Purpose

To seek approval of the outline spending plans for DCC's allocation of the Household Support Fund Grant Extension Agree that the Director of Public Health in consultation with the Director of Finance and the Executive Director of Children's Services continues to oversee any adjustment decisions within the scope of the framework set out by this report, to allow the Council to respond flexibly and effectively to any challenges, risks and opportunities that occur during the grant period and maintain the Council's ability to swiftly distribute funds to vulnerable residents.

Decision

That the Leader of the Council:

 

Approves the outline spending plans for Derbyshire
County Council’s allocation of the Household Support Fund Grant Extension of
£5.404m.

 

Agrees that the Director of Public Health in consultation with the
Director of Finance and the Executive Director of Children’s Services continues
to oversee any adjustment decisions within the scope of the framework set out
by this report, to allow the Council to respond flexibly and effectively to any
challenges, risks and opportunities that occur during the grant period and
maintain the Council’s ability to swiftly distribute funds to vulnerable
residents.

Reasons for the decision

Many Derbyshire households will face financial
hardship over the coming six months particularly those including children and
pensioners, who would otherwise struggle to buy food or pay essential utility
bills or meet other essential living costs or housing costs. It is therefore
important that the Council distributes the funds in a wide-reaching manner to
support vulnerable households and takes the opportunity to boost the Derbyshire
economy.

 

Failing to
distribute the funds to vulnerable households facing financial pressure may
cause residents to enter crisis, which may put pressure on Council services
further down the line.

 

The blended approach
proposed, which combines a direct application process as well as targeted
support, will help reach a range of vulnerable people and make it less likely
for people to fall through the gaps.

 

Delegating the authority to
the Director of Public Health allows the Council to respond flexibly and
effectively to any challenges, risks and opportunities that occur during the
grant period and maintain our ability to swiftly distribute funds to vulnerable
residents.

 

Alternative options considered

Previous DWP grants have
required authorities to allocate a set amount of the funds via vouchers to
families and young people eligible for benefit-related free school meals over
the school holidays. A number of other local authorities across the country are
continuing this approach with plans to use the majority of their HSF allocation
in this way.

However, as the fund covers a wider cohort of vulnerable households who would
otherwise struggle to buy food, pay essential utility bills, or meet other
essential living costs than previous grants, including those not eligible for
welfare benefits, it is proposed that a blended range methods would be more
effective, while maintaining a smaller element of vouchers to this group of
vulnerable families in June 2024 as a 'summer grocery support payment’.

 

The DDF provision under
previous HSF funding has included scope for two payments in additional to the
‘three Emergency Cash Payments in a twelve month period’ set out by the DDF
policy. Analysis of DDF data has shown that 78.4% of applicants were not
awarded above 3 payments.

The increase in the value of the awards, and the recognition of financial
hardship in the assessment process, have proven to be more significantly
beneficial to a wider number of residents who are now approaching DDF for help.

The option to reinstate two additional payments would benefit a smaller
proportion of residents, predominantly single younger males.

 

          Enabling additional payments, in the
context of the limited funding scope could risk the funds being depleted
earlier in the period, across a smaller number of residents, and is therefore
not being proposed.

 

 

As the HSF is paid in
arrears on the submission of quarterly MI return to the DWP, there is the
option for the Council not to take up the funds and opt out of the funding.
However, this is not considered to be a viable option because it would be a
disservice to vulnerable households and families in Derbyshire who are likely
to be facing significant financial pressure. It may also put pressure on the
Council’s social care services further down the line if families with children,
pensioner households, and other adult households reach crisis due to their
financial circumstances. In addition, not utilising the funds would deny the
Derbyshire economy and local businesses the funds.