I beg to move,
That leave be given to bring in a Bill to require the Government to undertake a review of the adequacy of local welfare assistance schemes provided by local authorities.
This Bill would require local councils to publicise their local welfare assistance schemes and account for how they have spent the money allocated to them. It would require the Government to provide support and guidance to councils on best practice, eligibility criteria and scheme design, and would review the impact of the pandemic on the sufficiency of schemes.
Local authorities, as we all know, play a key role in providing a local welfare safety net, and they have made a superhuman effort in recent months during the pandemic to make this a success. They are well placed for this role; they already have existing financial relationships with their residents, such as through council tax collection, and they have a wealth of data about those residents. Combined with other forms of financial support that they provide through council tax reduction schemes and discretionary housing payments, a well-funded and administrated local welfare assistance scheme means that local authorities can act as a first point of call for individuals in need. By running an effective scheme, they can also act as a central hub for signposting to voluntary sector organisations that can offer additional support.
We must note the scale of need at the moment, even before the pandemic. With so many in often unfurnished private rented properties, it is no wonder that more than 1 million people are lacking a cooker, fridge freezer or washing machine. It is also no wonder that so many find themselves turning to food banks and other forms of emergency food aid. Many of those being helped are people experiencing sudden, unexpected and traumatic change in their daily lives; some are fleeing domestic violence, whereas there are others whose financial precariousness sees them quickly lose both job and accommodation, with many finding themselves in communities with high levels of transience and insecure tenancies.
Let us think about some of the underlying statistics: low-income families have an average of only £95 in savings; and some 40% of those aged 20 to 29 have no savings at all. These sorts of situations reinforce the so-called “poverty premium”—that is a phrase I dislike—which is increasingly prevalent. For example, where someone has no cooker it may mean that they spend more on costly takeaway meals if they are “time poor”. Having no washing machine might mean someone paying £4 down the launderette, and £3 for the dryer, rather than 25p for an average home wash. Local welfare assistance schemes, importantly, offer timely support, but it should be a wider challenge to policymakers to find ways to incentivise small or even tiny amounts of saving to improve financial resilience over time.
The Government have recognised the value of local support for families and individuals facing a financial crisis during the covid-19 pandemic. The £63 million emergency assistance grant over the summer and the £170 million covid winter grant scheme, which ends in the spring, have enabled local authorities to scale up their offer in response to increased demand. The short-term funding has been a welcome boost to council provision, although the effectiveness of delivery has probably been dependent, to some degree, on the existing mechanisms authorities had in place prior to covid-19; there is some evidence in respect of local authorities that already had a robust LWAS in place. There has already been a commitment to review this, and the Government need to make sure they publish their emergency assistance grant review as soon as possible, to make a helpful contribution to understanding the effectiveness of local welfare provision as a whole.