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

Senior/Principal Regeneration Officer

Fareham Borough Council
£45,465 - £55,379
Our town centre regeneration is moving from planning to delivery, and we're looking for someone who wants to help make regeneration happen. Fareham, Hampshire
Recuriter: Fareham Borough Council

Supporting Family Time Worker

Durham County Council
Grade 6 £29,071 - £32,046 pro rata to hours worked
We are pleased to offer an exciting opportunity to recruit Sessional Supporting Family Time Workers to join our dedicated team. As a seven-day-a-week Durham
Recuriter: Durham County Council

School Business Manager

Durham County Council
£ 39,481- £43,149
Permanent Contract, Full Time 37 hours per week Term Time Only Required to start 1/12/2026 (Or sooner if possible).   Required from December 2026 (Or Durham
Recuriter: Durham County Council

Nursery Teaching Assistant

Durham County Council
£26,016 - £26,847 pro rata
Required from 2 November 2026 to 16 July 2027.  15 hour per week, Mon - Fri 8.45am-11.45am, term time only plus 2 weeks. The Governors of Wolsingham Durham
Recuriter: Durham County Council

Clerical Officer

Durham County Council
£25,614- £26,016 (Pro Rata)
Permanent contract- Part Time- 27.5 hours per week (9
Recuriter: Durham County Council
Linkedin Banner