Financial support for low income and vulnerable households across Liverpool faces being cut in less than two months time as a consultation on the plans is due to end.
In November, Liverpool Council 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 with the final proposals likely to be confirmed in two weeks when its cabinet meets next.
Among the options to help fill the financial blackhole 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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A public consultation on the proposals ends on Friday. 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 has been suggested by the authority to cut that cash addition, meaning the budget would be based on government allocation alone. With less overall funding, the council would have to review its funding allocation rules to provide to those who need it the most.
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.
A final decision on the scheme’s future would be made next month. 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 ended last week, as did public engagement exercises on another set of budget options, including a cut to the city’s Christmas provision and an end to free city centre parking after 6pm.
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