Agenda item

The Chair invited Rose Doran to introduce the update.

Rose said that the LGA’s key lobbying priority had been around the sufficiency of the MHCLG £500 million hardship fund which was announced in its initial response to Covid-19. She said that an increasing number of councils were reporting significant issues with residents who were vulnerable due to financial and/or food poverty and the LGA had been working with both MHCLG and DEFRA to highlight this.

Rose said that the LGA was now thinking about how low-income and economically vulnerable households could best be supported longer-term through the ‘recovery’ phase. For example, forbearance and debt recovery were likely to become increasingly significant issues for councils in the coming months and there would be an increasing tension between supporting low-income households and the need for councils to recover arrears.

Following Rose’s introduction, members raised the following points:

·       Large increases in rent debt were reported which wouldn’t be covered by Universal Credit.

·       Lack of IT facilities in low-income households was proving a real obstacle for home-schooling.

·       It was suggested that unsecured debt amongst low-income households was going to become a major issue and Credit Unions had limited capacity to help. Rose said that work was planned with Credit Unions about developing more affordable alternatives to high cost lending.

·       Members agreed that the LGA should lobby to keep the temporary increase in Local Housing Allowance rates permanent and possibly to go even higher. Rose said that she had received indications from officials that this was likely to be the case. It was agreed that a letter should come from the Chair to seek confirmation of this.

Decision

Members of the Resources Board noted the update.

Action

Officers to draft letter to the DWP seeking confirmation of a permanent increase in Local Housing Allowance rate.