Funds allocated to support struggling households have fallen by 21% over the past two years, according to new Freedom of Information data.
The figures obtained by digital gifting platform Prezzee highlight the growing challenge facing housing associations and local authorities as demand for support continues to rise, it says.
Analysis of responses from local authorities across the UK found combined funding for Local Welfare Provision and the Household Support Fund has fallen by 21% since 2023/24. This comes at a time when housing providers are supporting increasing numbers of residents facing financial hardship amid ongoing cost-of-living pressures; with UK prices for everyday items rising by 2.8% in the year to April.
Against a backdrop of rising demand for emergency assistance, housing associations are under growing pressure to maximise the impact of every pound spent. In the first six months of 2024, Citizens Advice supported over 50,000 people with localised social welfare issues, 17,200 more than in the same period in 2023 and twice as many as in early 2022.
Alongside funding constraints, organisations must ensure support reaches recipients quickly to maximise customer outcomes.
One organisation expediting the delivery of emergency funds is Hafod, a housing provider based in Cardiff. Through a digital-first redesign, Hafod reduced administrative time associated with distributing emergency support by almost 90%, while cutting colleague-related costs by more than 85%. Ensuring emergency funds got to those that needed them immediately.
The move by Hafod also improved visibility and accountability throughout the process. Rather than relying on physical vouchers, teams were able to track delivery and redemption in real time through a central dashboard, reducing the risk of lost vouchers and eliminating the need for manual purchasing, monitoring and reissuing.
For residents, the approach provided greater flexibility and dignity, allowing recipients to choose how and where they spent their support from a range of approved retailers.
James Malia, President UK & Europe at Prezzee, said:
“The findings highlight the difficult environment many housing associations, councils and support providers are operating in. Funding is being cut yet demand for assistance is only growing.
“In this environment, organisations need to maximise the value of every pound they spend. Reducing administration, improving auditability and ensuring support reaches those in need immediately. The organisations achieving the greatest impact are increasingly those finding smarter, more efficient ways to deliver assistance while maintaining transparency and accountability.”
Michelle McGregor, Community Engagement Manager at Hafod, said:
“Like many housing associations, we're continually looking at how we can deliver the greatest possible support to our customers while making the best use of available resources.
“By modernising how we distributed support through our recent campaign with Prezzee, we significantly reduced administrative burdens, improved oversight and gave customers greater choice over how they used their support. The time saved meant colleagues could spend more time supporting people directly and less time managing paperwork, helping us maximise the impact of the resources available.”
