Crisis fund scrapped as cabinet puts the weight on councils
If you were a councillor, would you choose to pay for an emergency fund for those hit by sudden problems – or for rubbish collection? That seems to be the choice the Conservatives and Liberal Democrats are putting before councils.
George Osborne has had his way after all, in his bid to end funding for ‘local welfare assistance provision’ – the safety-net fund for people hit by floods, fire, domestic violence or a shortage of food or money.
But the way the decision has been described seems to have wrong-footed even campaigning organisation 38 Degrees.
Rather than continue the £170 million fund with money from central government, council’s are being asked to put money towards a (reduced) fund of £130 million – from their own reduced budgets.
It is therefore inaccurate for 38 Degrees to say “The government has set aside £130m for the emergency fund for people in crisis”. [1] Not only are they asking councils to stump up the money; they’ve left it up to councils whether they use it for that or not. So there’s still no certainty.
The announcement has caused considerable confusion – some think the news is good, some think it is bad. [2]
Already this year councils have had their budgets slashed. In 2015, some local authorities could be forced to cut vital services or have to choose between shutting a library or reducing weekly bin collections. [3]
So we can already look forward to more misery in the New Year, courtesy of – and don’t you forget it – the Conservative Party and the Liberal Democrats.
NOTES:[1] Department for Communities and Local Government: Local Government Finance Settlement 2015-16:
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/389113/Local_Government_Finance_Settlement_2015-16_-_Consultation.pdf[2] The Children’s Society: Preservation of local welfare a welcome relief for families:
http://www.childrenssociety.org.uk/news-and-blogs/press-releases/retention-of-local-welfare-assistance-a-welcome-relief-for-families
Child Poverty Action Group: Child Poverty Action Group criticises local welfare decision:
http://www.cpag.org.uk/content/child-poverty-action-group-criticises-local-welfare-decision[3] Daily Mail: Anger as councils face funding cuts:
http://www.dailymail.co.uk/wires/pa/article-2879071/Councils-face-1-8-cut-funding.html
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I’d suggest amending the title and content of the blog to make it clear that the money has gone, at least in terms of the provisional settlement. Hopkins left open the idea that it could be reinstated in the final settlement in February 2015, although I doubt that it will.
The two press releases you link to disagree; CPAG appear to have understood the situation correctly; the Children’s Society appear not to, or else are putting an absurdly optimistic spin on things.
To be absolutely clear, the funding has gone. The £130m referred to is a nominal amount carved out of councils’ existing funding. The funding has not been cut from £170m to £130m but from £170m to £0.
Having looked at this again, I think the 38 Degrees release (from which this was taken) is extremely optimistic, so I reckon I will change it.
(For those reading after the changes – the original article was written in the believe that the fund had been saved and money would go to councils; it seems that, in fact, councils are being asked to find it from their own – reduced – budgets).