Councils in Gwent are facing millions of pounds in extra costs and lost income due to the impact of coronavirus.
Newport City Council has claimed more than £6 million in financial support from the Welsh Government from April to June, as it deals with increased costs in providing adult social care, free school meals and support for the homeless.
The city council has also lost £900,000 of income in the first quarter of the financial year, a cabinet report says.
In addition to this, the authority collected about £2 million less council tax income in the first two months of the year compared to 2019/20, with households facing financial difficulties offered revised payment plans starting in June or July.
Funding has also been allocated to care homes in the city to purchase Personal Protective Equipment, with nearly £900,000 provided in April and May.
More than 200 households have been offered emergency accommodation, and 75 rough sleepers have been homed.
A report says the council has a budget contingency of £1.5 million and a “good level of reserves” which could provide cover “in the last resort.”
Blaenau Gwent council is warning of a “severe financial risk” due to extra costs and loss of income resulting from the crisis.
The authority is predicting an increase in spending of £2.4 million and loss of £1.6 million in income.
If costs related to coronavirus are fully funded, the council’s budget pressure will reduce to £1.465 million.
A report says the pandemic has had “an unprecedented impact on the economy and on employment in the borough.”
There has been a “sharp increase” in the number of people claiming Universal Credit, with a rise of 535 between April and June.
Up to the end of May, 260 households presented as homeless in the borough, an increase of 100 cases in just two months.
Caerphilly council is estimating additional costs of £4.5 million for the first quarter of the financial year, with income loss predicted at £3.2 million.
Across Wales, the total lost income was more than £90m in the first quarter of the financial year, according to a Newport council report.
Welsh Government has allocated £78m for local government loss of income which the report says is ‘welcome’ but that it will “likely be insufficient.”
Loss of income will be “a significant issue and challenge unless further financial support is confirmed”, the report says, adding there is “ongoing discussion” with the Welsh Government on the issue.
