Decision Maker: Cabinet

Outcome: Decision approved

Is Key Decision?: Yes

Is Callable In?: Yes

Date of Decision: May 6, 2025

Purpose:

Content: Decision   For the reasons set out in the report and its appendices Cabinet RESOLVED to Agree to:   i)  Accept the Council’s allocation of the Household Support Fund of £5,885,232. ii)  Agree to the distribution of the Household Support Fund of £5,885,232 (to be spent from 1 April 2025 to 31 March 2026) via the approach as set out in Appendix 1. iii)  Authorise the Corporate Director of Inclusive Economy, Housing and Culture in consultation with the Lead Member for Inclusive Economy and Strategic Housing Delivery and Culture, to commence and undertake the roll out of the fund through the Our Newham service, to ensure delivery to residents most in need, by 31 March 2026.   Alternatives Considered   a)  Officers have suggested the distribution of funds as set out in appendix 1 as the most preferred approach. b)  Although this is a discretionary grant, there is guidance which restricts the use of the funding. The DWP guidance states that ‘Authorities have the ability to deliver the scheme through a variety of routes including providing vouchers to households, making direct provision of food, or issuing grants to third parties. Authorities have the local ties and knowledge, making them best placed to identify and help those most in need’. c)  Given the timescales and the significant grant amount we need to identity a suitable distribution method to suit Newham. d)   We have explored 3 distribution options. e)  Firstly - A direct claims approach to the Council where residents are informed of the fund and the eligibility criteria and they simply send in a claim. f)  This approach is not preferred – there are many disadvantages including danger of high demand and a slow response time from LBN with possible reputational damage. Residents may not be aware of the fund or how to apply. g)  Secondly - Outsource the distribution function to a commercial provider. This approach is not preferred because it is a potentially more expensive and time consuming option requiring a significant procurement approach which would allow at best only limited operational time within the distribution period. The provider would likely have no local specialist knowledge, and again it would represent only one route to reach the most vulnerable, seldom engaged residents. It would fail to take advantage of partners in the VCFS who have a track record in working with the Council to distribute hardship funds. The fund would also need to be used to pay a commercial provider which would mean less funding to be distributed. h)  Thirdly - a cross departmental and cross partner approach led by Our Newham that enhances additional Council led hardship funds, but also works with a number of departments within the Council and VCFS to give a variety of routes to reach the most vulnerable, seldom engaged residents as quickly and efficiently as possible. As the funding must be distributed by 31 March 2026, this represents the most efficient time and effective delivery model. i)  This paper recommends the third option - creating a system that identifies and reaches our most vulnerable residents matching demand, supply and speed of distribution optimally whilst working closely with many valued partners.