Future of the Argyll and Bute Flexible Food and Fuel Fund
Argyll and Bute Council · 20 February 2025
Back to Policy and Resources Committee — 20 February 2025 and its agenda
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ARGYLL AND BUTE COUNCIL POLICY AND RESOURCES COMMITTEE FINANCIAL SERVICES 20 FEBRUARY 2025 FUTURE OF THE ARGYLL AND BUTE FLEXIBLE FOOD AND FUEL FUND 1.0 EXECUTIVE SUMMARY 1.1 The Argyll and Bute Flexible Food and Fuel Fund (FFFF) continues to be a vital resource in addressing food and fuel insecurity, with significant achievements since its inception. 1.2 From January 2021 to October 2024, the FFFF delivered £4.354 million in client gains, supporting approximately 2,000 households and 800 children. The Fund is a key part of the Council’s response to the cost of living crisis, as recognised in the Council’s Strategic Risk Register. 1.3 A contingency plan for funding the FFFF for 2025/26 is outlined, leveraging a combination of the UK Shared Prosperity Fund (SPF) and earmarked reserves for Revenues and Benefits administration works. RECOMMENDATIONS Policy and Resources Committee is requested to approve the plan to extend the Flexible Food and Fuel Fund to 31 March 2026, supported by the following funding sources: • UK Shared Prosperity Fund (60% of £204,000): £122,400 • Earmarked reserves: £189,600 • Total cost for 2025/26: £312,000
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2.0 INTRODUCTION 2.1 The FFFF was established to combat food and fuel poverty exacerbated by economic pressures and rising living costs. The Fund has become an essential service for vulnerable residents of Argyll and Bute, providing direct financial assistance, income maximisation, and debt advice in response to the cost of living crisis. 2.2 However, the Fund faces uncertainty due to the potential depletion of Covid related food and fuel insecurity reserves and unknown future funding from the UK SPF. 3.0 RECOMMENDATIONS 3.1 Policy and Resources Committee is requested to approve the plan to extend the Flexible Food and Fuel Fund to 31 March 2026, supported by the following funding sources: • UK Shared Prosperity Fund (60% of £204,000): £122,400 • Earmarked reserves: £189,600 • Total cost for 2025/26: £312,000 4.0 DETAIL Achievements 4.1 Since its inception, the FFFF has: • Client Gains: Delivered £4.354 million in financial benefits, averaging a return of £4 for every £1 spent. • Households Supported: Assisted 1,982 households, including 800 children. o 1,405 households received direct grant support. o 821 households were supported with income maximisation and financial advice. o A total of 3,258 individuals benefited. • Community Impact: Reduced financial stress, improved well-being, and provided stability to vulnerable households. • National Recognition: Received awards for its innovative approach to tackling food and fuel poverty. Financial Overview 4.2 The projected costs for 2025/26 are as follows: • Contract Costs with Bute Advice Centre: £168,000 (£42,000 per quarter, used to employ 2FTE Welfare Rights Officers and 2 FTE Energy Advice Assistants to support referrals to the FFFF made by from Community Foodbanks or from the Council’s Scottish Welfare Fund team). • Grant Costs, the value of grants paid by the Council’s benefits team to households to cover immediate food and fuel cost hardship and
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incentivise them to engage with advice agencies for wider support (£12,000/month): £144,000 • Total Cost: £312,000 Funding Sources 4.3 The UK Government has confirmed the funding available to the Council through the UK SPF in 2025/2026 and colleagues in Economic Development have confirmed that £122,400 can be made available for FFFF in the year. 4.4 Revenues and Benefits management has identified £189,600 of earmarked reserves. These funds were initially allocated by both the UK and Scottish Government for works carried out by staff delivering various temporary grant schemes related to Covid recovery and the cost of living crisis on their behalf, these schemes are listed in paragraph 4.6. These grant schemes have now closed and the work complete. As these earmarked funds were received after the work had been completed these are now surplus funds and can be reallocated. 4.5 Reallocating them to support the Flexible Food and Fuel Fund is both pragmatic and aligned with Council priorities, given the fund’s links to the original purpose of these monies and its role as the primary cost-of-living mitigation support scheme as outlined on the Council’s Strategic Risk Register. 4.6 The proposed funding plan includes: • UK Shared Prosperity Fund: Funding for 2025/26 Estimated at circa 60% of £204,000 (£122,400). • Earmarked reserves for monies received by the Council for the delivery of Covid and Cost of Living Fund supports to the public after the pandemic: o Cost of Living Payments for Council Tax: £72,600 o COVID Tier 4 funding for vulnerable people: £32,000 o Pandemic Support payments: £52,000 o Admin funding for the UK government department for Business, Energy and Industrial Strategy (BEIS) energy grants: £33,000 o Total reserves: £189,600 • Total funding; o UK SPF £122,400 o Reserves £189,600 o Total - £312,000 Beyond March 2026: Future Funding Opportunities 4.7 The Council, in collaboration with its partners Bute Advice Centre and ALIenergy, is actively exploring longer-term funding options to sustain the FFFF. A promising opportunity is the newly launched Fairer Life Chances programme by the Big Lottery Fund. This programme supports projects aimed at improving outcomes for children, young people, and families, or enhancing
