The Overview & Scrutiny Committee met on 29 January 2024 to discuss the cost of living crisis and the support measures in place for residents. The committee heard from council officers and representatives from various community organisations about the challenges faced by residents and the services being provided. Key discussions included the effectiveness of council initiatives, the impact of national policies, and the need for greater coordination and funding for support services.

Cost of Living Crisis Support

Councillor Saeed Ahmed, Cabinet Member for Resources and Cost of Living, outlined the council's efforts to mitigate the impact of the cost of living crisis. He highlighted that tackling this issue is central to the council's strategic plan, with £4.3 million in cash-first payments distributed through the Government's Household Support Fund. Initiatives such as freezing council tax, providing free school meals for all young people, and grant support for voluntary organisations were also mentioned.

Ellie Cashel, Director of Integrated Growth and Development, elaborated on the council's approach, emphasizing the use of data to target interventions. She noted that the Household Support Fund has largely been distributed as direct grants to residents, with specific cohorts like those eligible for pension credit and Healthy Start vouchers receiving support. The resident support scheme offers an open access route for those not automatically eligible. The council's food hub has provided over a million meals, and campaigns to increase income, such as the pension credit campaign, have been successful. However, uncertainty remains regarding future government funding, particularly the cessation of the Household Support Fund, making long-term planning difficult.

Councillor Chowdhury raised concerns about the impact of Universal Credit policies, including the five-week wait, digital-by-default delivery, and the two-child limit, on families facing the cost of living crisis. Councillor Saeed Ahmed acknowledged that these are government policies but stated the council targets support through schemes like school vouchers and the resident support scheme.

Regarding private rental costs, it was explained that the homelessness team is developing schemes to assist residents. A portion of the Household Support Fund has been added to the council's discretionary housing payment pot, which can help with rent arrears for those on housing benefit or the housing element of Universal Credit. The amount of financial help is assessed on an individual basis, considering factors like rent, savings, and the shortfall.

Concerns were also raised about specific vulnerable groups, including those with no recourse to public funds (NRPF), care leavers, and disabled residents. It was clarified that while the current team's funding cannot directly assist those with NRPF, adult social care manages budgets for such households. For care leavers, funding from the Household Support Fund has been allocated for energy bills, service charges, and immediate costs like travel for interviews.

The discussion also touched upon the challenges faced by the Bangladeshi community, with Councillor Mannan noting that a significant percentage of this community are in sectors like hospitality and self-employment, which were heavily impacted by COVID-19 lockdowns. Single-earner households within this community were particularly vulnerable to income loss.

Councillor Francis questioned how a proposed 5% increase in council tax would help those most affected by the cost of living crisis. Councillor Saeed Ahmed stated that the budget report includes provisions for residents to be exempt from any increase, with the poorest in the borough still benefiting from a council tax freeze.

The distribution of government Household Support Fund letters, sent out in the Mayor's name, was also discussed. Councillor Francis questioned the usual practice and whether legal advice was sought. Councillor Saeed Ahmed explained that in an executive mayoral system, decisions are made through the Mayor, and this method of distribution was preferred by the cabinet and the Mayor. He confirmed that legal advice was sought and deemed acceptable.

Support from Community Organisations

The committee heard from representatives of several community organisations detailing their work and the challenges they face.

Eastern Citizen Advice Bureau (CAB), represented by Ali Halil, highlighted the significant increase in demand for their services, with over 36% more cases compared to the previous year. They reported that 44% of cost-of-living cases involved welfare benefits, 26% debt, 15% housing, and 15% financial support. The partnership, comprising 13 organisations, is struggling with reduced funding and a lack of inflationary increases, despite rising operational costs. They requested additional funding from the council to meet the overwhelming demand.

First Love Foundation, represented by Denise, founder and CEO, and Anika Olaitun Omoli, Head of Service, described their transition from a food bank to a specialist legal advice service. They have observed a significant increase in poverty and complex needs, with a stark rise in clients needing support for housing and debt issues. They noted that 40% of their current caseload involves housing and debt, a significant increase from previous years. The foundation highlighted the emotional and financial toll on clients who repeatedly have to tell their stories to different organisations. They are operating at 140% capacity and desperately need more support for the advice sector.

Wapping Bangladesh Association (WBA), represented by Atikur Rahman, detailed their work supporting the Bangladeshi and other BME communities in Wapping. They are part of a consortium that received £70,000 for cost-of-living issues, which they share with four other partner organisations. WBA provides advice and information services five days a week, alongside an elderly project, after-school programmes, and English as a Second Language (ESL) classes. They have seen a 40% increase in residents seeking help with the cost of living, citing increased shopping and food bills, high energy costs, rising personal debt, and reduced employment, particularly in the hospitality sector. They also highlighted the need for better coordination between organisations and more accountability.

Boar Food Bank, represented by Steve Gilman, Chair, and Dr. Iram Ali, Trustee, reported a significant increase in demand since their last appearance in December 2022. They are now supporting 500-550 families a week, a substantial rise from previous figures. They noted that the root causes of food poverty are largely due to national policies, but local service organisation also plays a role. The food bank is evolving to become more of a support network marketplace, aiming to provide access to various services alongside food provisions. They are struggling to find services to signpost people to due to funding issues and high demand within the advice sector. Their key asks were for better borough-wide coordination of advice and food services and for the council to act as a feedback mechanism on the impact of local and national policies.

Key Themes and Recommendations

Throughout the presentations, several key themes emerged:

• Increased Demand: All organisations reported a significant increase in the number of people seeking help due to the cost of living crisis, with many clients presenting with complex and multiple needs.
• Funding Challenges: Many community organisations are struggling with insufficient funding, reduced grants, and a lack of inflationary increases, despite rising operational costs and increased demand.
• Need for Coordination: There was a strong consensus on the need for better coordination between the council and community organisations, as well as among the organisations themselves, to avoid duplication of services and ensure residents receive comprehensive support.
• Policy Impact: National policies, such as benefit caps, the two-child limit, and changes to Universal Credit, were frequently cited as drivers of food poverty and financial hardship.
• Shift from Emergency to Prevention: Organisations are increasingly moving from providing emergency food aid to offering more holistic support, including advice on benefits, housing, and debt, to address the underlying causes of poverty.
• Role of Advice Services: The vital role of specialist advice services in helping residents navigate complex benefit systems, challenge decisions, and maximise their income was repeatedly emphasized.

The committee members expressed their commitment to taking the feedback and recommendations forward. Potential actions discussed included:

• Incorporating recommendations into the upcoming budget report and separate papers to the Mayor and Cabinet.
• The Chair feeding back initial points to the Cabinet.
• Investigating the feasibility of continuing cash support for food banks.
• Reviewing the removal of funding for TCAN (Tower Hamlets Community Advice Network) and advocating for its reinstatement.
• Considering recommendations for contract uplifts in line with inflation for advice services.
• Exploring ways to improve communication and coordination between the council and the voluntary sector.
• Investigating the council's own policies, such as council tax collection, to ensure they are not exacerbating hardship.

The committee acknowledged the significant work being done by community organisations and the council, while also recognising the scale of the challenge and the need for continued efforts to address the cost of living crisis and its underlying causes.