The LGA has welcomed an additional £500 million for councils to help vulnerable households with rising living costs, but warned that a long-term solution is needed to prevent poverty.
It also flagged the “significant financial pressures” facing councils from high inflation, rising wage and energy costs, and the ongoing costs of responding to the pandemic and supporting recovery.
The £500 million for the locally distributed Household Support Fund was announced by Chancellor Rishi Sunak in his Spring Statement last month, alongside a 5p per litre reduction in fuel duty, a £3,000 increase in the threshold for paying national insurance, and a 1p income tax cut in 2024.
Cllr Shaun Davies, Chair of the LGA’s Resources Board, said: “We are pleased the Government is providing a further £500 million for councils to continue to provide targeted local welfare support to low-income households facing financial hardship.
“As the impact of cost-of-living concerns grow, the mainstream benefits system will need to provide the first line of support for people so that councils and local partners can concentrate their limited resources on helping those who need tailored and additional help.
“With many households likely to be economically vulnerable for some time, councils also want to work with government on an effective long-term solution to preventing poverty and disadvantage that moves away from providing crisis support towards improving life chances.”
Cllr Davies said that 2022/23 is looking “significantly more challenging for councils”, adding: “We remain clear that this continued pressure cannot be met by council tax rises alone. It is crucial that local services have a long-term, sustainable future with certainty for councils over their funding.”