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health and access to support for individuals experiencing poverty, disadvantage, or discrimination. 4.8 The fund offers grants of up to £500,000 for projects spanning up to five years. While most awards are expected to be smaller than the maximum amount, the programme encourages match funding from applicants, which aligns well with the Council’s ability to use earmarked reserves outlined in 4.6 above, as a match funding source. 4.9 There is no specific deadline for this programme, allowing applications to be submitted at any time. If the Council supports this funding proposal, preparations will begin to develop and submit an application, leveraging existing reserves to maximise the chances of success. Should any application made to the programme be successful we will return to the Council with plans to extend the FFFF beyond 31 March 2026. Next Steps 4.10 The next steps include; 1. Extend the existing contract for the delivery of FFFF with Bute Advice Centre for a further year to 31 March 2026. 2. Engage Funding Bodies: Continue discussions with the Big Lottery Fund and other organisations about funding to support the service beyond March 2026 as necessary. 3. Prepare Contingency Plan: Finalise plans to address any shortfall in funding beyond March 2026 however if no additional funding is identified for beyond March 2026 the Fund will come to an end at that point. 5.0 CONCLUSION 5.1 The Flexible Food and Fuel Fund (FFFF) has delivered exceptional value to the community, supporting nearly 2,000 households and achieving significant financial gains. It plays a central role in the Council's response to the cost of living crisis, as reflected in the Strategic Risk Register, and is integral to addressing food and fuel insecurity in Argyll and Bute. 5.2 Despite its successes, the Fund faces funding uncertainty, with a critical gap projected for 2025/26. The proposed contingency plan ensures the continuation of this essential service for one additional year, leveraging existing reserves and anticipated UK SPF allocations. Sustaining the FFFF reinforces the Council’s commitment to mitigating the impacts of economic pressures on its residents while aligning with its strategic objectives. 5.3 Looking ahead, the Council remains dedicated to securing sustainable funding solutions to ensure the FFFF continues to support vulnerable households in the face of ongoing economic challenges.
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6.0 IMPLICATIONS 6.1 Policy - The continuation of the Flexible Food and Fuel Fund aligns with the Council’s strategic objectives to mitigate food and fuel insecurity and address the cost-of-living crisis. This proposal reinforces the Council’s commitment to supporting vulnerable households and is in line with the priorities identified in the Strategic Risk Register. 6.2 Financial - The proposed funding model for 2025/26 utilises £189,600 in earmarked reserves and £122,400 from the UK Shared Prosperity Fund. This approach ensures no additional burden on the Council’s general fund while sustaining an essential service. 6.3 Legal - Extending the contract with the Bute Advice Centre for an additional year requires compliance with procurement regulations and Council governance procedures. Legal services will ensure all agreements are executed appropriately. 6.4 HR - No direct HR implications arise from this proposal. However, the continuation of the FFFF ensures that partner organisations, such as Bute Advice Centre, can maintain staffing levels to deliver the service effectively. 6.5 Fairer Scotland Duty: 6.5.1 Equalities - The FFFF promotes equality by directly supporting households with diverse needs, including those with protected characteristics. The service’s accessibility ensures broad reach and impact. 6.5.2 Socio-economic Duty - The Fund addresses socio-economic inequalities by targeting food and fuel poverty among vulnerable households, directly improving quality of life and reducing hardship. 6.5.3 Islands - The FFFF’s support extends to island communities within Argyll and Bute, ensuring that these geographically isolated areas are not disproportionately impacted by food and fuel insecurity. 6.6 Climate Change - While the FFFF does not directly address climate change, its focus on fuel poverty indirectly contributes to sustainable energy use by promoting income maximization and efficient energy utilization among households. 6.7 Risk - Failure to sustain the FFFF poses significant reputational and operational risks to the Council, particularly given its designation as a key mitigation strategy within the Strategic Risk Register. The contingency plan reduces these risks by securing funding for 2025/26. 6.8 Customer Service - The continuation of the FFFF ensures uninterrupted support for residents, enhancing the Council’s responsiveness to community needs during the ongoing cost-of-living crisis.
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6.9 The Rights of the Child (UNCRC) - By supporting over 800 children through the FFFF, the Council demonstrates its commitment to upholding children’s rights, including the right to adequate food, health, and well-being, as outlined in the UNCRC. Kirsty Flanagan, Executive Director with responsibility for Finance Councillor Ross Moreland, Policy Lead for Finance and Commercial Services 13 January 2025 For further details or discussion, please contact Fergus Walker, Revenues and Benefits Manager, Financial Services; 01586 555237 Fergus.walker@argyll-bute.gov.uk