Agenda item

Cost of Living Crisis Update

Minutes:

The Committee received a presentation from Martin Walmsley, Assistant Director Shared Revenues & Benefits and Kate Bell, Climate Change Manager regarding the Cost-of-Living Crisis update and the support available to residents. During consideration of the presentation, the following points were noted: -

 

·       There was a button on our website to direct readers to the cost-of-living support available. In addition, we had been circulating a cost-of-living support leaflet

·       There had been the delivery of national and local schemes and the focus was on residents’ and business’ needs

·       There had been a promotion of regional and national guidance

·       The recent focus had been on help with food and collaborative work had taken place with Community Grocery through Towns Fund monies. It was located close to Citizens Advice (CA) and Job Centre which resulted in a positive geographical location

·       Work had been ongoing with food banks and demand had increased exponentially. It was noted that there had been no decrease in demand and January was a difficult time for those in debt

·       Officers commented that Greater Lincolnshire Food Partnership was a valuable website and was updated regularly

·       Work was ongoing with Lincolnshire County Council (LCC) for free school meals

·       The recognition and demand of ‘Warm Spaces’ had grown considerably

·       The Household Support Fund had seen significant funding through LCC from central Government. The demand resulted in the funds in December 2022 only lasting two days

·       Examples of support that we had delivered included:

o   Test and Trace Support payments which totalled more than £1m

o   Household Support Fund payment which totally more than £746,000

o   Covid Additional Relief Fund of £852,032

o   Expanded Retail Discount of more than £40m

o   Discretionary Housing Payments of £132,000 due to be paid out in 2022/23

o   Council Tax Energy rebates which totalled more than £6m

o   Council Tax Support Fund in Lincoln of £222,803

o   Home Energy Upgrade Scheme of £750,304

·       We were currently in the process of sending £250 through the Post Office to recipients of Housing Benefit that did not benefit from the National Cost of Living Payment scheme

·       The cost-of-living support offered to businesses included a 75% reduction for 2023/24 – up from 50% in 2022/23

 

The Chair gave thanks to Officers for an informative presentation and welcome comments and questions from Members of the Committee. During discussions, the following points were noted: -

 

Comment: Thanks were given for the statistics within the presentation. Communications was a concern and the importance of making sure word reached the public on the support available.

Response:  When the Household Support Fund (HSF) went live, it was important to individuals who approached referral partners, for example CA,  to be referred for vouchers. Social media was a fantastic tool but concerns were raised regarding an increase in demand further to social media posts. There was the potential for additional funding of £60,000 for February and March 2023. Conversations with foodbanks were ongoing and they were asked how they felt the support offering was best approached. A great number of residents were supported with the HSF but concerns were raised regarding the future of the HSF and what legacy could be left. Communications with Lincolnshire County Council and other districts would aim to try and reduce dependency.

 

Comment: Members were looking forward to seeing the Community Grocery.

 

Question: Where was Citizens Advice (CA) going?

Response: It was staying within City Hall and meeting with CA took place every 4-6 weeks to ensure methods worked well and individuals were correctly signposted to support.

 

Question: There were 2-3 Warm Spaces within Minster Ward. Churches had been instrumental in the utilisation of funds available and the result was phenomenal. Could officers track how many times the cost-of living support button had been pressed on the website?

Response: Recognition was given to Churches and the support they had offered residents. Individuals within the County had considered next winter and the measures that could be taken to best prepare. Moving forward, preparations would include best practise and working within a team in an attempt to secure additional resources. Analytics from the cost-of-living crisis button on our website could be sought and send further to the meeting.

 

Comment: It was positive that consideration had been given to next winter, but it was important to consider how to market the support that could be available. Warm Spaces had been heavily stigmatised because of what it represented. Marketing Warm Spaces as ‘A Free Cup Tea’ could remove the stigma attached to it.

Response: Warm Spaces fell under the remit of Paul Carrick, Neighbourhood Manager Central and marketing was very important to ensure the stigma of Warm Spaces was removed.

 

Question: In times of crisis and emergency, support and schemes were often arranged with little notice and future. From a local perspective, was there anything that could be put in place to future proof the work?

Response: The cost-of-living crisis had affected people who had never needed support previously. It would also affect individuals when the time came to renew their mortgage. It would be useful to consider the previous credit crunch of 2008 and give consideration to work that was carried out at that time to ensure successful briefing. Funding for one year seemed positive as ordinarily, it would be available for a number of months only. Food bank dependency was a concern and the demand for the Community Grocery had increase significantly. The Community Grocery ensured individuals were offered mainstream shopping to promote independence and budgeting and we able to shop for £4.00. It was hoped that there would be a significant amount of money available for Lincolnshire under the Household Support Fund 2023/24. There had been presentations made that concerned ‘a permanent welfare local provision pot’ however nothing had been agreed formally.

