People on Housing Benefit could face delays in getting their payments after the Government cut £162,000 from the annual grant it gives the council.
Caerphilly County Borough Council’s subsidy in 2010-11 will be £1,666,577 – an 8.9% cut by the Department of Work and Pensions (DWP) from £1,829,095 in 2009-10.
The formula for the grant is based on a number of factors such as caseload, caseload make-up, accommodation and labour costs.
The council expects to pay out £65m in benefits by the end of this current financial year. Because of the recession that has been rising significantly.
Councillor Colin Mann, deputy leader of the Plaid Cymru-led council and cabinet member for finance and resources, said: “The DWP has ordered a 5% per annum cut in the administrative grant over three years.
“This is continuing irrespective of the significant increase in volume of cases dealt with by this council and many other local authorities. Caseloads have been running at an all time high.
“The real terms cash cut year-on-year of £162,518 represents an 8.9% cut and is the equivalent of an almost a 10% reduction in staff numbers during a very difficult economic situation where there is rising demand from the public.
“As a result of the cut, we will have to consider reducing staff numbers and that will mean people in desperate need having to wait longer for their benefits.”
Many Welsh authorities have also been hit with cuts.
Council leader Lindsay Whittle, Plaid Cymru’s Prospective Parliamentary Candidate for Caerphilly, said: “It is frankly staggering that the London Department of Work and Pensions should be continuing to cut funding to local authorities at a time when more people are seeking housing benefit because of their circumstances. It makes no sense and is really cuts for cuts sake.
“I am concerned that these continuing cuts will affect service to the public. As for the formula used for funding it is like most things in benefits too complicated and needs to be rationalised – but not at the expense of the public.”
A DWP spokesman said: “Work has been ongoing to reduce the burden of work and administrative cost for local authorities.
“Working with councils we review the distribution of funding each year, taking into account workloads and local needs. Because of the recession we have increased our financial support for Housing Benefit and Council Tax Benefit in areas where it is needed.”