Stockton Council Scrutiny Review of Financial Inclusion & Welfare Reform

23 January 2014Kath Heathcote – Director of Financial Inclusion & HousingNicola Hall – Director of Communications & Performance

Five Lamps - Integrated Service Portfolio

Economic Development

Employability

To have a positive impact and increase employment

figures in Stockton- on- Tees, by supporting people

to access training and sustainable job opportunities

Enterprise

To have a positive impact and increase employment

figures within the Tees Valley, by supporting

people to start their own businesses.

Youth Services

To provide NEET young people with skills and

qualifications to prepare them for employment.

To provide a range of evening and weekend

activities for young people to raise their confidence

and aspiration.

Financial Inclusion & Housing

To provide affordable credit and financial support to

financially excluded individuals across the North

East, enabling them to move away from their

reliance on unaffordable or illegal credit.

To reduce the number of long term empty properties

Financial Inclusion• Personal loans

– 15,000 loans to financially excluded individuals– APR 49.9% - 89.9%– 7 day turnaround– 42% of the UK CDFI lending by loan volume– Responsible lending

• Debt Advice– First stage debt advice– Capacity Builders– Mybnk

• Energy Debt Advice– Warm Homes Healthy People– Big Energy Savings Network

Welfare Assistance

• Abolition of the DWP discretionary Crisis Loan and Community Care Grant elements

• Local Authorities have commissioned new Welfare Assistance schemes• Five Lamps have been successful in securing contracts to deliver services for

three local authorities, in varying capacities, which in turn has provided the organisation with invaluable data including emerging themes and key trends.– Back on Track (Stockton Council)– HAND (Durham Council)– NETs (Northumberland Council)

Back on Track: Aims

Crisis SupportThis may be awarded when there is an immediate need for items or services

such as food, fuel payments, baby consumables, clothing or emergency travel.

Settlement SupportFor those applicants who find themselves in a period of transition or

resettlement, such as moving back into the community after a stay in supported or unsettled accommodation and can be assisted with the provision of items

including white goods, furniture and flooring etc.

Back on Track – Progress to date

Comparison with other schemes

Comparison with other schemes

Level of Demand – Key FindingsThe anticipated floodgates did not open on 1st April 2013 Figures produced by DWP were not comparable to the way Local Authorities set up and administered their funds and therefore like for like spend cannot justifiably be compared

“Social Fund” cultureSome argue that the decrease in number of awards from the DWP scheme is owing to the scheme being administered more robustly and the fact that needs are met by means other than a cash payment.

Additional factors to consider, notably a lack of awareness of schemes

Level of Demand – Key FindingsCommon themes presented by applicants submitting eligible applications include;

Crisis/Emergency Support•Lost or stolen wallet/purse•Poor budgeting skills•On-going debt issues•Ongoing benefit issues including sanctions, appeals, rapid reclaims etc.

Settlement/Transitional Support•Issues with private landlords•Family breakdown•Fleeing domestic violence•Release from short/long term hospital care/prison•Unable to continue with maintenance and upkeep of exiting residence

Back on Track: Reasons for customers not being eligible for support

Back on Track - Signposting

Back on Track - Awards

The future of social fund as a local serviceChallenges

•Only 6 months operational data

•Has impact of welfare reform hit yet?

•Reviewing pilot and criteria

•Gaps in provision – paper submitted to Officers for further discussion

•Anticipated spend v actual

•Links with other discretionary funds

•Funding post March 2015

Concluding thoughts

• Five Lamps due to publish report “Lessons learned & best practice in WA provision” March 14

• Some authorities have found stakeholder consultation events useful in reviewing and amending schemes

• Continuing financial pressures – possibility for shared LA scheme – economies of scale

• Opportunities for WA schemes to be broadened to meet other needs as a consequence of welfare reform