Purpose

The number of ‘children in
poverty’ is on the increase across the whole of the UK
(according to Child Poverty Action Group). Many families in
Herefordshire who are on low incomes are struggling to afford food,
energy and other essential household items. This includes those
working households, who are above the free school meal income
threshold as well as those on low incomes just above the means
tested threshold for benefits. Low-income households spend a larger
proportion than average on energy and food so will be more affected
by price increases.

Providing food vouchers for households of children and young
people, at the discretion of the schools, can support households to
prevent escalation of problems. These include families with
children of all ages, large families and single parent
families.

The approach has been tested with a number of schools and community
representatives and has had a positive response. The proposal has
been developed with the Strategic Finance Manager for Schools to
develop procedures and guidance on how the scheme will work. The
scheme is scheduled for review in October 2023 and appropriate
adjustments will be implemented as required.

Through this proposal, primary and secondary aged school pupils who
are in households that are in the most need of support to help with
significantly rising living costs will receive a food voucher that
can be redeemed at supermarkets. It is anticipated that this is a
one-off payment but that by exception some households may need
further support and this will be capped at a maximum of three
vouchers to end March 2024. Families will be identified by schools
which are well placed to identify struggling households.

50 Eligible schools have been determined using data based on the
number of pupils that attend the school on FSM, this shows as an
indicator of deprivation. All eligible schools have at least over
15% of children on FSM's.

Herefordshire Council has received an allocation of
£2,659,203.57 from the Department of Works and Pensions under
the next phase of the Household Support Fund which will run from 1
April 2023 to 31 March 2024. The expectation is that the funding
should be used primarily to support households in the most need.
This scheme will form part of wider offer that is being developed
as part of the allocation of the Household Support Fund.

By utilising the funding from government, this will have a positive
impact on low income families and child poverty by minimising the
debt burden on those that struggle to pay essential bills.

In February 2023, there were 10,370 households in Herefordshire
claiming Universal Credit, the highest level seen since January
2020. Of these households just over a half (5,330) had at least one
child.

Consumer prices, as measured by the Consumer Prices Index (CPI)
rose by 10.1% in the 12 months to March 2023. The Bank has raised
the base rate of interest to 4.25% in March 2023. The unemployment
rate is 3.7% as at end of February 2023, but is set to increase to
around 5% by the end of 2023. There have been significant increases
in the price of energy and food and this is likely to continue to
increase.

These increases have resulted in more households struggling with
the financial strain, including those not previously eligible or
support through existing government schemes.