London boroughs welfare support provides safety net for struggling residents

Independent research commissioned by London Councils has concluded that councils provide a vital safety net to households in financial crisis and that they should receive long-term government funding for local welfare services.

The research looked at the role played by boroughs’ Local Welfare Assistance (LWA) schemes in helping residents, including in preventing homelessness and was led by analysts at the research firm Policy in Practice and co-funded by the Greater London Authority.

The research found that a range of events could cause financial crisis and lead to an application for welfare assistance, this could include domestic abuse, flooding, redundancy or bereavement. It was found that many applicants had experienced long delays in receiving benefit payments, which suggests that problems in the national benefits system are contributing to the demand for local welfare support.

Generally, all other support routes have been exhausted before residents request help from the council. Applicants reported that their only other options include living without electricity or stopping eating.

It was found that the council rent arrears of LWA recipients decreased significantly compared to an average increase for all low-income households. This suggests that the provision of LWA has a positive impact on housing security and the prevention of homelessness. LWA recipients also reported improved mental health.

The research recommended that central government should re-establish ring-fenced, long-term funding for local authorities’ LWA schemes, as councils are best placed to provide emergency support to residents.

The researchers said that the pandemic and the increase in food and energy prices has highlighted the essential role councils play in supporting residents through times of crisis.

A recent survey by London Councils found that one in four Londoners are struggling to manage financially. The same survey found that 77 per cent of residents believe the cost of living is among the most important issues facing London. This is the highest ever level of concern for any issue recorded on this question in the past decade.

Cllr Claire Holland, London Councils’ Executive Member for Communities, said: “It’s hard to overstate how tough things are for some people at the moment. Huge numbers of Londoners are struggling to make ends meet – and boroughs are doing everything we can to help the most vulnerable escape spiralling financial crisis.

“As this research shows, councils’ local welfare services provide a vital safety net. We’re often our residents’ last hope and a bulwark against homelessness and despair. Boroughs believe the money invested in this support pays real dividends, not only by assisting those in crisis but also through avoiding additional costs to the wider public sector.

“Time and time again councils have proven ourselves invaluable partners to the government when targeting support to those most in need. Re-establishing government funding for local welfare schemes would strengthen our ability to help residents and prevent bad situations turning worse.”

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