Household Support Fund

Baroness Sherlock Excerpts

Wednesday 24th July 2024 Lords Chamber

[Baroness Lister of Burtersett]

To ask His Majesty’s Government what plans they have for the future of the local authority Household Support Fund, due to expire in September.

[The Parliamentary Under-Secretary of State, Department for Work and Pensions (Baroness Sherlock) (Lab)]

My Lords, the household support fund is a scheme to provide local support to those most in need. For the period April to September 2024 DWP has provided £500 million, of which £421 million is for local authorities in England to spend at their discretion, with the balance going to the devolved Administrations. No funding was budgeted beyond September. As a new Government, we keep all policies under review, including the household support fund.

[Baroness Lister of Burtersett (Lab)]

My Lords, I welcome my noble friend to her rightful place. May I urge her to impress on her government colleagues the urgent need for the fund’s extension for at least six months, to give local authorities certainty and to enable the development of a longer-term, ring-fenced local crisis support scheme to replace also the discretionary welfare assistance that many authorities have scrapped and that is vulnerable to further cuts? As she knows, the alternative is even greater hardship for people in very vulnerable circumstances and even greater reliance on food banks.

[Baroness Sherlock (Lab)]

My Lords, I thank my noble friend for that question and for the warmth of her welcome. We appreciate very much the crucial role that local authorities are playing in providing crisis support to vulnerable people in their areas. Indeed, my department is engaging closely with each local authority in England to make sure that we understand the ways in which they are using the household support fund.

She mentioned that it is not the only source of support; some local authorities still have local welfare assistance schemes and there are other forms of localised support. But the Government are very conscious of the financial pressures facing local authorities and we are committed to ensuring that councils have the resources they need to provide public services to their communities. As I say, the policy is under review but my noble friend’s points are well made and I will take note of them.

[Baroness Pinnock (LD)]

My Lords, I have relevant interests recorded in the register. Prevention is better than cure, for the reason that it can improve lives at a lower cost. Does the Minister agree with that and will she consider working with councils and the Local Government Association to develop a scheme that enables preventive work, rather than the existing household support scheme?

[Baroness Sherlock (Lab)]

I am grateful; that is a really important point and I thank the noble Baroness for making it. Prevention is always better than cure, even if it is not always possible to replace cures entirely with prevention. There may always be the need for some support locally. The way that the fund runs has been designed deliberately so that every local authority can choose how it spends it; and they have chosen to do it in different ways. DWP has given guidance about the nature of the groups that need supporting, and it is for essential support. Some authorities have given grants to third parties; others have given money directly to people and some have even given food. But her broader point is well made. I certainly know that my colleagues in the Ministry for local government—MHCLG—are talking closely with local authorities about how we can get better at doing multiyear funding, giving stability to local government and engaging more effectively in the way that we spend this money.

[Lord Bird (CB)]

While we are talking about poverty and children, can I ask a very cheeky question? Why is it that the Government are punishing seven members of the Labour Party who have put the party behind the interests of the people? Why are they doing this? This is a very disgraceful thing to be doing so early in their Administration.

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[Baroness Sherlock (Lab)]

My Lords, I assume that the noble Lord is talking about a vote in the other place on the two-child limit. I certainly would not comment on the decisions of the Chief Whip here—never mind at the other end—who is of course always right. I simply take gentle issue with the suggestion that people taking a particular view are putting party before country. I recognise that there is a concern about the two-child limit, but our new Prime Minister could not have shown a greater commitment on child poverty. One of the earliest major announcements he made, in his second week, was to create a major commission on child poverty, with Ministers drawn from across government. It will of course look at important questions such as household income, but poverty is not just about that. It is going to draw in and look at education, childcare and health—all the things that prevent our children having the best start in life—and I am really excited about that.

[Lord Young of Cookham (Con)]

Does the Minister recall that, the last time we debated this, the outgoing Government agreed to extend the household support fund for a further six months until September? Does she recall that, at that time, I intervened to suggest that, instead of a cliff edge at the end of September, there should be some form of taper? Will the Government consider that?

