Unspent crisis funds still available to use

Date published: 17 July 2014


A call for action over the authority’s underspend on crisis funds for the community’s most vulnerable was eventually agreed by Oldham Council last night after the figures involved were amended and it was found that money was still available.

Liberal Democrat councillor Mark Alcock asked if the money had been spent elsewhere and called on the council to lobby the Government to maintain the funding which, he said, should be ring-fenced for welfare spending.

Councillor Alcock said Oldham was awarded £1,038,000 by the Government, yet in the last financial year only £294,038 was distributed to 2,379 people — around £123 per person.

But the figures were adjusted by a Labour amendment which said £188,995 in administration costs should be added to the amount spent. It also pointed out that the award was actually 9 per cent less than the £1,038,000 originally promised by the Department for Work and Pensions.

The Government has announced that no further funding for this purpose will be provided after the current financial year.

Councillor Alcock said: “It’s being cut from next year because of a significant underspend by local authorities across the country.

“Some of the most vulnerable people need it. It’s wrong what the Government is doing, it would be far better if it was ring-fenced and could only be used for the correct purpose.

“It could be spent anywhere so I have no idea where the rest has gone. If it hasn’t been spent then it could do another two years. But if there is none left I want to know what has happened to the remainder.

“I am dismayed that the money looks like it has been swallowed up in the general pot. This is a bad day for the most vulnerable people in the borough.”

However Councillor Abdul Jabbar, cabinet member for finance, said the money remained available and would be spent on those who needed it most.

He also criticised the opposition for not entering negotiations before last night’s meeting in a bid to find an acceptable solution.

Attacking

He said: “Every council has underspent on this. If you came with a cross-party motion that was agreed we would have supported it.

“This has lowered the bar. We have the money and it will be spent actively on welfare for those who need it.

“This is yet another example of the coalition Government attacking the most vulnerable in our society.

“If my colleagues in opposition are concerned as they say are, they should be holding their Government to account.

“Unlike central Government, we are determined to support people who suffer an unexpected emergency or crisis. We offer help in the form of goods, services or vouchers rather than cash where possible.”