Government funding cuts to local authority welfare provision will leave struggling families starving and at risk of eviction, councils leaders will warn today.
Government funding for local welfare assistance schemes is to be scrapped by the Communities Minister Eric Pickles, removing £347 million in emergency aid for the very poorest in our society.
The funding is used by local authorities to help aid struggling families in their hour of need to purchase food, fuel, rent, clothing, or replacing crucial home appliances such as a freezer or cooker – among other uses. Some of those who will be affected by the change are benefit claimants, who may have been hit by draconian sanctions or delayed payments.
The Local Government Association (LGA) is calling on the government to rethink their position, warning that councils will not be in a financial position to fill the funding gap.
LGA research has found that three-quarters of local councils would be forced to cut local welfare support, or scale back the provision. 15% said they would have to end it completely.
Local welfare assistance schemes replaced crisis loans in 2013. But only a year into the new scheme the government now wishes to scrap central funding; piling unimaginable financial pressure upon local authorities, who have already seen general funding slashed as part of the government’s austerity drive.
Cllr Claire Kober, chair of the Local Government Association’s Resources Board, told the Daily Mirror:
“This fund has been used by councils to provide crucial support to people facing personal crises in their lives, from help paying the rent to putting food on the table.
“We think the Government has made the wrong decision to remove the funding for this safety net and it was misjudged to have done so.
“Thousands of people have been helped through local welfare schemes, which have been far more effective at getting support to those most in need than the Government crisis loans scheme which it replaced.
“If government pulls the plug on funding from April, many local authorities will be unable to afford to make up the difference at a time when we are tackling the biggest cuts to council funding in living memory.”
Citizens Advice Chief Executive, Gillian Guy, said:
“People in crisis would be left stranded by loss of Government support. Even with these important schemes, far too many people are unable to get basics like food, fuel or clothes. Citizens Advice has dealt with more than 25,000 enquiries about local financial assistance in the past year.
“Emergency financial help schemes are a vital part of our state safety net. Acting fast to prevent people in dire financial straits from facing homelessness or health problems is not only the right thing to do for the individuals themselves, but will save councils and Whitehall money further down the line.
“Many councils are good at quickly delivering help to people who have nowhere else to turn. Government should continue to back these lifelines by putting in place long-term programmes which are properly funded and based on the first-hand insight of councils and local charities.”
A government spokesperson said: “This Government has given councils more control because they understand their residents’ welfare needs best. We are now consulting on how funding should be provided for 2015/16.”
Source – Welfare News Service, 06 Oct 2014
Why are the mainstream media so keen to make you think falling inflation means your wages will rise?
There is absolutely no indication that this will happen.
If you are lucky, and the drop in inflation (to 1.7 per cent) affects things that make a difference to the pound in your pocket, like fuel prices, groceries and utility bills, then their prices are now outstripping your ability to pay for them at a slightly slower rate. Big deal.
The reports all say that private sector wages are on the way up – but this includes the salaries of fatcat company bosses along with the lowest-paid office cleaners.
FTSE-100 bosses all received more pay by January 8 than average workers earn in a year. Their…
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This article was written by Patrick Butler, social policy editor, for theguardian.com on Wednesday 26th March 2014
Low income families hit by welfare reforms are running up personal debt at the rate of £52 a week to cope with the rising cost of living, with many saying they have no idea if they will be able to pay it back, according to the latest instalment of a poverty research project.
The project found that the average household debt stood at just under £3,000, up by 29% since October, equivalent to £670. Families were typically spending £34 a week repaying debts, from an average income among those surveyed of £176 a week.
Almost half of the participants in the survey, all of whom have been affected by welfare reforms such as the bedroom tax, report that they have no money left to live on each week once rent, food and bills are paid for.
The findings emerged in the third of six planned reports by a group of housing associations, which are tracking how families living in social housing in the north-west of England are coping with cuts to their income as a result of welfare changes and recession. The Real Life Reform project examines in detail the finances, views and behaviours of a group of up to 100 households.
Andy Williams, director of neighbourhood services at Liverpool Housing Trust and chair of the Real Life Reform steering group, said: “Householders are falling into more debt, including some taking money from loan sharks, and it’s a real concern that people are having to borrow to cope with the cost of everyday living.
“In our first report in September, people said they’d resist falling further into debt, yet just six months later this picture has emerged.
“Nearly eight out of 10 people in the study owe money. With an underlying average debt of £2,943, some may never pay this off given that they have, on average, as little as £3 left at the end of each day for food.”
The survey found that the number of households in debt was up four percentage points since the autumn. Over half of families said they did not know how long it would take them to repay the debt or that they would never be able to repay it. Nearly one in seven households had debts that would take more than four years to pay back.
One participant told the project: “I have just taken out a new loan from a loan shark for Christmas. It will never go down but it just about keeps my head above water.”
The report said that poorer families were increasingly reliant on debt to make ends meet. “The consequences of weekly repayments, which have more than doubled since the start of this study, alongside increasing costs in all areas, is really placing financial strain and hardship on our households.”
Household food spending by Real Life Reform participants, which had dipped to an average £2.10 a day in October rose to £3.08 in January, an increase attributed to bigger-than-usual grocery shopping bills over the Christmas holidays.
Fuel spending had gone up by 8% since the last survey was carried out in October while household fuel bills had risen by an additional £7 a week since the summer. Participants were spending an average of £141 a month on energy, compared with the UK average of £106, in part because many were on expensive payments meters charging 27p per kilowatt hour compared to 17p for those not on meters.
Source – Welfare News Service, 26 March 2014