[Baroness Sherlock (Lab)]

I remember that very well. In fact, I read the Hansard of the last time this came up and noticed that the noble Lord made that point. When I looked at how the financing had been provided, I saw that the money had been provided for only six months. Therefore, there is currently nothing in the budget to go beyond that. But I take his broader point about cliff edges and short notice being unhelpful. As I said, we need to get back to a space where we can support councils with longer, multiyear funding to give them the kind of stability they need but simply have not had recently.

[The Lord Bishop of Manchester]

Something like seven out of every eight local authorities now use this money to alleviate holiday hunger among our children. Can we have any hope that the Government will look at a more strategic way of helping children cope with hunger during the school holidays? Many of the churches in my diocese, and those of my right reverend friends here, are having to put on voluntary projects to support children during those periods. What can we hope for?

[Baroness Sherlock (Lab)]

I pay tribute to the Church and other faith organisations, which do such important work with children, families and their communities. I commend them for that. The question of holiday hunger, and indeed of children and food, will clearly be considered by the child poverty strategy and the task force when it gets together. We will set up a child poverty unit in the Cabinet Office that will work with the task force. We have already begun talking to stakeholders of different kinds, asking for experiences and getting expertise from inside and outside government to look at the best ways we can make this better. But we are also making some specific starts. For example, we are committed to making sure we have breakfast clubs in every single primary school. That is a simple measure that helps with the cost of living for families and helps children to start the school day able to concentrate because they have had something to eat. So I fully accept the importance of ensuring children have food and of being consistent; that will be part of what we look at.

[Baroness Thornhill (LD)]

My Lords, it will be music to the local government sector’s ears that the Government are looking at multiyear funding. I ask them also to consider ending the begging-bowl regime, where councils have to bid every year against each other for funding. As we have heard in this House just in the last two days, funding is ending in September and ending in March. We need to move away from that to give much more financial sustainability to local government.

[Baroness Sherlock (Lab)]

My Lords, certainly in this Parliament, we will provide councils with more stability and certainty through multiyear funding settlements. The aim is to ensure that councils can plan their finances for the future properly. But we will also work with local leaders to try to end competitive bidding for pots of money, and to reform things such as the local audit system to ensure value for money for the taxpayer. I know that my colleagues in MHCLG are very interested in working together with local government to find a better way of funding local councils.

[Baroness Boycott (CB)]

My Lords, I am sure everyone welcomes the government scheme to introduce free breakfasts, but I am concerned about the rates of obesity, especially in lower-income areas. When kids come in at five, 25% are obese, and when they leave at 11, 47% are obese. What are the standards of these breakfasts? Many breakfasts that schools offer are bagels and high-sugar cereal, because these get donated by companies trying to “look good” in the eyes of their shareholders. I have not read anywhere what the standards of food are and I would be very interested to meet with the Minister to discuss this, because it is critical if we are to have a genuine health impact.

[Baroness Sherlock (Lab)]

The noble Baroness makes a good point and I commend her for raising it repeatedly in this House. It is an important question and I have two things to say. First, the breakfasts will be fully funded; they will not be done on the cheap. Secondly, colleagues in the Department for Education will consider carefully the question of the composition and health nature of the breakfasts; I am sure that will be taken into account. I will make sure that point gets passed back.

[Baroness Bull (CB)]

My Lords, despite household support fund guidance making it clear that local authorities should consider the needs of low-income families that cannot work, particularly those with disabilities, we know that people with learning disabilities are disproportionately impacted by the cost of living crisis. So can the Minister say whether the Government will commit to an additional tranche of funding that is strategically targeted at disabled people in crisis, while a longer-term plan for their financial well-being is implemented?

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[Baroness Sherlock (Lab)]

My Lords, I regret that I am not in a position to commit to another tranche of funding. What I will say is that one reason why the scheme was designed to give maximum discretion to local authorities was a recognition of the difference in composition in local areas and different sets of needs, but also the different resources available. We have given some guidance out from DWP about the nature of the client groups, and we have said previously that at least part of the money should be available on application. I can certainly feed that point back in. At this stage we do not know what the future of the fund is—but it is an important point and I shall make sure that it is taken back to the department.