The Government should make the Household Support Fund permanent and more flexible so councils can help residents in the greatest need, the LGA has said.
The call came in response to the Resolution Foundation’s annual ‘Living Standards Outlook’ report, which shows that a typical family is set to be £2,100 worse off over two years because of the rising cost of living.
Typical disposable incomes for working-age family households are on track to fall by 3 per cent in this financial year, and by 4 per cent in the year to April 2024, with only the very richest households seeing their incomes rise, according to new research published by the think tank.
Cllr Pete Marland, Chair of the LGA’s Resources Board, said protecting the most vulnerable from the rising cost of living is a critical priority for councils and that targeted government support is helping, but this crisis will not end overnight.
“Councils are urging the Government to make the Household Support Fund it has provided to councils permanent,” he said.
“This would also allow councils to crucially shift their focus from short-term crisis support to investing in preventative services that build financial capability and resilience, such as: welfare benefit entitlement checks; debt advice; and employment, health, and housing support.
“Councils continue to try to fund their own local crisis support schemes, but this is increasingly difficult amid ongoing funding pressures. Permanent local welfare funding would help councils ensure no one is left behind.”