Report of the Deputy Chief Executive and City Treasurer.

This report identifies the current budgets and support the Council operates in delivering its Anti-Poverty measures, offers options for future Anti-Poverty provision and provides a suggested framework for describing ongoing Anti-Poverty provision and expected outcomes.  

The committee considered a report of the Deputy Chief Executive and City Treasurer which identified the current budgets and support that the Council provided in delivering its Anti-Poverty measures, offered options for future Anti-Poverty provision and provided a suggested framework for describing ongoing Anti-Poverty provision and expected outcomes.

Key points and themes within the report included:

• Providing an introduction and background to anti-poverty support measures;
• The work of Making Manchester Fairer and the Anti-Poverty Strategy;
• Anti-poverty budgets for 2023/24;
• Measures such as Council Tax Support, the Household Support Fund (HSF) and the Residents at Risk Cost of Living Group;
• Framework and options for 2024/25;
• Recommendations for the anti-poverty budget allocation; and
• The range of households supported by HSF and the projected spend at 31 March 2024.

Some of the key points and queries that arose from the committee’s discussions included:

• Noting the likely end of HSF and the importance of communicating this to residents in a timely manner;
• When an announcement on Local Housing Allowance was expected;
• Querying the £968k underspend in the Cost-of-Living budget for 2023/24 and why residents were not presenting for support when needed;
• Whether more work was needed with sector organisations to promote the Discretionary Council Tax Support Payment scheme; and
• Whether targeted support could be provided to those in receipt of free school meals and the holiday activities programme in the event that HSF did not continue.

The Deputy Leader introduced the report and explained that it highlighted the Council’s current anti-poverty spending and options for the future. She stated that this was a complex area and thanked officers for their work. She recognised that the cost-of-living crisis was ongoing and that residents were still feeling the impacts of this, with the Council prioritising support for residents whilst facing its own budgetary pressures. She expressed her concern that the government had not provided any indication that HSF would continue after March 2024, noting that this fund was vital to residents and in funding the Council’s free school meals and holiday activities programme.

The Head of Revenues, Benefits and Customer Services echoed concerns over the end of HSF and explained that 50% of the HSF budget was maintained for free school meal provisions in school holidays. He informed the committee that the Council would face a reduction of around £4.9m in resources if HSF was discontinued.

In response to members’ points and queries on HSF, the Executive Member for Finance and Resources stated that the Leader of the Council was working with the Local Government Association (LGA) on this, and that Manchester MPs were going to table an item in Parliament to encourage the continuation of support. The Deputy Chief Executive and City Treasurer recognised the significant impact of the discontinuation of HSF and stated that officers had begun to look at budget options in the event that HSF was continued.

The Head of Revenues, Benefits and Customer Services emphasised that officers had started to model the impact of receiving a similar or reduced level of HSF and that they would continue to work closely with colleagues in the Communications team to inform residents of the support available.

The Head of Corporate Assessments informed the committee that indicative figures on the Local Housing Allowance had been received that week which suggested substantial increases. He stated that this was encouraging and had been welcomed by the Homelessness service as a move in the right direction. He noted that there would remain a gap between the LHA and rent prices but stated that the rise would moderate demand for Discretionary Housing Payments.

The Deputy Chief Executive and City Treasurer explained that indicative LHA rates had increased to the thirtieth percentile of market rent prices and that further information would be shared when available.

The Head of Corporate Assessments explained that a lot of work had been undertaken in the previous 12 months to ensure an effective focus on the private rented sector. He explained that there had been an increase in demand for Discretionary Housing Payments (DHP) within the social landlord and private rented sectors over a number of years. He stated that DHP was designed to provide short-term support for residents and that the Council sought to be creative in finding ways to maximise support. He recognised that communications would not reach every resident but that there was clear communication about the scheme. The committee was informed that the move to Universal Credit provided an added complexity, and it was recognised that more work was needed, particularly with colleagues in Neighbourhoods to raise awareness of the support available.

It was also acknowledged that communications about Discretionary Council Tax Payments would need to be shared imminently.

In response to a query regarding the possibility of providing targeted support to those in receipt of free school meals and the holiday activities programme, the Head of Corporate Assessments advised that the free school meals programme included a significant number of children and that providing targeted individual support would result in small payments that would have minimal impact. He emphasised that there were a number of support schemes available to those presenting in need, such as the Welfare Provision Fund and Section 17 payments. The committee was also advised that the Council would continue to provide free school meals during the Easter 2024 holiday because of when it fell in the calendar year.

Members were informed that any additional funding would be announced on 6 March 2024 in the Chancellor’s next financial statement.

In summarising, the Executive Member thanked officers for their work, particularly those who delivered the HSF programmes, and the Chair echoed these sentiments on behalf of the committee. 

Decision:

That the report be noted.