This briefing outlines a number of key design principles for maximising the impact of locally delivered financial support, which boroughs may find useful in developing and implementing their Household Support Fund schemes for 2023/24.
This briefing is not intended to be prescriptive but reflects examples of best practice that councils may wish to consider when delivering their Household Support Fund schemes.
Introduction
The economic hardship brought about by Covid-19, followed in quick succession by the ongoing Cost of Living crisis, has brought renewed focus on local support provided by councils to struggling residents. Many Londoners are facing financial hardship and the need for a local safety net is likely only to increase for the foreseeable future.
London boroughs are playing a vital role in supporting residents who are struggling with the impact of the Cost of Living crisis. Boroughs have already distributed previous rounds of the Household Support Fund (HSF) in innovative ways, for example by partnering with community-based organisations to support residents.
On top of the delivery of statutory schemes, there are numerous examples across London of boroughs developing and implementing additional support measures for their residents. These include increasing investment in their Council Tax Support schemes to lower council tax bills for the poorest households, support funds for residents struggling to pay their bills, and increasing investment in local advice services and food hubs for residents to access support. Some boroughs have rapidly developed and rolled out ‘No Wrong Door’ approaches to accessing council services and embedding them in community hubs.
But with its extension to March 2024 the HSF is the main mechanism by which boroughs can provide additional emergency funds to low-income Londoners and the schemes that boroughs develop for 2023/24 will be a critical mechanism for addressing and preventing financial hardship.
In particular, the guidance for HSF 2023/24 has extended eligible spend of the funding to include advice and support for the first time. While some boroughs have already been combining advice with their HSF payments this change will allow all authorities to align short-term-help with an offer that goes beyond crisis support to help households to improve their circumstances in the long-term through income maximisation, debt and benefits advice. Alongside other wrap-around services this can help support residents towards a more secure state of financial stability.
The principles outlined in this briefing are primarily drawn from the findings of the London Councils commissioned pilot that evaluated the Local Welfare Assistance schemes of seven London boroughs. This report of the pilot set out a number of service delivery recommendations that are also applicable to use of the HSF and are summarised in this briefing.
The study is the first in-depth evaluation of its kind. The researchers investigated Local Welfare Assistance’s role in delivering emergency financial support to residents who would otherwise find themselves in rapidly worsening situations, including high risk of homelessness. This research identified the type and nature of Local Welfare Assistance provision that delivered the greatest impact for residents.
Given the scale of financial hardship that exists within London the level of funding provided through the HSF is not sufficient to meet the needs of all residents. It is even more important therefore that the support available is targeted towards those that need it most. This underlines the value of local decision making, where knowledge of local need can support designing a scheme that maximises the impact of limited resources. This guide is therefore not meant to be prescriptive, but intends to outline a set of evidence based principles that can give boroughs ideas how best to support their residents in financial need.
London Councils will continue to make the case to government for a fully resourced local safety net with a long-term funding solution that can build on the success of the HSF and existing Local Welfare Assistance schemes to better support Londoners to a more secure future.
Target Household Support Fund to those most in need
- Use council data to proactively target support: for example, benefit data can provide indications of both households at risk of financial hardship; EPC ratings data could be indicators of potential fuel poverty; council tax arrears data can be used as an early warning of crisis; housing data can be used to show trigger points – particularly when a household is moving in or out of temporary accommodation. Communication about HSF could be introduced at crisis trigger points such as moving house, making a benefit application, or at the first sign of rent or council tax arrears.
- Consider how HSF could fit strategically with existing council services: where other council services of potential benefit to HSF recipients exist, such as income maximisation, referral pathways should be integrated into receipt of support. HSF should not seek to duplicate other services.
- Ensure that HSF policies do not exclude residents in need: for example, specific consideration should be given to residents with no recourse to public funds who will not be able to access other forms of support (and the HSF guidance makes clear are eligible to receive funding). Consideration should also be given to disabled residents who face additional costs (e.g. higher energy bills due to the need to keep warm as a result of a condition) and any assessment process should not consider disability benefits as income, which can act as barrier to receiving support. Available support should also be flexible and able to reflect different households structures, for example a single persons needs will differ from a larger family.
- Ensure information about HSF is widespread and reaches communities that may be unaware of it: devise strategies to reach residents not in contact with other council services and those who are socially isolated or unable to access the internet. Boroughs could consider disseminating information through groups that may come into contact with residents in crisis, such as religious centres, community organisations, schools and GP surgeries.
Review the Household Support Fund application process to reduce barriers
- Have more than one way to apply: it is now a requirement of the HSF to provide an applications-based process, but consideration should be given to having multiple application channels (e.g. online, by telephone, or through partner organisations) to ensure residents who may struggle with a particular method of application do not face barriers. Boroughs should also enable repeat applications from the same households that can be assessed on their own merits.
- Consider resident access needs: for example, deaf and disabled residents, residents with limited or no English and residents who may not be available during conventional office hours.
- Minimise stress and the costs involved in making an application: design the applications process to only ask for essential information and avoid requesting too much personal information or evidence. Where possible ensure residents are not charged for a telephone service. Ensure residents can communicate their situation as freely as possible and avoid strict tick box options for crisis situations.
- Consider partnering with local Voluntary and Community Sector groups: part of the funding and/or application process could be delegated to relevant VCS partners as a way of reaching groups wary of, or not visible to, the council. This can include VCS groups dedicated to supporting residents with no recourse to public funds or those with disabilities.
Review Household Support Fund delivery to ensure it meets the needs of all residents
- Offer multiple methods of support: where possible enable choice on means of support for residents, they are experts in their financial situation and will know what will have the greatest impact on their situation. A cash first approach offers residents the greatest flexibility as it allows recipients to spread support across various competing requirements such as food, fuel, and debt. It also enables recipients to get the most value from limited support by allowing them to shop in low-cost stores.
- Remove additional cost burdens and barriers to accessing support: avoid relying on vouchers for one specific supermarket which may be challenging for residents to access (for example if travel costs have to be incurred or a resident is disabled and not be able to travel) or may not provide the goods they need.
Provide follow up support
- Where possible ensure additional support is available to HSF recipients: engagement with the council due to financial hardship provides an opportunity to address wider support needs. Additional support requirements can vary and may encompass income maximisation and budgetary advice, all of which can now be funded through HSF. Additional support is effective in maximising income, improving the ability of residents to cope, and may go some way to prevent or reduce ongoing financial hardship.
- Have a process in place for making urgent referrals flowing from HSF: For example, to housing repairs, health, safeguarding or other relevant council services.
- Provide support packs to HSF recipients: containing advice, signposting, community support, and relevant retailers. This could include links to a benefit calculator, information about local advice services and the London cost of living hub. Provision of a support package allows the resident to refer to information within their own time and when they are resilient enough to do so.