Tagged: supermarket vouchers.

Newcastle’s most vulnerable families hit when council leaders slash loan support scheme

Thousands of Tyneside’s most vulnerable families will go hungry when a voucher support scheme is scrapped because of austerity cuts, leaders have warned.

A scheme which sees supermarket vouchers given to 2000 families in Newcastle to help feed their children over the school holidays has been axed as the Government slash £40m from the city council’s annual budget.

Under Newcastle City Council’s Crisis Support Scheme, families with children aged five and six, who have had their housing benefit reduced by the bedroom tax and are paying council tax for the first time, received Asda vouchers to help feed their youngsters during the Easter, Christmas and Summer school holidays.

But the council say they are forced to slash the service as the Government roll out their next round of cuts.

Leaders warned that cutting the benefit would lead to an increase in the number of people turning to foodbanks for emergency food parcels.

The announcement comes shortly after a teacher made claims some of his pupils returned to school after holidays “visibly thinner”.

Simon Kennedy, from teacher’s union NASUWT, said:

“It’s easy to point the finger at Newcastle City Council and say it’s their fault but this is the coalition government’s fault.

“This Government are hitting the most vulnerable and least well off families. I don’t think we can blame the council. The reality is when you get millions cut from your budget you have to cut it from somewhere.

“On May 7 people will be given the chance to vote and these are the sort of things people will take into consideration.

“We know people are going hungry and it’s not just over the holidays, it’s week in week out. We know that parents are missing meals to feed their kids.”

 

In April 2013 the Government abolished the Social Fund and asked local authorities to set up replacement schemes for Crisis Loans and Community Care Grants and the council set up the Crisis Support Scheme.

The funding falls under three areas and supports people in crisis, disaster or emergency, provides council tax assistance and did provide meals vouchers to schoolchildren in the holidays before it was cut.

In 2013/14 the council spent £214,000 to spend on the crisis support fund, and a further £173,000 in 2014/15. It will spend £116,000 in 2015/16, which includes a £50,000 overspend from the previous year.

In order to manage the reductions the council said they had no choice but to slash the voucher scheme.

This week letters went out to the affected families as they received their final set of vouchers over the Easter holidays.

Deputy leader of the council Joyce McCarty said:

“We are really disappointed this has been left to the local authority to fund.

“The Government have dumped the austerity cuts with local authorities who can’t afford to pick up the pieces and it’s the least well off in the community that are suffering.”

In Easter 2014 families with one child were awarded a £10 voucher, while families with more than one child were given £20.

A further £40 was handed to families with one child in the summer and an extra £60 to families with more than one child.

And at Christmas 2014 the vouchers were increased to £40 with families with one child and £60 for families with more than one child.

Ms McCarty added:

“It will add to the growing problem. It’s the same families who are struggling, it’s those families having to pay the bedroom tax and it’s things like this that tips people over the edge.”

The Department for Communities and Local Government said they would be unable to offer comment in the run up to the general election.

Source – Newcastle Evening Chronicle, 12 Apr 2015

Councils Sit On £67m In Emergency Help For Poor

This article was written by Patrick Butler, George Arnett, Sarah Marsh and Samir Jeraj, for The Guardian on Sunday 20th April 2014

A fledgling scheme to provide emergency help to the poorest in the country is in chaos, with £67m left unspent and record numbers of families being turned away.

Figures released in response to Freedom of Information Act requests indicate that by the end of January councils in England were sitting on £67m of the £136m that had been allocated to local welfare schemes. Half of local authorities had spent less than 40% of their funds.

An analysis by the Guardian shows that under the new local welfare assistance schemes, four in 10 applications for emergency funds are turned down, despite evidence that many applicants have been made penniless by benefits sanctions and delays in processing benefit claims. Under the previous system – the social fund – just two in 10 were. In some parts of the country, as few as one in 10 applicants obtain crisis help.

The schemes were designed to help low-income families in crisis, such as those in danger of becoming homeless or subjected to domestic violence. Charities and MPs have warned that those denied help are turning to food banks and loan sharks.

Gillian Guy, chief executive of Citizens Advice, which offers debt and legal advice, said the emergency financial support system was in chaos. “When the safety net fails, people are left with no way of putting food on the table, paying the rent or keeping the lights on. Confusion over what help is available and who to approach means that people who need support are left high and dry.

“People are in danger of being pushed into the arms of payday lenders and loan sharks by the chaotic emergency support system. Citizens Advice bureaux see people in desperate need of support who have nowhere else to turn when jobcentres and the local council don’t give out support.”

