Although there are no sessions this month, here is a quick post-Christmas bumper slide pack with things that have been going on. Issued covered:
Advancing Welfare Policies and Tackling Economic Pressures: Insights from the Revenues and Benefits Discussion Group
In an evolving economic and social landscape, the Revenues and Benefits Discussion Group slide pack covers key themes and initiatives shaping welfare policies and public sector strategies. Below are the highlights and significant takeaways from the discussions.
Addressing Welfare and Policy Challenges
The focus on welfare reform remains paramount as stakeholders grapple with the complexities of ensuring targeted support to vulnerable populations. A standout initiative is the push for more efficient Pension Credit campaigns. Organisations such as Visionary Network and InBest are offering tools and services, including free data analysis, to help local authorities identify residents who are missing out on entitlements. These campaigns underscore the critical role of data-driven strategies in bridging gaps in benefit take-up.
In parallel, discussions on transitioning from legacy benefits to Universal Credit (UC) highlighted the importance of tailored support. Recent findings reveal that individuals on Income Support and Employment and Support Allowance are most likely to seek assistance during these transitions. Effective communication and early engagement were key factors in ensuring smooth shifts for claimants.
Financial and Economic Realities
The provisional Local Government Finance Settlement for 2025-26 brought mixed reactions. While a funding boost of £700 million, including increases in homelessness prevention and social care grants, was welcomed, concerns about long-term sustainability remain. Increased National Insurance contributions and constrained budgets have left many councils in “survival mode.”
At a macroeconomic level, the Bank of England’s decision to hold interest rates at 4.75% reflects ongoing inflationary pressures. The ripple effects include challenges for businesses, local authorities, and residents navigating rising costs and stagnating economic growth.
Sector-Specific Updates and Initiatives
- Local Audit Office (LAO): The establishment of a single body to oversee English local authority accounts aims to simplify financial reporting and enhance transparency. The LAO’s remit includes adopting best practices from the Redmond Review to restore public trust in local government finances.
- Homelessness Prevention: With a 37% increase in the Homelessness Prevention Grant, stakeholders emphasized the need for structural reforms to address temporary accommodation costs and housing shortages.
- Water Bill Increases: Upcoming rises in water bills, driven by infrastructure investments, pose affordability challenges for households, amplifying the importance of financial support mechanisms.