An Open Letter to the Tower Hamlets Mayor and Cabinet
Re Advice Services - Mainstream Grants 2013 – 2015
Dear Mayor
We are writing to express our shock and concern at the recommendations of the Third Sector Grants Programme Board to reduce the level of annual funding to the borough’s main advice service providers by 50 to 75%, at a time when this borough’s poorest and most disadvantaged residents are facing a welfare reform programme that will affect thousands of families and individuals.
Funding Reductions
The following agencies are all members of the Tower Hamlets Community Advice Network and all have a strong track record of delivering accessible, quality assured social welfare advice to the diverse communities across the borough:
Island Advice Centre, Chinese Association of Tower Hamlets, Legal Advice Centre, St Hilda’s East Community Centre, St Peter’s Community and Advice Centre, Tower Hamlets Citizens Advice Bureau (CAB), Praxis, OSCA Somali Advice Consortium, Limehouse Project, Bangladeshi Youth Movement Wapping Bangladeshi Association, Account 3, Bromley by Bow Centre, South Bromley Forum, Toynbee Hall and Tower Hamlets Law Centre,
The effect of these cuts will be drastic reductions in services borough-wide at a time of rising need, while some of the busiest and longest-standing advice agencies in the borough face closure.
The agencies listed above all currently receive funding from LBTH mainstream grants to deliver co-ordinated social welfare advice provision across the borough that ensures residents have access to independent advice services 5 days a week
Underspend
The original budget for social welfare advice services in the borough approved by Cabinet in March 2012 was set at £883.000 per annum which was a 6.6% reduction on previous years . However the level of grant for advice services been considered by tonight’s Cabinet is now over 50% less than the advice budget and equates to a reduction in advice funding of between 44 and 75% for the above groups . We find this baffling given your commitment to help residents deal with the impact of welfare reform next year. The proposed reductions in your level of grant funding for advice will mean services will be reduced to one or two days a week day a week ,due to the fact that the above advice agencies will be forced to reduce staff hours and make some staff redundant.
Tower Hamlets Council has a strong record in supporting good quality ,accessible advice services .and in working in partnership with advice agencies to support residents through welfare reform
In the year April 2011 to March 2012, the above advice agencies helped over 25,000 people with benefits, debts, housing, immigration, employment, family, consumer and other problems. In the year April 2013 to March 2014 based on the new funding levels we will only be able to help 11,250.
· In the same year 2011 – 12 these agencies helped local residents to increase their incomes and thus bring wealth into the area of over £15.5 millions, helped over 5000 people to pay their rent and stay in their homes, reduced indebtedness by £200,000. and through this work have helped reduce levels of stress and the associated ill-health.
· In April 2013 the Government is introducing changes to benefits that will adversely affect at least 6000 of the most disadvantaged residents in this borough, reducing incomes, increase debt and potentially increased homelessness. This will create a significant rise in the demand for advice services, while those very agencies that have the experience and skills to meet the demand will in fact be forced to make drastic cuts to their advice sessions and casework staff.
· Other boroughs with similar sizable disadvantaged and poor populations are increasing their spending on advice services: Islington advice budget for 2013 is recommended to be £865000; Camden is £1.3 million per annum and Hackney is almost £1million per annum . We urge you to continue to give the same level of support to THCAN advice agencies to support residents. In this borough
Quality, Experience and Track record
All Tower Hamlets Community Advice Network (THCAN) members hold nationally recognised Advice Quality standards and employ advisers with at least two years experience in delivering welfare advice. The network has established partnerships and referral arrangements with the local authority, hosing providers and local community organisations that ensure high levels of access for residents across the borough, The network provides outreach services across the borough and works in partnership with smaller community organisations in providing access to good quality advice and client care for local residents. By working in partnership the network has reduced the duplication of services and helped to ensure that the majority of funding goes on service delivery rather than office running costs, legal indemnity insurance, staff training etc
Equality and Diversity
We are concerned about the impact of the advice funding recommendations to tonight’s Cabinet on the equality of access across the borough. Tower Hamlets contains many of the poorest and most deprived wards in the country. These are spread across the borough. Yet the distribution of funding is far from equal across the LAPs. We are particularly concerned about provision in the east of the borough which contains a number of extremely deprived wards but where there is a proposed reduction in funding of 75% in both LAP 5 and LAP 6 Those residents most affected by the reduced access will be disabled, people, low income households affected by the welfare reform, particularly those from BME communities.
Loss of other funding for legal advice
The reduction in funding for social welfare law advice to these advice centres is happening at a time when legal aid (LSC funding) for this type of work is also coming to an end. From April 2013 Tower Hamlets Law Centre will lose £450,000 for immigration, education, employment, housing, debt and benefits casework, Citizens Advice Bureau will lose £68,430 for benefits and debt casework and Island Advice will lose £155000; Toynbee Hall will also lose funding This is on top of a 10% cut in the legal aid payments last year that has affected all these agencies. In addition, London Councils funding that supported social welfare law casework in the borough at Toynbee, TH Law Centre and Island Advice is also ending with the money been repatriated to the local authorities.
Due to the reduction in funding to those centres with the expertise and experience to carry on providing benefits appeals, complex debt work and housing advice, the number of Tower Hamlets residents who are able to challenge withdrawal and reduction of benefits, obtain debt relief orders or bankruptcies, and take action to keep their home will be reduced to a minimal level. The support they provide to other non-specialist agencies in taking referrals and advising on complex cases will also be lost. As a result residents in the borough will lose significant amounts of income and support with housing and debt problems which will particularly impact the least advantaged residents.
In light of the damage that will be done to the rights of local residents and the loss of support for them at a time of social crisis, we urge that Cabinet reviews the reduced level of funding recommended to THCAN advice agencies over the next 3 years and restores funding to the previous 2011-12 levels to enable those agencies to continue delivering an essential high quality co-ordinated advice service. This is particularly crucial in light of the continuing adverse impacts of the welfare reform changes and economic recession on the poorest residents in the borough.
Tower Hamlets Community Advice Network