The Overview & Scrutiny Committee met to discuss the cost of living crisis and the support measures in place for residents. Presentations were heard from council officers, East End Citizen Advice Bureau, First Love Foundation, Wapping Bangladesh Association, and Bow Food Bank, highlighting the significant challenges faced by the community and the strain on support services. The committee resolved to note the presentations and agreed that the feedback and evidence gathered would be presented to the Mayor and Cabinet, with a focus on improving coordination between support organisations and influencing policy to address the root causes of poverty.

Cost of Living Support in Tower Hamlets

Councillor Saied Ahmed, Cabinet Member for Resources and the Cost of Living, alongside council officers Julie Lorraine, Ellie Kershaw, and Abdulzarack Kassim, presented an overview of the council's efforts to mitigate the impact of the cost of living crisis. They detailed the £4.3 million distributed through the Household Support Fund, which has been used for cash-first payments and to bolster the resident support scheme. Initiatives such as the council tax freeze and free school meals for all young people were also highlighted.

The committee raised concerns about the accessibility of the resident support scheme, particularly for those who are not digitally savvy. Officers confirmed that applications can be made online or by telephone, with staff trained to assist residents. They also noted an increase in applications, suggesting the scheme is reaching those in need, though they acknowledged that promotion could always be improved. The council's resident hubs and Idea Stores were mentioned as resources for those needing digital support.

Concerns were also raised about the soaring cost of private rent in the borough. Officers explained that schemes are in place to support residents with private rental costs, including grants and loans, and that a portion of the Household Support Fund has been added to the Discretionary Housing Payment pot to provide further flexibility.

The issue of residents with no recourse to public funds (NRPF) was brought up, with officers confirming that the adult social care team holds the budget for such cases and can provide further details. They also noted that the Household Support Fund has been made accessible to those with NRPF where other support has been exhausted.

Regarding the impact of national policies, Councillor Bodrul Choudhury questioned how Universal Credit's five-week wait, digital-by-default approach, and the two-child limit collectively contribute to the cost of living crisis. Councillor Saied Ahmed acknowledged that these are government policies outside the council's direct control but highlighted that the council's targeted support, such as school meal vouchers, aims to alleviate some of these pressures.

The committee also discussed the lack of mention of care leavers in the report. Officers stated that the employment service provides support for care leavers, including assistance with travel costs for interviews, and that care leavers have received funding from the Household Support Fund for energy bills and service charges.

Councillor Saied Ahmed addressed the question of why the Bangladeshi community might be disproportionately affected by the cost of living crisis. He explained that a large percentage of the Bangladeshi community in Tower Hamlets are involved in hospitality or customer-facing businesses, which were heavily impacted by the pandemic. He also noted that many households have single earners, meaning a loss of income for one person affects the entire household.

Regarding the proposed 5% increase in council tax, Councillor Saied Ahmed assured the committee that the poorest residents in the borough would be exempt from any increase.

Finally, members requested a written response regarding whether legal advice was sought before the Mayor's name was added to letters concerning the Household Support Fund.

East End Citizen Advice Bureau

Ali Halil, manager of the East End Citizen Advice Bureau, presented on the significant increase in demand for their services. He highlighted that between November 2023 and January 2024, they assisted nearly 1,000 clients with cost of living issues, with welfare benefits, debt, and housing being the most common problems. He noted a 36% increase in cases compared to the previous year and expressed concerns about securing additional funding, as the partnership's funding had been reduced.

The committee discussed the need for better collaboration between the council and advice agencies. Residents suggested more forums with council departments and support in accessing funding. They also highlighted the benefit of direct contact with council officers, particularly for council tax and housing issues, to streamline support for residents.

First Love Foundation

Denise Radley, Founder and CEO of First Love Foundation, and Anika Olaitun Omoli, Head of Service, spoke about their transition from a food bank to a specialist legal advice service. They emphasised that the underlying issues driving poverty are complex and require more than just food provision. They reported a significant increase in clients presenting with debt and housing issues, with some clients working but still experiencing in-work poverty. They stressed the critical need for increased support for the advice sector, which is operating at 140% capacity.

The committee discussed the funding challenges faced by organisations like First Love Foundation. Residents noted that while they received a grant, it only covered a short period of their running costs. They highlighted the intensive casework required for specialist legal advice and the need for secure, sufficient core funding. The committee also acknowledged the importance of wrap-around care and the holistic approach taken by organisations to address complex needs.

Wapping Bangladesh Association

Atikur Rahman from the Wapping Bangladesh Association presented on how the cost of living crisis is affecting the Bangladeshi community and other BME communities in Tower Hamlets. He highlighted that the association, as the lead organisation for the Bangladeshi and BME Advice Forum, shares a £70,000 grant with four other partners. He noted a 40% increase in demand for advice services over the past 12 months, with common issues including increased shopping and energy bills, rising personal debt, and a drop in income for self-employed individuals.

The committee discussed the funding challenges faced by the association, with five organisations sharing a limited grant. Residents confirmed that they operate five days a week, relying on a mix of paid staff and volunteers. They also clarified that their services are open to all residents, not just those of Bangladeshi background.

Bow Food Bank

Steve Gilman, Chair of Bow Food Bank, and Dr Iram Ali, Trustee, presented on the evolving role of food banks. They stated that they are no longer solely providing emergency food but are increasingly acting as a support network, offering access to housing and benefits advice. They reported a significant increase in the number of families needing support, with many clients being in work but unable to make ends meet. They highlighted the need for better coordination across the borough's advice and food services to avoid duplication and ensure residents receive comprehensive support.

The committee discussed the impact of national policies, such as the benefit cap and the two-child limit, on food poverty. They also explored the council's role in supporting organisations like Bow Food Bank, with residents suggesting improved networking and communication channels. The need for residents to be checked for benefit maximisation and signposted to appropriate services was also discussed, though it was noted that this requires significant resources and training.

The committee resolved to note the presentations and agreed that the feedback and evidence gathered would be taken forward to the Mayor and Cabinet. There was a strong consensus on the need for better coordination between support organisations and for the council to influence policy to address the root causes of poverty. The committee also discussed the possibility of including recommendations in the upcoming budget report and submitting a separate paper to the Mayor and Cabinet.

The meeting concluded with members reflecting on the importance of using the committee platform to gather evidence from organisations and residents, and a commitment to seeking meaningful work and positive outcomes from the discussions.