BT1116 Emergency Funds for people in crisis

The economic impact of COVID-19 has realised an increasing number of families in Luton falling into poverty. Previous analysis has shown that poverty and financial hardship can have an adverse impact on quality of life and opportunities, with many of our most deprived residents facing poorer outcomes relating to health, education and life chances. It is therefore vital that we prioritise services and interventions that prevent our residents from falling into a cycle of deprivation, reduce inequalities and alleviate the impact of poverty. The council recognises that with the effects of Covid-19, the rise in unemployment, escalated property costs and wage growth struggling to keep pace with inflation in Luton, people living in poverty can often pay more for goods and services as they are unable to make up front costs and then find themselves in greater pressures when managing household budgets for essential costs. In light of this, both local and central governments across the country are bringing forward schemes for local welfare support to assist those most in need and with the relevant tools to intervene early and support those most in need, the council hope to put their residents back on their feet. Currently Luton Council operates a discretionary and preventative Local Welfare Assistance scheme providing emergency provision for individuals or families suffering from severe hardship which means that they are unable to source and fund food or utility payments. The scheme does not currently make cash payments but referrals to organisations such as the food bank and/or vouchers for utility payments.