London boroughs report a 219 per cent increase in demand for local welfare assistance as a result of COVID-19

Figures highlight an urgent need for the government to improve universal credit and restore national funding for local welfare, says London Councils

London boroughs have reported a 219 per cent increase in demand for local welfare assistance over the early weeks of the coronavirus (COVID-19) lockdown.

New analysis from London Councils - a cross-party organisation representing all 32 boroughs and the City of London Corporation - highlights that, between March and June 2020, boroughs received 25,569 applications for local welfare assistance, and paid out almost £2.3 million, mostly in one-off payments in kind, or cash, for emergencies. This compares to 8,005 applications received over the same period in 2019 that resulted in awards totalling £857,500.

Warning that universal credit does not provide enough support for many Londoners, London Councils says that it is concerned that the combination of a second wave of coronavirus and continuing job losses mean the situation will worsen in the coming months.

As a result, calling on the government to restore national funding for local welfare assistance, Councillor Muhammed Butt, London Councils’ executive member for welfare, empowerment and inclusion, said -

'The ongoing COVID-19 crisis has brought severe financial hardship to many Londoners and an enormous surge in people approaching their local borough for help.

A second wave of the virus means that economic pressures are bound to get worse ...

These figures demonstrate that councils are an essential part of the welfare safety net – but they also show that universal credit isn’t enough to support households facing financial crisis.

We urgently need the government to improve universal credit and to restore councils’ funding for local welfare assistance. These measures are crucial for helping struggling Londoners. Without a more effective welfare response to the pandemic, boroughs fear the coming months will only bring an increase in financial hardship and further spikes in poverty and homelessness.'     

For more information, see Covid-19 triggers 219% increase in demand for local welfare assistance in London from londoncouncils.gov.uk