25,614 pro rata
Lunchtime Supervisor required to start as soon as possible.    We are seeking to appoint a Lunchtime Supervisor to join our Belmont family team. This Durham
Recuriter: Durham County Council

SEND Participation Engagement Officer

The Royal Borough of Kensington & Chelsea Council
£40,404
You’ll also represent young people’s perspectives at service level meetings and champion robust safeguarding practices London (Greater)
Recuriter: The Royal Borough of Kensington & Chelsea Council

Social Worker, Young People with Disabilities (16 - 25)

Essex County Council
£36124.0000 - £51834.0000 per annum
Social Worker, Young People with Disabilities (16 - 25) mid TeamPermanent, Full Time£36,124.00 to £51,834.00 Per Annum Location
Recuriter: Essex County Council
Linkedin Banner