Millions of pounds in discretionary payments are to be cut despite Liverpool Council having to fill a smaller financial gap.
Liverpool Council has confirmed its final budget proposals for the next financial year following receipt of a government settlement just before Christmas. As a result, the amount the city needs to save stands at £49m rather than the eye-watering £73m previously feared.
As part of the better than expected settlement outcome, the local authority has confirmed welfare-related budget options including reduction or removal of the benefits maximisation team; reduction of the council tax support scheme; reducing the number of One Stop Shops and removal of council tax relief for foster carers have been avoided. The authority has confirmed it will seek to raise council tax by the new higher level of 4.99% when it meets on March 1.
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However, two cuts will still go ahead as part of the budget proposals. Savings of £1.1m will go ahead through a reduction of the Liverpool Citizens Support Scheme (LCSS). Rather than provide its own funding, the local authority will seek to utilise the government’s Household Support Fund to mitigate the loss for 2023/24.
The city council will also seek to introduce a repair or replace scheme for domestic appliances. Currently, the city spends around £400,000 providing replacement appliances to residents who either do not have a particular appliance or where an appliance is broken.
By introducing a repair or replace element an engineer will be sent to the resident’s home to attempt to repair the domestic appliance or provide a refurbished alternative. A further half a million pounds could be saved by ending the provision of furniture packages to tenants of registered social landlords.
It has been identified that those landlords can provide the service and recover the cost of these by applying a service charge to the rent. The tenant can claim this service charge through their housing benefit or Universal Credit housing costs.
The council will also seek to use the government funding to cover the additional removal of the £1m top-up it provides to the Discretionary Housing Payment scheme. These payments provide financial support to low income households where their state benefits do not meet the full cost of their rent.
To qualify for a payment, the recipient must be in receipt of either Universal Credit or Housing Benefit. The council said use of the government funding would mitigate risk of increased financial pressure to the council should it have to accommodate more people who run the risk of rent arrears or eviction.
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