Extra Funding to Limit Welfare Cut.
Inverclyde Council is set to increase funding to offset cuts to the Scottish Welfare Fund Grant.
As part of a redistribution of funding from the Scottish Government, Inverclyde is set to see a cut to funding of 7% in the next financial year. In the following year, 2017/18, that’s expected to be cut again by another 7%.
Now, the Council has agreed to boost it by adding extra funding to supplement the Scottish Government allocation for Scottish Welfare Fund by £100,000 in 2016/17 and to increase by a further £150,000 in 2017/18.
Inverclyde Council Leader, and welfare champion, Councillor Stephen McCabe, said: “We have been offered a very tough financial settlement as a council. These cuts to the Scottish Welfare Fund will, if implemented in full, make life difficult for people in our community. We and our partners in the third sector, have already acted to mitigate the full effects of welfare reforms. That is why it is vital that we keep up that good work and step in and provide some additional resource to provide some protection against this cut.”
“The introduction of the numerous welfare reform changes which impact upon the Inverclyde community is well documented. Many of these reforms are still to be fully implemented and their impact felt. This may leave individuals and families with significant changes in their financial circumstances.”
Inverclyde Council is allocated funding from the Scottish Government to make payments to those who apply to the Scottish Welfare Fund which provides a safety net in an emergency or a disaster, when there is an immediate threat to health or safety. The majority of the budget is awarded to families experiencing exceptional pressures and to enable independent living or continued independent living, preventing the need for institutional care.
With increased demand, the annual budget for this year is expected to overspend by 15%.
Councillor McCabe added: “The additional pressures from the introduction of Universal Credit and inadequate funding puts more pressure on the money available to help families and individuals in our area."
Spending currently sits at 85% of the annual budget, three quarters of the way through the year. It is projected that the Scottish Welfare Fund will overspend by up to 15%, but this will be contained within the balance from previous years.
Further funding was approved at the Council’s Policy and Resources Committee to increase the Scottish Welfare Fund budget; to continue advice provision for those most in need; and to support individuals and families to become more financially resilient.
Funding has been agreed to a range of organisations to the value of £558,000 over a two year period until 2018 which will provide a range of services. These include welfare advice services; practical support to families in fuel poverty and taking up new tenancies; improving digital skills and budgeting support to those in need; and piloting the establishment of credit unions in secondary schools to help build financial resilience in young people.
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