1. Questions to the Minister for Finance and Local Government – in the Senedd at on 14 June 2023.
4. What discussions has the Minister had with the Minister for Social Justice regarding the need for additional allocation of finances for local authorities to support vulnerable residents? OQ59662
We have provided over £3 billion of support to those most affected by the cost-of-living crisis, including support channelled through local authorities. I continue to engage closely with the Minister for Social Justice on this issue, including through our work as members on the cost-of-living Cabinet sub-committee.
Thank you very much for that response, Minister.
The upcoming refresh to the child poverty strategy scheduled for autumn this year presents an opportunity to really think ambitiously about the ways that this long-standing issue can be tackled. It is, of course, a responsibility that will cut across Government budgets and a variety of portfolios. Now, with local government settlements stretched, charities such as Barnardo’s Cymru are calling for the Welsh Government to ring-fence funding for local authorities directed at supporting children in poverty, as well as further investment in local government-administered services such as Flying Start and Families First. So, with the renewed strategy around the corner, have you discussed with the Minister for Social Justice whether additional resources will be allocated and ring-fenced for measures such as these?
Thank you for the question. So, we are working with partners, and with over 3,000 children, actually, to deliver that strategy, and also working with the organisations in the sector. The strategy that we will consult on sets out what we’ve heard, what we’re doing about it, and where we’ll be focusing our efforts in future. The aim then is to produce that final strategy by the end of this year and work with partners to deliver that strategy.
What I would say in terms of ring-fencing funding, actually that moves in a different direction to that which we’re taking at the moment, so we have a programme for government commitment to reduce the administrative burden on local authorities. So, Welsh Government officials held a number of important meetings with local authorities. I’ve spoken to leaders, they’ve spoken to the Society of Welsh Treasurers, and have concluded that one of the biggest burdens administratively on local authorities was the way in which we deal with grants. So, we’re actually going through a process at the moment of reviewing our grants in Wales along the lines of considering whether these grants can be moved into the RSG without having an impact on delivery, because some of the grants that we deal with are very small and probably disproportionate, I think, in terms of the industry of work that is created to administer those grants. So, we are moving in a different direction; it’s more about that trusting relationship that we have with local government. But that said, when we do consider individual grants, we do so having a full impact assessment, because obviously, we don’t want to be doing anything that causes harm to those people who we’re trying to support. So, this is a piece of work that is just starting at the moment, but just to say, really, our broad direction is about the dehypothecation rather than ring fencing.
Minister, last week, the older people’s commissioner said that the cost-of-living crisis meant that activities that help prevent loneliness are no longer affordable for older people. The commissioner said that support for community groups and volunteers working to combat loneliness is so important as we face the cost-of-living crisis. Minister, what considerations have you given to providing ring-fenced funding to local authorities to enable them to support community groups tackling loneliness and isolation, especially as many councils continue to cut back on services such as day centres and libraries?
I would refer the Member to the previous question in terms of our approach to ring fencing of funding and that we're moving in a different direction, really, about having that relationship of trust with local authorities, understanding that they know their communities best and that we don't want to be taking officer time up with filling forms in when it's disproportionate to do so. So, we are moving away from that ring fencing where possible and where it is appropriate to do so—it won't be in all cases.
But the point that you make really is about how we support older people through the cost-of-living crisis. I think one of the important things that we did was introduce the grant funding to local authorities to set up warm hubs. I know they've been absolutely invaluable for older people in particular across the winter, but actually some of those hubs are now continuing as welcome spaces, and they're continuing right through the summer and potentially beyond, to provide that place for people to go—older people, of course, but others too, to try and alleviate some of that loneliness and isolation that people are feeling. Again, it's something that I know is a real priority for the Minister.