Local authorities "disproportionate" funding cuts to services

Councils are planning to defy ministers by pushing ahead with plans to cut funding for services supporting vulnerable people by far more than the government has recommended, according to a survey by the National Housing Federation.

The survey found that 73 per cent of providers have been warned by their local authority to expect disproportionate funding cuts to services which provide support, housing and advice to some of the most vulnerable people in their community, such as women fleeing domestic violence and people with mental health problems.

In some circumstances whole services face closure as cash strapped town halls look to make massive savings over the next four years by disproportionately cutting from one budget to fund another.

In the Spending Review, the Chancellor announced that money allocated nationally to Supporting People – which funds services for over a million vulnerable people– would be broadly maintained, with a 12 per cent real terms cut over four years.

However the money is no longer ring fenced and councils can spend it on whatever they want to as it rolled into their general grant from central government. There is no legal duty to support many of the groups traditionally funded by Supporting People – despite their vulnerability. These include some single homeless people, many older people and those with drug and alcohol addictions.

Nottinghamshire council is warning of a 67 per cent cut over the next four years, Somerset has already confirmed an 18 per cent cut next year. Nottingham City Council has proposed a 43 per cent cut from April this year. Hartlepool Council has been consulting on a 30 per cent funding cut from April this year. Cornwall Council has meanwhile confirmed it will reduce its funding by 40 per cent over the next three years.

Ministers have however warned councils about excessive cuts to Supporting People. Questioned at a DCLG select committee, Housing Minister Grant Shapps said “the idea that local authorities should use Supporting People as their front line for reductions is completely against everything that we would expect to see."

And in a letter to local authorities on 22nd December from the Department of Communities and Local Government stated: “Ministers do not, however, expect authorities to respond to reductions in their budgets by passing on disproportionate cuts to other service providers.”

A survey of 136 housing organisations and charities which provide services for some of the most vulnerable people in their community found:

• Nearly three quarters of respondents (73 per cent) said local authorities they work in had already indicated cuts of greater than 12 per cent. 41 per cent of respondents expected cuts over 20 per cent in their area, and 18 per cent of respondents expecting cuts over 30 per cent.
• 60 per cent of respondents said their organisation would be forced to reduce the level of service they offered
• The top five client groups housing associations thought were most at risk of cuts were: Single homeless people, older people in need of support, people with drug and alcohol problems, ex-offenders, people with mental health problems.
• 42 per cent of respondents saying one or more area they work in were yet to announce cuts.

National Housing Federation chief executive David Orr said: “Local authorities are facing significant cuts to their budgets and face the inevitable task of deciding where savings can be made.

“But what we are beginning to see is that services which provide a lifeline to thousands of vulnerable people are being hit disproportionately by councils – with the first to declare their hands indicating they intend to cut back their funding by up to 67 per cent.

“Raiding these budgets to pay for other spending priorities runs contrary to what ministers want, what the public wants and most importantly what the vulnerable who rely upon them want to see happen.

“Councils must now be completely transparent with their local communities and account for where they plan to spend their Supporting People cash.”