Posted: August 3rd, 2023 12:12pm +00:00

How is the cost of living crisis affecting risk management within local authorities

Key risks facing local authorities

The cost of living crisis is affecting the risk registers of local authorities. Some of the key risks that have been identified include:

  • Increased demand for social care services: As people struggle to afford the rising costs of living, they are more likely to need help with things like food, housing, and healthcare. This is putting a strain on local authority budgets and resources.
  • Increased crime: The cost of living crisis is also leading to an increase in crime, as people resort to theft and other criminal activities to make ends meet. This is putting pressure on local authority police forces and other criminal justice agencies.
  • Increased poverty and deprivation: The cost of living crisis is widening the gap between rich and poor, and it is leading to an increase in poverty and deprivation. This is having a negative impact on the health and wellbeing of people in local communities.
  • Increased social unrest: The cost of living crisis is causing widespread anger and frustration, and it is raising the risk of social unrest. This is something that local authorities need to be prepared for.
  • Increased homelessness: The rising costs of housing are making it more difficult for people to afford to rent or buy a home. This is leading to an increase in homelessness, which is a major risk for councils.

Mitigating the risks of the cost of living crisis

In response to these risks, local authorities are taking a number of steps, including:

  • Reviewing their budgets and services: Local authorities are reviewing their budgets and services to see where they can make savings and ensure that they are still able to provide essential services to people in need.
  • Working with partners: Local authorities are working with partners, such as the voluntary sector and businesses, to develop new ways to support people who are struggling with the cost of living.
  • Providing information and advice: Local authorities are providing information and advice to people about how to manage their finances and access support.
  • Reprioritising services: Councils are reviewing their services to ensure that they are meeting the most pressing needs of their residents. This may involve redirecting resources from less essential services to those that are more in demand.
  • Lobbying for government support: Councils are lobbying the government for more support to help them manage the cost of living crisis. This may involve asking for additional funding or changes to welfare benefits.

Protecting communities from the worst effects of the crisis

The cost of living crisis is a complex and challenging issue, but local authorities working with partners to support people who are struggling. By taking steps to mitigate the risks and provide support, local authorities can help to protect people and communities from the worst effects of the crisis.

In addition to the risks mentioned above, the cost of living crisis is also affecting local authorities in other ways. For example, it is making it more difficult to recruit and retain staff, and it is increasing the cost of providing services. As a result, local authorities are facing a number of financial challenges.

Despite these challenges, local authorities are determined to continue to provide essential services to people in need. By working together with partners, they can help to mitigate the risks of the cost of living crisis and support people who are struggling.

Risks are everchanging and the prioritisation of different risks changes often too. Ensuring that the whole organisation is aware of the evolving risk landscape and how they can positively impact the management of risks is vital for the overall success of the local authority.

 

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