The Overview & Scrutiny Committee met to discuss the impact of the cost of living crisis on Tower Hamlets residents and the support measures in place. The committee heard from various council officers and representatives from local community organisations who detailed the challenges faced by residents and the services being provided. Key discussions revolved around the effectiveness of current support packages, the need for increased funding for advice services, and the impact of national policies on local poverty levels.

Cost of Living Crisis Support

Councillor Saeed Ahmed, Cabinet Member for Resources and Cost of Living, introduced the report on the council's efforts to mitigate the impact of the cost of living crisis. He highlighted that tackling this issue is central to the council's strategic plan, with initiatives including £4.3 million in cash-first payments from the Government's Household Support Fund, a council tax freeze, and free school meals for all young people.

Ellie Cashel, Director of Integrated Growth and Development, elaborated on the council's approach, explaining that the Household Support Fund has largely been distributed as direct grants to residents, with targeted interventions for specific cohorts such as those eligible for pension credit or Healthy Start vouchers. She also mentioned the council's food hub, which has provided over a million meals, and its food pantry scheme. Cashel noted the uncertainty surrounding future government funding, particularly the cessation of the Household Support Fund, which makes long-term planning difficult.

Councillor Chaudhary raised concerns about the impact of Universal Credit policies, such as the five-week wait, digital-by-default delivery, and the two-child limit, on families facing the cost of living crisis. Councillor Saeed Ahmed acknowledged that these are government policies outside the council's direct control but stated that the council targets support through schemes like school vouchers and the resident support scheme for those not automatically eligible.

Regarding private rental costs, Councillor Francis inquired about support for residents facing unaffordable rents. It was explained that the homelessness team is developing schemes to assist with housing costs, and a portion of the Household Support Fund has been added to the council's discretionary housing payment pot to provide more flexible support.

Support for Vulnerable Groups

Several councillors raised specific concerns about vulnerable groups. Councillor Francis highlighted the challenges faced by individuals on spousal visas with No Recourse to Public Funds (NRPF) restrictions, particularly concerning children's access to support and parents' language barriers. It was clarified that while this specific team has limited work on NRPF cases due to funding restrictions, adult social care manages budgets for such households. The Household Support Fund has been made accessible to these individuals through the resident support scheme.

The issue of care leavers was also raised, with concerns about their ability to access employment opportunities due to a lack of funds for travel. It was confirmed that the employment service, which falls within Ellie Cashel's remit, provides advice and support to the Work Path team. Care leavers have received funding from the Household Support Fund for energy bills and service charges, and the employment service has received funding to assist with immediate costs like travel and clothing.

Councillor Sabina Khan raised concerns about disabled residents, particularly those with prepayment meters, facing difficulties with energy bills. While there isn't specific support for this cohort, the resident support scheme offers payments for gas and electricity, and the Bromley by Bow Centre has received a grant to support energy advice.

Councillor Malik inquired about the link between the cost of living crisis and an increase in local crime and theft. It was stated that this data is not specifically held by the current team, but the community safety team would be asked to provide a response.

Advice Sector Support

Representatives from the Eastern Citizen Advice Bureau (CAB) and the First Love Foundation presented their work and the challenges they face. Ali Halil from Eastern CAB highlighted the excess demand on their services, with a 36% increase in cases compared to the previous year. He noted that the partnership has seen a reduction in funding from £920,000 to £720,000 without inflationary increases, making it difficult to meet the growing needs. The CAB partnership deals with over 14,000 clients annually, generating over £16 million in monetary income for clients.

Denise Radley and Anika Olaitun Omoli from the First Love Foundation explained their transition from a food bank to a specialist legal advice service. They reported a significant increase in clients presenting with debt and housing issues, with 40% of their current caseload stemming from these problems. They highlighted the struggle to secure adequate funding, with a recent grant covering only about a month and a half of their running costs. They stressed the need for more support from the local authority, noting that the advice sector is on its knees and operating at 140% capacity.

Both organisations emphasised the breakdown in communication and collaboration with the local authority since the COVID-19 pandemic, which has created gaps in information sharing and support. They requested increased funding and better coordination between the council and advice services to ensure residents receive timely and comprehensive assistance.

Food Poverty and Support

Steve Gilman, Chair of Boer Food Bank, and Dr Iram Ali, Trustee, provided an update on their services. They reported a significant increase in demand, with the number of families supported weekly rising from around 450 to 500-550. They noted that the root causes of food poverty are largely a consequence of national policy, but local service organisation also plays a role. Boer Food Bank is planning to move to a larger site to offer more comprehensive support, aiming to become a support network marketplace.

They highlighted the increasing complexity of client needs, with many now requiring ongoing support rather than just emergency food parcels. They also pointed out the strain on their resources due to an increase in clients from outside the borough. Their primary ask was for better coordination across the borough for all advice and food services, and for the council to act as a feedback mechanism on the impact of local and national policies.

Council's Response and Future Actions

Councillor Saeed Ahmed acknowledged the significant work being done by community organisations and the challenges they face. He stated that the council is committed to doing as much as possible to support residents, citing initiatives such as the council's food aid programme, free school meals, and education maintenance allowances. He agreed that coordination between organisations is crucial to ensure residents receive the help they need efficiently and without duplication.

The committee members expressed their commitment to taking the testimonies and feedback forward. Councillor Francis suggested that the committee's function should be to allow evidence from organisations and residents to shape policy and recommendations, focusing on prevention and policy rather than solely on funding food banks. Councillor Asma Islam proposed that the council should look into bringing all organisations together for better coordination and to identify gaps in service provision. Councillor Francis also recommended that the council continue to offer cash support to food banks, address the removal of funding for TCAN (Tower Hamlets Community Advice Network), and consider uplifting contracts for advice services in line with inflation.

The Chair, Councillor Musthak Ahmed, agreed to take these points forward, suggesting that reflections could be submitted in writing, included in the budget report, or presented as a separate paper to the cabinet. He also noted the opportunity for the chair to feed initial points back to the cabinet. The committee acknowledged the need for a more coordinated approach and a focus on preventative policies to address the root causes of poverty.