Advice Centres in Derry angry over proposed funding cuts

Advice centres in Derry have expressed disbelief at proposed cuts to services during the Covid-19 pandemic.

There are three recognised advice providers based in the city.

The Derry News has seen a document from an independent consultant who recommended annual funding be reduced for two of the advice centres - Advice NW by £24k and Resource Centre Derry in Carnhill by £11k.

At the same time, the consultant recommended that a third local advice centre, Dove House in the Bogside, receive an uplift of around £35k.

Funding for advice centres is provided by the Department for Communities who have warned of budget constraints this year.

The money is allocated locally by Derry City & Strabane District Council.

Advice centres are given a percentage of the overall funding based on the number of contacts they receive.

In March of this year, the proposed cuts were suspended for three months after objections from local councillors including Shaun Harkin and Emmet Doyle who sit on the Advice Panel within the local council.

The two organisations facing proposed cuts are ‘astounded’ that cuts would be considered at this time.

Derry City and Strabane sits atop tables for deprivation, joblessness and mortality rates.

'TSUNAMI'

Advice services in the city anticipate a ‘tsunami’ of claimants as the government’s financial support - such as furlough - is to be withdrawn shortly.

They say many people could lose their jobs and possibly even their homes if they’re left unable to pay a mortgage.

As a result, thousands will turn to advice providers for assistance with benefits applications.

Manager at Advice NW, Jackie Gallagher, said workers have been overstretched delivering additional council projects such as the Financial Inclusion Project throughout the pandemic.

“Advice North West staff have carried the bulk of this work.  Our staff provide the overwhelming overtime hours. 

“Despite doing this heavy lifting for Council and with staff stretched and at risk of burn out they are now penalised for output in core activities. It is important to add that our core output has increased despite these pressures.

“It is perverse that we are promoting overtime to staff while potentially having to make a staff member redundant if a cut materialises.

“There has been a temporary slowing of work such as that in debt and social security appeals.

“However, a massive increase is anticipated in these areas when government support ends for businesses and individuals and banking support for homeowners and creditors etc (debt work) and when The Appeals Service begins dealing with its stockpiled caseload.”

‘DEMORALISING’

Ms Gallagher questioned why they should be ‘punished’ for re-arranging services, and redeploying staff to take on more generalist roles during a pandemic.

“If the costs per contact/enquiry had have increased, then we would have been in the situation we find ourselves.

“We are of the opinion that never has DCSDC had such value for money in so far as cost per contact.  “The funding pot has remained stagnant and is a little less than its 2015 levels. 

“Contacts have risen and the complexity of the issues presenting have increased.”

She said: “We are dealing with the fallout of real and abject poverty, lack of employment and mental health crisis that this council district disproportionately experiences.

“Furthermore, our rent, overheads, costs of delivery of our services, salaries, workplace pensions etc have steadily increased over that period.  The overall pot is ever decreasing in real value and needs addressed urgently, whether by council or DfC.

“In the long term it is unsustainable. Is it appropriate or sustainable to seek to freeze the cost per enquiry level when workloads and their complexity are ever more demanding and against the backdrop of economic deprivation in which we operate.

“DCSDC are getting the advice sector cheap and we are under resourced. To pass on a second cut is demoralising and unjust.”

Carnhill Resource Centre (CRC) was the only service that remained open for face-to-face contact during the pandemic.

According to Paddy McCarron of CRC, they also distributed around 30,000 meals on wheels to people across the city.

Before the pandemic, he said, the centre was dealing with 30-40 clients but that has increased to around 100.

More people are in need of food vouchers and workers never got a minute.

He said the proposed cut of £11k would lead to the loss of one worker.

“It’s absolutely scandalous.  Why would anyone consider cutting anybody during a pandemic when there is increased unemployment and mental health problems.

“The benefits system will be choked,” Mr McCarron added.

Austerity lies ahead, he explained, and ‘we know it won’t be the rich who suffer, it will be those who are unemployed and those suffering with poor mental health’.

In his view the community sector should be encouraged to work together in partnership, not pitted against one another by creating ‘unhealthy competition’.