Local Welfare Provision Consultation 2019

Overview

Birmingham City Council is undertaking a consultation on a proposal to reduce the available budget for Local Welfare Provision payments from April 2019.

The Council’s Benefit Service administers the Local Welfare Provision payments that enable the Council to provide financial support for vulnerable people in the city who find themselves in financial crisis. 

There are 2 types of payment made from this Provision:

• Crisis payments are made to citizens to meet their needs for subsistence in terms of essential food and/or clothing.
• Community Support Grants are paid to citizens to meet their immediate needs for essential furniture or white goods to sustain their housing needs and to gain greater independence within the community.

From April 2013, central government passed responsibility for Local Welfare Provision to Local Authorities.  The Government provided funding for the two years up to 31^st March 2015.  The Council found the resources to continue the scheme from April 2015 to March 2019. However, the scale of the cuts imposed by central government on the Council and the demands to protect children  and adult social care for the most vulnerable means that the Council will not have the resources to continue to fund the same level of Provision beyond March 2019.

The LWP funds white goods for citizens who are moving into a tenancy perhaps for the first time to help with the setting up of a home and around 80% of the fund is spent in this area. In addition the LWP also funds emergency assistance in the form of a payment card where citizens can use this to access food,clothing etc. to meet their immediate short term needs. Currently 20% of the fund is utilised for this purpose.

It is proposed that the Local Welfare Provision for ‘white goods’ and furniture is reduced. The proposal will leave the crisis element for food and utilities at its current level. The Service has managed the previous reduction by working with voluntary suppliers of ‘white goods’ and furniture to supply goods in the first instance and will continue to signpost to those organisations. White goods from voluntary suppliers are all subject to a charge and some also charge a reduced amount for furniture.

The available fund will reduce from £783k to £479k for 2019/20 and further reduce to £323k for 2020/21.   

Why your views matter

Due to the scale of demand we have had for this Provision and the needs we have been addressing we believe that it is important to consult specifically and in greater detail on this proposal.

You can let us know your views by completing this questionnaire