Cost of living: Fears for vulnerable over Liverpool council cuts

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Liver building
Image caption,

Liverpool City Council needs to find some £73m in savings this year

Some of Liverpool's most vulnerable residents could lose their homes if the city council presses ahead with plans to cut welfare support schemes, housing experts have warned.

The authority needs to find £73m of savings in its forthcoming budget.

Among the options are slashing several schemes designed to help people who are struggling or unable to pay their rent.

The council's cabinet member for finance said staff were working to avoid such "unpalatable options".

One proposal would see the closure of the authority's benefits maximisation team, which helps residents claim the benefits they are entitled to.

The council said the work was duplicating support offered by external organisations such as Citizens Advice.

Image caption,

Tom Roberts is a welfare advisor and has received financial help himself

Housing solicitor Siobhan Taylor-Ward, from the Vauxhall Law Centre, said losing the team would lead to more costly problems for the council in future.

She said: "If people can't stay in their home, that cost will fall on the council anyway. They'll have to be housed temporarily elsewhere and that's going to cost the council more.

"They [would be] cutting things that could prevent a situation getting out of control."

She said the preventative measures to help get rid of rent arrears were needed because "you avoid eviction" and costs of temporary accommodation along with"social services getting involved because children are suffering living in hotels and parents getting mentally unwell because of the stress".

Image caption,

Housing solicitor Siobhan Taylor-Ward said cuts would only exacerbate the city's problems

Another budget option is to reduce the amount the council allocates in discretionary housing payment (DHP), money given to people who need extra help with their rent when their benefits do not cover it.

The number of people awarded DHP in Liverpool is projected to be 13,000 throughout 2023. Last year just over 10,000 awards were made.

The government gives the council £1.1m towards this fund and the authority adds another million but, under the budget proposals, the council would stop adding its share.

Tom Roberts, a welfare advisor at the Vauxhall Law Centre claims DHP himself, as well as helping others navigate the system.

He said: "Personally, I know I probably won't qualify for the payment if the council reduces its funding.

"So that removes my security. And then it's that worry. Ok, so we pay the rent but what [other costs] fall behind because we are paying the rent.

"Day to day I see the most vulnerable in the city who don't have pennies to rub together and they will be the hardest hit.

"Now what do they do, pay the rent or the gas and leccy so they can keep the freezer running? It's a difficult choice."

'Few easy options'

Liverpool Citizens Support Scheme provides assistance with immediate living costs such as food, clothing or fuel, which are often provided when a person has no immediate funds.

They are often needed when the person is in the process of applying for a benefit payment or has no money after an unforeseen event. Under the budget plans, these cash awards would be replaced with vouchers.

Figures show some 23,000 people are expected to apply for help from the scheme in the coming year. The cost to the council would be over £4m.

Opposition politicians have raised concerns about the potential impact of the cuts being mooted.

Leader of the Green councillors, Tom Crone said: "We are starting a new year in a cost-of-living crisis. These proposals are taking money from people who are already the poorest in Liverpool."

Labour's Liam Robinson, cabinet member for finance, said "When I wake up in the middle of the night this is what I am thinking about. There are few easy options.

"These unpalatable options are the ones we are working round the clock to try to avoid."

The council will set its budget in early March.

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