Demand for welfare assistance soars by 219% in London

Local authorities in the capital are reporting an ‘unprecedented spike in demand’ for welfare support services.

A new analysis by the London Councils reveals that applications to local welfare assistance schemes rose by 219% from March to June 2020 compared to the same period last year.

The cross-party organisation is also concerned that the combination of a second wave of coronavirus and continuing job losses mean the situation will worsen in the coming months.

Local welfare assistance schemes were created in April 2013, when funding for community care grants and crisis loans were transferred to local authorities.

The government abolished its £178m annual funding for local welfare assistance from 2015/16.

Since then, councils have been forced to finance these schemes from their own general funds.

The analysis also shows that in July, there were over twice as many Londoners claiming jobseekers’ allowance (52,000) than there were in March (23,100).

London households in receipt of universal credit rose by 82% between February and May, compared with just 62% across the rest of England.

‘A second wave of the virus means that economic pressures are bound to get worse,’ said London Councils’ executive member for welfare, empowerment and inclusion, Cllr Muhammed Butt.

‘London boroughs will continue helping our residents as best we can and local welfare assistance schemes are a real lifeline. Even a modest amount of financial aid provided by a council can help a resident avoid spiralling debts, homelessness, and other situations likely to lead to larger costs to the public purse.

‘These figures demonstrate that councils are an essential part of the welfare safety net – but they also show that universal credit isn’t enough to support households facing financial crisis.’

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