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

Assistant Director for Adult Social Care Operations (Neighbourhoods)

Royal Borough of Greenwich
Grade D £99,219 - £110,712
As a borough we are committed to providing outstanding care and support to enable our residents to lead healthy, fulfilling and independent lives. Greenwich, London (Greater)
Recuriter: Royal Borough of Greenwich

You Choose Key Worker

North Yorkshire Council
£34,434 - £38,220
Are you passionate about helping young people realise their potential? Scarborough, North Yorkshire
Recuriter: North Yorkshire Council

Monitoring and Compliance Officer

Durham County Council
Grade 9 £35,412 - £39,152
Are you looking for an opportunity to play a key role in the planning process?   We are seeking a self-motivated individual with excellent stakeholder Durham
Recuriter: Durham County Council

Apprentice Joiner

Durham County Council
£15,434 per annum (£8.00ph) NMW
Earn.  Learn.  Qualify. Are you looking for an opportunity to gain valuable experience, earn a salary, and achieve a recognised qualification at the s Durham
Recuriter: Durham County Council

Recovery Worker

Durham County Council
Grade 7 - £30,024 – £33,699 per annum (Pay award pending).
Do you want to make a real difference to the lives of people experiencing hoarding and self-neglect behaviours?   As an Agile Recovery Worker within o Durham
Recuriter: Durham County Council
Linkedin Banner