Additional funding to support low income and vulnerable households across Liverpool could be slashed to help the city council fill its financial blackhole.
In November, the local authority published its proposals to put itself on a stable financial footing. As a result, £73m of savings have been identified that need to be made in a matter of weeks.
Among the options faced by the Cunard administration are a potential hike in council tax, increasing fees and charges as well as a review of its libraries and fitness centres. A number of non-statutory services are also on the line, including a cut to the discretionary housing payment (DHP).
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The DHP assists residents in meeting shortfalls in state benefits by providing extra help with the cost of rent, thereby preventing rent arrears, protecting the tenancy and reducing the risk of homelessness. The payment is funded by the Department for Work and Pensions, with an annual allocation made every year to councils like Liverpool.
The city council has provided additional funding of £1m from its own budgets in recent years. It is now proposed to cut that cash addition, meaning the budget would be based on government allocation alone. With less overall funding, the local authority would have to review its funding allocation rules to provide to those who need it the most.
A consultation on the proposals was launched last week, with Liverpool Council seeking residents’ views on the potential funding cut. If this proposal is not taken forward the council may have to find £1m savings somewhere else and this may result in some other services being stopped or reduced.
Any possible change to the scheme would take place from April 1. The city council’s website is open for opinions on the mooted reduction until February 3, ahead of a final decision being made by the council cabinet in March.
Further savings on the table include a proposal to review the scope of the Liverpool Citizens Support Scheme (LCSS) and introduce a repair or replace element for domestic appliances, remove furniture packages for tenants of registered providers and remove home starter packs that could save £1.1m. A separate consultation on those is running until January 27.
A number of budget options including a cut to the city’s Christmas provision and an end to free city centre parking after 6pm were the subject of their own public engagement exercise that ended earlier this month.
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