Decision details

BACKGROUND AND KEY ISSUES

In November 2020, the Government announced funding for local authorities to support families and communities through the challenges of Covid-19. Since this time, there has been a succession of further schemes intended to extend support to financially vulnerable households. These have included the Winter Support, and Local Authority Covid-19 Support Grants as well as the Household Support Fund.

The current round of Household Support Fund (HSF) is due to close on 31^st March 2024, however at the Spring Budget, the Chancellor announced a further 6-month extension of the scheme.  The council has not yet received details of the funding allocation to the local authority and therefore any approval and subsequent delivery of services outlined in this report is subject to funds being awarded to the council.

The 2023/24 HSF provided support to anyone who met the following criteria:

·       Be a resident in Peterborough

·       Be in receipt of, or in the process of applying for, any means tested benefit (universal credit / income support / child tax benefits) personal independent payment or disability living allowance.

Or

·       Be living in a ‘low-income’ household – if you are a single person earning less than £25,500 per year or if you are living as a couple and earn a combined income of less than £43,400 (includes those living in houses of multiple occupancy)

·       Or experiencing financial hardship (as determined by our staff or trusted partner).

Whilst inflation rates are now falling from their peak, cost of living issues still remain a key problem for many single people and families within Peterborough.  The existing HSF has seen significant demand for support from across multiple community hubs and high demand to access the council’s voucher scheme.  Between 1 April 2024 and 3 January 2024 (latest data) the scheme has delivered the following:

·       9,624 supermarket vouchers issued, totalling £579,420

·       9,004 vouchers for food totalling £545,300

·       620 vouchers for utility costs totalling £34,120

·       68,155 free school meal holiday vouchers issued totalling £1.78m

The council has commissioned over 20 community hubs over the last year to deliver vital support to people within their communities.  Hubs have been highly successful in providing safe spaces where people can visit, discuss their issues and receive essential support and advice.  It is proposed to extend the funding to community hubs during 2024 to allow them to continue their vital work in meeting the needs of local residents.  Subject to funding being confirmed by Government, it is proposed that the following hubs are commissioned to continue delivery.  The amount of funding is to be confirmed and approved by the Executive Director of Place and Economy once the allocation from Government has been received by the council as set out in the recommendations above.

School Holiday Vouchers

It is also proposed to extend the school holiday supermarket voucher scheme for all pupils who are entitled to free school meals.  Approximately 13,500 pupils take advantage of this scheme each school holiday helping the most vulnerable families manage their finances.  Subject to Government funding, the following support is proposed:

Easter holidays -£30 per pupil

May half term - £10 per pupil

Summer holidays - £50 per pupil

Proposed changes to the Household Support Voucher Scheme

The voucher scheme has been administered by Citizens’ Advice Peterborough (CAP) on behalf of the council.  Whilst the scheme has been highly successful and delivered 9,624 vouchers between 1 April 2024 and 3 January 2024, it has also had significant challenges to overcome.  The public demand for vouchers has significantly outstripped the capacity of CAP to deliver and frequently left it unable to promptly deal with enquiries.  This has led to public complaints both to the council and CAP when residents are unable to access the support they need.

In addition, CAP report that its staff and volunteers routinely encounter highly abusive members of the public who attempt to gain additional vouchers or are unhappy when they do not meet the eligibility for the scheme.  This has led to reputational damage for the charity and distracted from its core business as an advice agency. For these reasons, CAP has decided to not continue operating the voucher service for any future scheme.

As the council only received notification of the HSF extension as part of the Spring Budget, and is awaiting confirmation of the funding allocation, it has not been possible to find an alternative provider that will have the capacity to mobilise and deliver support by April 2024.  It is therefore proposed that council officers develop alternative models of support for financially vulnerable households that is in line with Government guidance.

The council recognises that many households may struggle to pay their bills, particularly those on low incomes.  Council tax is one of the largest bills that households face and can place additional pressure on stretched household budgets.  Officers will explore opportunities for the HSF to be used to support qualifying households with their council tax bills.  It is anticipated that support will be offered to households in September 2024.

It is proposed that the council tax support offer, once developed, is delegated for approval to the Executive Director of Place and Economy in consultation with the Cabinet Member for Corporate Governance and Finance and the Executive Director for Corporate Resources.

Details of the future scheme, once approved, will be published on the council’s website and communicated to qualifying households, the media, councillors and partner organisations.

REASON FOR THE RECOMMENDATION

The extension of the Household Support Fund will allow the council to continue to support the most vulnerable households in our community as they continue to manage the cost of living crisis.

The proposals build upon the existing delivery and outline a model for the council to provide direct targeted support through a council tax support scheme to be introduced later in 2024.