Children at risk of destitution as local services struggle under cost of living

News | Posted on Monday 30 January 2023

Research conducted by our Cost of Living Group shows that there is significant concern about the capacity of local councils and public services to respond to the cost of living crisis.

The research, which is part of the ‘LOcale Authorities and the Cost of Living Emergency (LOCALE) project’, surveyed elected councillors and has revealed that 80% of local leaders in the UK are concerned that children will face a life of poverty as services struggle as a result of the cost of living crisis.

Our researchers interviewed just over 700 members of local councils in the UK via an online panel, where concerns about the longer term impacts on local economies were raised, with three-quarters of councillors agreeing that small local retailers in their area were at risk of closing due to the rising cost of living, with particular challenges to local pubs, cafes and restaurants.

4 out of 5 councillors say children are at risk of destitution in their areas as services struggle to cope with sustained pressures. Only one in five councillors agreed that the government’s Autumn Statement would equip their local authority to respond to the ongoing challenges. The research pointed to the need for policy innovation at a local level to respond to the crisis. 

Some local authorities had established a cost of living fund, while many had set up ‘warm banks’, and dedicated cost of living digital guidance tools for residents in their area.  However, most agreed current efforts would not be sustainable if there were any further ‘financial shocks’ in the future.