Laura Sharman Monday, May 18, 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

Admission Appeals Support Officer

Wakefield Council
Grade 5 SCP 8 £26,824 - SCP 11 £28,142
Are you passionate about making a difference to our citizens and the district that they reside in? Wakefield, West Yorkshire
Recuriter: Wakefield Council

Advanced Social Work Practitioner

Wakefield Council
Grade 12 SCP 40 £51,356 - SCP 43 £54,495
We are seeking an experienced and motivated Advanced Practitioner Social Worker (APSW) Wakefield, West Yorkshire
Recuriter: Wakefield Council

Youth Worker x 2

Wakefield Council
£12,790.00 - £12,959.50 JNC 5-6
The Early Intervention and Prevention Service work with many partners in Wakefield, as part of Wakefield Families Together. Wakefield, West Yorkshire
Recuriter: Wakefield Council

Cleaner

North Yorkshire Council
£13.28 per hour
Are you looking for a cleaning role with great benefits? Please note this role is Term Time Only plus 2 weeks. Selby, North Yorkshire
Recuriter: North Yorkshire Council

Business Development Manager

North Yorkshire Council
£42,839 - £47,181 per annum
NYES is a leader in delivering high-quality traded services predominantly into the Education sector. Northallerton, North Yorkshire
Recuriter: North Yorkshire Council
Linkedin Banner