Ministers right to remove grant ring fence, says committee

2 Nov 09
MPs have endorsed the removal of the ring fence from the Supporting People grant for vulnerable people
By Vivienne Russell

3 November 2009

MPs have endorsed the removal of the ring fence from the Supporting People grant for vulnerable people.

The decision to  remove the ring fence, announced in April’s Budget, prompted concerns that funding for the services could be lost over time. Projects funded by the scheme help vulnerable people live more independently.

But an inquiry by the Commons communities and local government select committee concludes that the financial flexibility councils would gain from the change was ‘well worth having’. However, it stresses that Supporting People services must be protected, particularly in a climate of tightening council budgets.

Its report, published today, praises the Supporting People programme, noting that it had produced savings of £3.4bn for a £1.6bn annual investment. But it said there was no need for the programme to be placed on a statutory footing.

Committee chair Phyllis Starkey said: ‘Fears about the potential for loss of funding must be countered by maintaining high levels of transparency, rigorous service delivery and strong monitoring frameworks so that the Supporting People programme continues to deliver vital service to some of the most vulnerable in our society.’

The committee is calling for greater financial disclosure, with Whitehall setting out how much money it provides for Supporting People within each local area-based grant.

‘Local authorities should be free to manage their own budgets, but must then be prepared to justify any decisions to redirect Supporting People funds to deliver other locally targeted services,’ Starkey said.

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