Call for London boroughs to run benefits

Author: Local Government Chronicle - Mar 15, 2010

Local authorities have urged the government to let them run employment services in London to help cut the capital’s high unemployment figures

London’s under-performing employment services should be devolved to local authorities because they are better placed to meet the needs of local people, say London Councils.

A new report released, Counting the cost, estimated that there are around 1.5m people left without a job in the capital, accounting for nearly a third of the working age population. The combined cost of welfare benefit, rent support, council tax aid and employment services comes to around £5.1bn.

But while national employment programmes have been effective elsewhere, London Councils said that more than 2,000 extra jobs would have been created if London councils were given responsibility for delivering those services, saving at least £8.7m a year.

Stuart Fraser, executive member for economic development, said it was a serious issue: "Boroughs are already in contact with people who are out of work, and given more opportunity from Whitehall, councils can provide unemployed people with a whole package of support which is individually tailored to their training, childcare and housing or health issues.

"People who are not in work often face more than one obstacle which must be overcome before they can move into work. It is the boroughs that are best placed to deliver this personalised service."

The organisation called for the government to devolve financial responsibility for employment services to London boroughs in its Manifesto for Londoners, launched in February.

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