Decision details

That the Leader of the Council:

Approves the outline spending plans for Derbyshire County Council’s allocation of the Household Support Fund Grant Extension of £10.800m.

Agrees the continuation of the delegation of authority to the Director of Public Health in consultation with the Director of Finance & ICT and the Executive Director of Children’s Services to approve amendments and changes to plans for distributing the funding in line with the overall scheme eligibility requirements for the period of the grant, 1 April 2023 to 31 March 2024

Many Derbyshire households will face financial hardship over the coming year particularly those including children and pensioners, who would otherwise struggle to buy food or pay essential utility bills or meet other essential living costs or housing costs. It is therefore important that the Council distributes the funds in a wide-reaching manner to support vulnerable households and takes the opportunity to boost the Derbyshire economy.

            Failing to distribute the funds to vulnerable households facing financial pressure may cause residents to enter crisis, which may put pressure on Council services further down the line.

            The blended approach proposed, which combines a direct application process as well as targeted support, will help reach a range of vulnerable people and make it less likely for people to fall through the gaps.

            Delegating the authority to the Director of Public Health allows the Council to respond flexibly and effectively to any challenges, risks and opportunities that occur during the grant period and maintain our ability to swiftly distribute funds to vulnerable residents.

Previous DWP grants have required authorities to allocate a set amount of the funds via vouchers to families and young people eligible for benefit-related free school meals over the school holidays. A number of other local authorities across the country are continuing this approach with plans to use the majority of their HSF allocation in this way.

However, as the fund covers a wider cohort of vulnerable households who would otherwise struggle to buy food, pay essential utility bills, or meet other essential living costs than previous grants, including those not eligible for welfare benefits, it is proposed that a blended range methods would be more effective, while maintaining a smaller element of vouchers to this group of vulnerable families in June 2023 and January 2024 as a ‘summer / winter grocery support payment’.

            The DDF provision under previous HSF funding has included scope for two payments in additional to the ‘three Emergency Cash Payments in a twelve month period’ set out by the DDF policy. Analysis of DDF data has shown that 78.4% of applicants are not awarded above 3 payments,

The increase in the value of the awards, and the recognition of financial hardship in the assessment process, have proven to be more significantly beneficial to a wider number of residents who are now approaching DDF for help.

The option to retain two additional payments would benefit a smaller proportion of residents, predominantly single younger males.

            Enabling additional payments, in the context of the limited funding scope could risk the funds being depleted earlier in the period, across a smaller number of residents, and is therefore not being proposed.

            As the HSF is paid in arrears on the submission of quarterly MI return to the DWP, there is the option for the Council not to take up the funds and opt out of the funding. However, this is not considered to be a viable option because it would be a disservice to vulnerable households and families in Derbyshire who are likely to be facing significant financial pressure. It may also put pressure on the Council’s social care services further down the line if families with children, pensioner households, and other adult households reach crisis due to their financial circumstances. In addition, not utilising the funds would deny the Derbyshire economy and local businesses the funds.