Spring statement support is 'sticking plaster on open wound' for Telford and Wrekin
A council leader says Government plans to help councils support people impacted by the rising cost of living are "a sticking plaster on a deep wound".
Chancellor Rishi Sunak used his spring statement to announce there would be £500m added to the Household Support Fund – taking the total to £1bn.
The fund is intended to provide targeted local welfare support to low-income households facing financial hardship.
But Councillor Shaun Davies, Labour leader of Telford & Wrekin Council, said that the fund currently equates to £3 a week for eligible households and would not address the pressure on people hit by rising costs.
He said: “The cost of living crisis is being felt by almost every household in Telford and Wrekin with inflation now over six per cent and forecast to increase much further.
"As a council, we recognised the growing pressure on people’s personal budgets and took action to freeze the level of general council tax this year and next. We’re the only council in England to do this and already have the lowest council tax in the Midlands for the services we provide.
"Many people, especially pensioners and those on fixed incomes, continue to be fearful about how they will make ends meet and whilst the national benefits system will need to be the first line of support, we are on the side of our residents and will use our limited council resources to give additional help to local people who need it most.
“We are yet to find out what extra funding will be allocated to Telford and Wrekin to extend the Household Support Fund, but currently the fund is worth just over £3 a week per eligible household across a year, with around one in eight homes qualifying for support.
“The reality is that a short-term crisis fund is a sticking plaster on a deep wound and it cannot address the underlying cost-of-living pressures facing our residents. It needs a long term solution based on growing the economy and improving people’s overall life chances.
“With austerity seeing our council having to make budget savings of over £130 million a year, this will be a challenge but we will continue to push for our fair share of the Levelling Up Fund and wider government investment."
