Crisis support in Rochdale increases, despite struggle to provide help from other local authorities

Support for vulnerable people wanting to live independently in their own homes and people facing a sudden financial crisis has increased over the last three years in Rochdale, despite many local authorities struggling to respond to the demand.

A major new study by Greater Manchester Poverty Action (GMPA) found local authorities struggle to respond to demands of financial crisis due to the severity of central government cuts.

Since the government’s decision to devolve responsibility for Community Care Grants and Crisis Loans to local authorities in the form of local welfare assistance schemes in 2013, spending on this vital crisis support in Greater Manchester has fallen from £19 million in 2010/11 to £3.8 million in 2017/18.

With no ring-fenced funding or requirement on local authorities to operate schemes, some increasingly cash strapped councils in Greater Manchester are having to cut funding for their schemes.

In Greater Manchester there were 123,220 Crisis Loans for household items and expenditure and Community Care Grants awards made in 2010/11, compared to 10,077 successful applications for support through local welfare assistance schemes in 2017/18: a fall of 92%.

Despite being under financial pressure, all ten local authorities in Greater Manchester have maintained local welfare assistance schemes.

Over the last three years, Rochdale has managed to increase its crisis budget by 14%, with only Salford above it (49% increase). Whilst Manchester and Wigan remained the same, support in the other Greater Manchester boroughs fell between by as much as 55% (Bury).

For the same time period, Rochdale Borough Council has not witnessed any noticeable change in the amount of people applying for funding, and supported 366 residents through the Discretionary Crisis Fund in the first six months of 2018.

The Discretionary Crisis Fund is a last resort to help people who find themselves in a crisis, such as fleeing domestic abuse, not being able to heat their home, making emergency journeys or resettling into the community if leaving care, prison or temporary accommodation.

Daalat Ali, cabinet member for planning, development and housing at Rochdale Borough Council, said: “The discretionary crisis fund helps our residents who find themselves in crisis and supports them to get back on their feet.

“Supporting our most vulnerable residents is a priority for the council and we are pleased to be able to continue to help residents who are in need of additional support, despite increased cuts from central government.”

GMPA Director Graham Whitham said: “The Government’s hands-off approach to crisis support has failed.

“It was unrealistic to expect local councils to pick up the responsibility for crisis support during a period when councils in Greater Manchester have been facing unprecedented cuts to their budgets and without any proper guidance or support from central government.

“Having a well-funded and well-operated scheme in the place where you live could be the difference between living independently in your own home or ending up on the streets.”