Agenda item

[Report of the Director for Customers, Transformation and Resources. To be introduced by the Cabinet Member for Transformation and Public Realm Investment.]

Cabinet are requested to agree the policy for Local Welfare Assistance Fund.

The Cabinet Member for Transformation and Public Realm Investment introduced the report which sought approval for the introduction of a Local Welfare Assistance Scheme. The scheme would be included as part of a suite of support available in the borough focusing on residents who face short-term financial hardship.

The Leader commented that the implementation of the Scheme would be an achievement that the Council could be proud of.

In response to questions from Councillor Palmer, the Cabinet Member advised that:

• It was important that approval be given to the Director of Customers, Transformation and Resources in consultation with the Cabinet Member for Transformation and Public Realm Investment to make minor amendments to the scheme as it would allow for the Council to be agile in its’ response to demand. All decisions within the scheme would be subject to financial checks.
• Work was being carried out to identify buffer points to allow for an equal spread of funding across the year. This was not the first discretionary fund that had been implemented by the Council, and experience could be drawn from the implementation of these.

RESOLVED

1.         To agree the approach to introducing a Local Welfare Assistance Scheme set out in this report, which will be known as the Haringey Support Fund.

2.         To agree the principles and proposed scope of the scheme as set out in paragraphs 6.4 to 6.7.

3.         To agree that approval of the final operational detail of the scheme and final public policy document – which will follow the approach agreed in recommendation 3.1 b) – should be delegated to the Director of Customers, Transformation and Resources in consultation with the Cabinet Member for Transformation and Public Realm Investment.

4.         To note that the Council will monitor the design and impact of the scheme and regularly review our approach, including through a review at the end of the first year of funding. Minor amendments to the detail of the scheme, where required, should be delegated to the Director of Customers, Transformation and Resources in consultation with the Cabinet Member for Transformation and Public Realm Investment.

Reasons for decision

Ongoing structural inequalities in the borough have been amplified by the impact of Covid-19. In this precarious environment, the economic realities mean that many residents are more vulnerable than previously to acute financial shocks and are at risk of falling into crisis. Although the Council does not hold all the levers to tackle these challenges, and providing social security remains the responsibility of Central Government, it is more important than ever that we find new ways to support our residents.

Although the challenge in Haringey is ongoing, this year, in particular, many residents are likely to face increased pressures due to ongoing high levels of unemployment coupled with the gradual winding down of Central Government support schemes, such as the Coronavirus Job Retention Scheme (CJRS) and the temporary Universal Credit (UC) uplift. Whilst it is not the role of local government to replace these schemes, introducing a local welfare assistance scheme will support our wider efforts to help residents in urgent financial need.

As we respond to these challenges, the primary function of the Haringey Support Fund will be to provide an additional safety net for residents who are facing temporary financial crisis – sitting within and complementing our other support to residents on a low income. An important secondary objective will be to connect residents to support which can help them to find sustainable ways to navigate financial adversity.

This work also supports our overall approach to reducing community inequality, including as set out in our Borough Plan principles and our ‘Recovery and Renewal’ report, which sets out our ambition to support residents in new ways.

Due to the timeframe required to launch this scheme, the full operational detail is being worked up by officers, in consultation with the Cabinet Member for Transformation and Public Realm Investment and with partners in the Voluntary and Community Sector. The Director of Customers, Transformation and Resources will approve the operational detail of the scheme, including the final public policy document – both of which will be based off the principles agreed in this report – in consultation with the Cabinet Member.

As this is a new scheme, which will be launched in the complex environment created by Covid-19, monitoring, and evaluating the impact of our work will be particularly important. It is therefore requested that minor amendments to the scheme, where required, should be delegated to the of Customers, Transformation and Resources in consultation with the Cabinet Member for Transformation and Public Realm Investment.

Alternative options considered.

Divert local welfare assistance funds to alternative support programmes.

There is no statutory requirement to provide hardship support in this format. The money set aside in the Council budget could therefore be diverted to other schemes supporting residents on low incomes – such as Council Tax Reduction (CTR). However, the Council believes that in the present economic climate this new scheme will diversify and complement the support we already provide, adding a new flexible support option for residents, and widening our reach. This fits within the strategic goal to support residents in new ways.

Do Nothing

The Council would not take steps to establish a Local Welfare Assistance Scheme to support residents facing financial hardship. There is no statutory requirement to provide this service. Doing nothing would undermine the ability of the Council to deliver its strategies to tackle community inequality. Without an equivalent intervention, we anticipate it would also lead to an increase in residents falling into financial crisis, escalating debt, and destitution.