Under the new system, emergency funds are no longer ringfenced, meaning that councils can divert unspent cash to other budgets. Local welfare assistance schemes were created a year ago in 150 English authorities, alongside national schemes in Wales and Scotland, following the abolition of the social fund.

Most schemes do not offer cash or loans, but support in kind, such as food parcels and supermarket vouchers. The social fund provided loans repayable against future benefit payments – typically about £50 – and larger capital grants to destitute families who needed help to furnish flats or replace broken domestic appliances.

Despite charities reporting that demand for help has rocketed as a result of economic hardship and welfare cuts, some councils spent more money setting up and administering their welfare schemes than they gave to needy applicants.

Councils told the Guardian they had provided less in emergency funding than in the past because there was a lack of public awareness of the new system. Some had failed to advertise their schemes, while others set such tight eligibility criteria that many applicants – typically including low-paid working families, benefit claimants and those deemed to have not lived in their local area for long enough – were turned away.

Simon Danczuk, the Labour MP for Rochdale, who has repeatedly raised the issue of local welfare in parliament, said his constituents frequently reported struggles to get crisis help. Constituents he has helped include:

• A low-wage family with three children, including an 11-month-old baby, who applied for £35 to pay for gas, electricity and baby food to help them until payday. The council scheme initially referred the family to a food bank. After lobbying by Danczuk, they were given £20 for energy costs, but were refused money for baby food.

• A pregnant mother and her partner, who after benefit changes were left with £7 a week for food after rent and council tax. They were told that they could not apply as the scheme was for “genuine emergencies” such as fires and flood.

In each case Danczuk believes the families would have qualified for emergency support under the social fund. “Central and local government are pushing people into the hands of payday loan companies and food banks. They have in effect privatised the lender of last resort,” he said.

A spokesman for the Department for Work and Pensions, which funds local welfare schemes run by 150 local authorities across England, said: “In contrast to a centralised grant system that was poorly targeted, councils can now choose how best to support those most in need. It is for local councils to decide how they spend their budgets.”

But a Conservative council leader has called on the government to reinstate local welfare assistance funding, calling it a “cut too far”. Louise Goldsmith, leader of West Sussex county council, said the proposed cut would leave many low income families without vital support when they were going through a “tough patch in their lives”.

A briefing note prepared by the council found that 43% of 5,582 individuals and families helped by the local welfare fund to the end of February had applied because they had been left penniless by benefit sanctions and delays.

The Local Government Association has called upon the ministers to reverse the cut, and it is understood a number of councils and welfare charities are preparing to seek a judicial review of the government’s decision to cut local welfare assistance funding in April 2015.

Many councils are using part of their welfare assistance allocation to provide financial support for local food banks, which provide penniless applicants with charity food parcels.

Lady Stowell, a local government minister, told the House of Lords in January that local authorities were “doing a good job of supporting people in times of crisis and are doing it without using all the funding that has been provided so far from DWP”.

But Centrepoint, the homelessness charity said that local welfare assistance underspending meant many homeless youngsters could not get vital support when they moved from hostels into independent living. “Councils need to start using these funds to address urgent need now and ensure that young people have access to it,” said Seyi Obakin, Centrepoint’s chief executive.

Two local authorities – Labour-run Nottinghamshire county council and Tory-run Oxfordshire – have scrapped local welfare assistance altogether and plan to divert the money into social care services..

Conservative-run Herefordshire  county council had spent less than £5,000 of its annual £377,000 allocation by the end of December last year, equivalent to 1% of its local welfare budget.It said its spending reflected low demand for crisis help, a claim disputed by Hereford Citizens Advice and Hereford food bank, which said they had been inundated with requests.

Labour-run Islington council had spent 80% of its emergency funds budget by the end of December last year and had spent all its emergency funds by April. It said it had encouraged its frontline staff to refer individuals to its local welfare scheme to ensure they got crisis help and assistance with any underlying problems, such as debt.

Local authorities are anticipating further problems over local welfare in 2015 when the DWP scraps funding for the schemes. Councils, charities and MPs have called on the government to restore and ringfence the crisis support allocation.

Councils say that in some cases they have refused emergency help because benefit claimants have been wrongly referred to local authority welfare schemes by jobcentres. Some councils have refused to accept applications from those who ought to have been offered a short-term benefit advance from their local jobcentre.

Scotland and Wales have their own welfare assistance schemes and these have higher applicant success rates than in England. In Northern Ireland, which still has the social fund, 70% of applicants received help.

Source – Welfare News Service  20 April 2014

http://welfarenewsservice.com/councils-sit-on-67m-in-emergency-help-for-poor/