Services in Wirral may need to be cut back as the borough battles with the cost of living crisis.
A council report said services will need to be cut if more support is needed in October and that “current budgeted funding streams that the council holds are not sufficient to support any further impact."
The report said: "Any additional funding aligned to support the crisis will have to be found from reducing or stopping other services and functions that the council currently provides.”
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The report said the cost of living is having a direct impact on the council’s budget, which is currently supported by one-off funding and any ongoing impacts “increases the 2023/24 budget gap to unprecedented levels.”
The report says the cost of living crisis is in its early stages with a peak expected in October with the expected rise in the fuel price cap. The council expects over 60,000 households in Wirral to be classified as being fuel poor, just under 20% of all homes.
The council said the number of people using online self help resources had increased by 22% since 2021 and that other services, including Citizens Advice, had seen an increase. The report also said a survey found cuts to Universal Credit in 2021 and price increases in March 2022 had “negatively impacted on their financial situation.”
A recent pay offer made to council workers may also have an impact on council budgets according to the report and services will need to be reduced to afford the impact of this. Wirral’s Unison branch is recommending council workers reject the pay offer claiming it is a pay cut due to rising inflation.
The Policy and Resources Committee is meeting on August 31 to address the cost of living and rapidly rising inflation. The report recommends the committee declare the cost of living as a crisis and a top priority for the council.
The “extraordinary meeting” was requested by Wirral Council leader Janette Williamson to “understand and evaluate what support is already available and provided by the Council.” Cllr Williamson has written to Chancellor Nadhim Zahawi to request more funding to address the cost of living and called it “ the biggest crisis I have witnessed personally and as a politician.”
The report warned there could be long term impacts if the Council did not respond to the crisis and must take a leadership role.
A cost of living action group has already been established which is chaired by the Chief Executive of Wirral Council Paul Satoor.
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