Maximising the potential of the Scottish Welfare Fund

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The context

One issue facing housing options teams across the UK is that some people present at too late a stage in a crisis to avert homelessness. In some, or perhaps, many, cases they have sought help somewhere else first, through agencies in the statutory or voluntary sectors. Foodbanks are now well-known and widely available: people in financial crisis, and agencies supporting them, are likely to be aware of foodbanks and make use of them.

There’s arguably less awareness of the Scottish Welfare Fund (SWF): a source of cash-based support in a crisis, which has the capacity and reach to link in with other services offering vital advice and support. North Lanarkshire Council’s model for addressing food poverty, which situates the SWF at the centre, offers interesting learning for holistic prevention.

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The intervention

In 2014, when foodbanks were becoming more busy and numerous across the UK, research was undertaken across North Lanarkshire with people who run and use these services. The Council discovered a wide range of provision, including longstanding services, local faith-based projects and even cupboards in Social Work offices. People using foodbanks highlighted the embarrassment and loss of dignity they experienced, and noted a lack of choice in relation to fresh food. All stakeholders agreed that foodbanks should both be the last resort for people in crisis, and the ambition across the local authority should be to reduce overall reliance on them.

Foodbank staff at the time believed anyone using their service had no other option. The Council decided to explore this, by co-locating a welfare rights adviser in one foodbank. Over a period of nine months, the officer determined 87% of people referred should not have required the service. Many had benefit/allowance shortfalls, were entitled to other, ongoing financial assistance, such as Council Tax support or disability payments, and/or could access a crisis grant (a cash payment) from the SWF. Though co-located welfare advice was successful, the extent of entitlements people were missing out on, coupled with the sheer number of foodbanks, suggested a need for a more comprehensive, authority-wide solution. 

The Council decided to make SWF the central hub through which people get help in a food crisis, launching the Food Referral Gateway in 2015. It enables the right questions on underlying factors to be asked by the SWF, and eligibility for a crisis grant assessed. Where a grant can’t be awarded, the SWF makes a foodbank referral. If someone presents/is referred to a foodbank outwith the Gateway, the foodbank can link into SWF for the same advice. The model ensures sustainable solutions are sought, with crisis grants, not foodbanks, the first option for those in crisis. If needed, SWF refers or signposts people for financial inclusion, debt/budgeting advice, housing support or other help. Where a person’s finances may lead to a housing, not only a food, crisis, they can access timely advice via a single pathway. 

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The outcome

After introducing the Gateway, the Council registered a 22% drop in use of foodbank, and an 87% decrease in referrals from Social Workers, suggesting more sustainable options weren’t being exhausted before that option was taken.

In 2021-22, the Council’s financial inclusion team received 110 referrals through the Gateway which originated as ‘food crisis’. By asking questions on housing, they directly helped just under half of referred households (45%) with Housing Benefit/Universal Credit housing cost issues, leading to total annual income of £134,500. Whilst this does not prove any homelessness was averted, it does model a ‘maximalist’, universal approach to advice for people already in crisis - some of whom will certainly have high homelessness risk factors.

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Key insights

• with its holistic ethos and strong connections to other statutory and voluntary services, the SWF presents an ideal - and unique – opportunity to ‘ask and act’ on homelessness risk factors
• establishing trust and asking the right questions through SWF, rather than emphasising rules, conditions and evidence, maximises chances to pick up and address all root causes of crisis
• ongoing work to promote awareness across agencies of any pathway model is vital

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Find out more…

Amanda Gallagher Cairns, Senior Officer - Financial Inclusion, North Lanarkshire Council
gallaghera@northlan.gov.uk