The low income are not receiving welfare from their council

In an effort to improve the entitlement system, the central government starting sending funds to local councils in 2013. This change replaced the Crisis Loans as well as Community Care Grants, and the aim was to have authorities in counties and boroughs provide financial help to the low income in a more effective way.

It now appears that about 80 percent of local authorities are not spending all of the funds on the needy. The Department for Work & Pensions is reporting that eight out of ten councils surveyed still have funds left to provide to the low income, and the survey shows there are many reasons for this.

Causes of unspent welfare funds

Survey results show from the councils show a few different reasons for this unspent money. It will vary by county and area though, but some of the common reasons are as follows.

Some authorities are using the central government funds pay for other benefits and programmes. While the money is still focused on addressing poverty, it is being used in different ways such as paying for services for children including education, reform projects, or other types of social care. So rather than sending money or grants directly to the individual, it is being used for other approaches.

A number of councils are creating emergency funds and budgeting better. They are keeping a contingency in case the welfare programme is reduced, and also trying to ensure there is enough money for the entire year. They are also holding back some funding in case the schemes were to change in 2015-16.

One concerning reason for unspent welfare is a drop of in applications. It is not due to less demand for assistance, but it is because people are not as familiar with the new application process and council rules. Some individuals do not even know to call their local authorities to apply. This is concerning is the vulnerable are not having their needs met and may be unsafe as a result. Individuals that fall into this category can find information on local welfare and schemes.

Other authorities are putting in stricter application processes, reducing fraud, and limiting the types of bills that can be paid by welfare. They are also directing people to other services that may meet their need instead of welfare, and that can include a food bank or charity scheme. So they are in effect trying to brake the entitlement mindset of some abusers of the system.

An effort is also being done to prevent people from using welfare for drugs or alcohol, and councils are putting more control on that. This is a form of fraud, and local authorities have made a difference in this.

Almost all authorities surveyed by DWP expect increasing demand for welfare and cash support in 2015 due to flat wages and increasing household expenses. So the hope is the councils will provide all of their funds to the needy.