Decision

Decision Taken: The Cabinet Member for Value for Money and Finance:

·       Approved the revised Crisis and Resilience Fund (CRF) budget for 2026/27, including the reallocation of £516,840 of previously CoL-funded CRF-eligible activity into the CRF allocation.

·       Approved the delivery of £1.63m of savings from the £2.04m total Council discretionary funding allocation, comprising a combination of prior year underspends, current year funding and a reduction in the Crisis Scheme from £1.5m to £0.5m.

·       Delegated authority to the Executive Director of Finance and Resources, to make any necessary budget adjustments to support delivery of the agreed approach, ensure compliance with the requirements of the externally funded CRF, and enable the programme to respond flexibly to changes in demand, delivery schedules and funding conditions, recognising that the Department for Work and Pensions (DWP) is the accountable body for the grant.

Reason for Decision: 

·       Financial sustainability – The Council faces a challenging funding environment, with rising demand and constrained resources. Delivering savings this year will help ease immediate budget pressures while optimising alternative and external funding. These savings will contribute to strengthening the Council’s reserves position, supporting longer?term financial resilience. Reducing funding from discretionary activity enables the Council to prioritise a more targeted and sustainable offer aligned with available funding and evidence of need.

·       National policy alignment – National policy is shifting from short?term crisis support towards prevention, financial resilience and long?term self?sufficiency. The CRF and Child Poverty Strategy prioritise addressing the underlying drivers of poverty, particularly low household income, through income maximisation and access to employment. This requires local provision to move away from broad, high?cost support towards a more targeted, means?tested model.

·       Value for Money considerations – Discretionary (council) funding was used to offset the loss of support under the Household Support Fund and maintain continuity for families; however, this was based on blanket provision and/or estimated demand. It is therefore appropriate to review these assumptions and align future provision to evidenced take-up, ensuring resources are targeted where they will deliver the greatest impact and represent best value for money within the available funding envelope.

·       Operational considerations – A managed approach is required to avoid abrupt disruption to residents, providers and commissioned activity. This will help the Council implement the changes in a more controlled way and reduce operational, legal and reputational risk. However, the Equalities Impact Assessment indicates that the reduction in provision is still likely to have negative impacts on some families, particularly those who previously relied on more predictable and preventative support. Impacts will continue to be monitored during programme delivery.