Lambeth launches credit crunch taskforce » Housing » 24dash.com

A food co-operative, a rescue plan for struggling homeowners and an Energy Action Zone to save on fuel costs are among the initiatives recommended by Lambeth Council following the publication of a report by its Credit Crunch Taskforce today.

Councils should also be able to offer mortgages to help first time buyers, the report declares, and it recommends that the government should be lobbied for funds to enable this.

The taskforce, which is believed to be the only one of its kind in the country, was set up in a bid to help residents through the current global financial crisis.

The recommendations follow extensive research with local residents, financial experts and other councils. While so far the crunch does not appear to have had a significant impact in Lambeth, figures show the number of people claiming unemployment benefits is up 6 percent from the beginning of the year, and the council has received a small but increasing number of reports from local businesses asking for hardship support.

In the longer term the research says the impact of the credit crunch on Lambeth residents could include:

• A reduction in affordable homes for social housing tenants, who make up 26 percent of Lambeth households
• Increasing costs in the private rented sector for single house sharers and young professionals and families (48 percent of households)
• A reduction in take up of services for local businesses

As a result, the report outlines sixteen recommendations to help residents get through any financial difficulties.

The report says, “Food prices in shops and supermarkets have risen 8.3 per cent this year“ therefore, bulk buying essential food and household products would reduce costs and be of real value to hard-pressed consumers.

The taskforce suggests that community co-ops or buying groups could be set up through neighbourhood links, using the borough’s Lambeth First partnership, bringing together a wide range of private, public, voluntary and community organisations.

The adoption of a Housing Rescue and a Rent to Buy scheme is also high on the taskforce’s priorities. This would help homeowners to avoid repossession or forced sale by selling a share of their house to a housing association to which they would then pay a subsidised rent. More shared ownership properties are also recommended, in partnership with housing associations.

In addition, the taskforce recommends extending the existing Home Visitors scheme with an Energy Action Zone.

At present the visitors give householders energy advice in their own homes and identify measures, which can increase energy efficiency and reduce bills. The new Zones would focus on people vulnerable to fuel poverty and would achieve energy savings through referrals, advice and the offer of free energy efficient light bulbs.

Lambeth’s Every Pound Counts project has already assisted over 1500 people to claim over £1.5 million extra welfare payments to which they were entitled. Over half of this is income from key disability benefits. But the council knows that a large number of people are still not claiming all the benefits to which they are entitled. The taskforce recommends the expansion of Every Pound Counts, particularly by going into housing estates and communities.

“Lambeth Council has a healthy financial position because of strict financial discipline and efficiency savings, “ said Councillor Jim Dickson, Chair of the Credit Crunch Taskforce. “but like all local authorities, we have inevitably been hit by rising fuel costs and energy bills “ he pointed out.

“Our aim is to prevent people falling into a never ending debt spiral and turning to loan sharks. We hope to do this through a variety of measures. If we succeed, the taskforce’s effects will be seen in homes across Lambeth, “ stated Councillor Dickson.

Anna Turley, Deputy Director of the NLGN and member of the taskforce said: “We found up to 50% of individuals still don’t claim their fair share of benefits and help. That’s unacceptable and Lambeth’s report is leading the way. Councils need to work harder in communities, through children’s centres, GPs surgeries and places where people meet up to help residents get what they are entitled to.

"It is ideas like this that will make a real difference to people in tougher times and I hope that the report will be not just implemented by Lambeth but considered by other local authorities as well.”