 

Question: It was positive to hear information on the Home Upgrade Grant. We were pooling money with other districts?

Response: There was a consortium between West Lindsay District Council and North Kesteven District Council. The figure awarded was per authority and if there was an underspend at one authority, spending could occur within the consortium. There were very few off gas homes and those we had, were built in approximately 1990 and therefore, were relatively energy efficient. We had found only 2. Any surplus funds would be used within the consortium. The scheme was available to applicants with a household income lower than £30,000 and an Energy Performance Certificate (EPC) rating of E, F or G. We had a considerable number of properties in Lincoln with an EPC rating D. There were 58 applicants on the waiting list that we were unable to process as we would exceed allocation. There had been an introduction of the ECO4 Scheme to offer improvement of the energy efficiency of housing stock occupied by low income and vulnerable households. Any homes that were unable to proceed through the Home Upgrade Grant would be signposted to the ECO4 scheme due to be introduced in April 2022.

 

Comment: Members offered praise to the Council for the creation of a hub for the Department for Work and Pensions (DWP), CA and the Community Grocery – that did not require a referral for use and therefore, offered a very positive resource for individuals in need. Recognition was given to the cost-of-living support leaflets and it was confirmed that they were well received. There were a large number of individuals that did not have access to the internet and as such, the leaflets ensured information was shared more widely.

Response: Digital inclusion was important and during implementation of the Council Tax Support scheme, 11% of individuals contacted did not have access to the internet or were unable to complete the relevant forms. The leaflet would be reviewed regularly to ensure it contained the most up to date information.

 

Question: What was the process of securing an EPC rating for a property in the instance that it did not have one?

Response: The scheme paid for an EPC rating if a property did not have one and it would pay for the rating before and after installation. An EPC rating was effective for a period of ten years. A rental property would have an EPC rating and it would be needed for a house to be listed on the property market for sale.

 

Question: In March 2021, central Government announced the Covid-19 Additional Relief Fund (CARF) to offer support to businesses affected by the pandemic. Had there been consultation with local business to discover what they had experienced? There was a concern that businesses were struggling and at risk of closure. If businesses did not grow, there would be less opportunity to help people into work.

Response: Following the announcement of the CARF from central Government, subsequent guidance and funding allocations were not received until a number of months later. During the time elapse, many businesses had closed and others had thrived. Therefore, despite campaigning, we were unable to utilise the full allocation available and the scheme closed on 30 September 2022. Further discussions would be best directed at Kate Ellis, Major Development Director.

 

Comment: A number of warm spaces were now entitled ‘Warm Welcome’ and offered networking, tea, coffee and discussions which felt more presentable.

Response: ‘Warm Welcome’ gave warm spaces a café style feel.

 

Question: Were there contingency plans in place for when Government withdraws support for gas and electric to ensure more individuals do not fall into poverty?

Response: Work within the Corporate Management Team (CMT) was ongoing to signpost contingency plans and a high priority within workloads. Further information could be provided to the Committee when more information was available.

 

Question: Were there any comparisons that could be drawn from other areas and regions regarding the support they offered residents and what we were doing?

Response: There was ongoing dialogue with other Councils and third sectors within the City which had worked well. There was a strong sense of goodwill within the City and it had great neighbourly relationships.

 

Comment: Warm Spaces should be viewed as a sociable facility, not a charitable one. Global gas prices had reduced recently however there was a lag as companies secured gas many months in advance. Businesses with high energy usage were affected considerably by large utility bills.

Response: Energy prices were reducing and the reduction was reported within the media.

 

Question: The total award to businesses under the CARF scheme was £850,000. How much more could have been spent from the total allocation.

Response: The total funding figure received was £2.7m. Delay of central Government guidance and funding had caused significant issues in identifying businesses in need.

 

Question: Were there restrictions to be successful in an award for support to be granted?

Response: The guidance received was a requirement for businesses to demonstrate a 30% reduction in revenue of which many businesses could not do. Therefore, we moved to demonstration of a 20% loss in revenue as the 30% requirement was guidance only.

 

Comment: Local businesses had experienced a rise of over double in their utility expenditure. Hospitality businesses were not thriving and had not risen their prices in line with rising expenditure to continue operating. In addition, owing to the cost-of-living crisis, many households had reduced the number of times they dined out.

 

The Chair gave thanks to Officers for the information provided and for the remarkable work carried out for residents within the City.

 

Note: Councillor Rebecca Longbottom left proceedings at this stage.