Source · Select Committees · Housing, Communities and Local Government Committee
Recommendation 16
16
Accepted
Paragraph: 64
Establish a new DFG distribution formula based on local need, population, income, and regional building costs.
Recommendation
We welcome the Government’s decision to increase overall DFG funding allocations to local authorities in 2023/24 and 2024/25. However, the current DFG distribution formula is unfair and does not distribute funds according to local need. Oxford City Council sets a good example for how local authorities across England should develop local policies to offer small discretionary grants to support the wider needs of disabled people. The Government must establish a new distribution formula which is clearly based on local need and therefore fairer. In particular, the new formula must distribute funding with consideration for the current and projected number of disabled people; average income; and regional building costs in each local authority area.
Government Response Summary
The government acknowledges the DFG distribution formula is outdated, commits to reviewing how funding is allocated based on local need, and plans to consult on a new formula during 2025 with the aim of adopting it as soon as possible.
Paragraph Reference:
64
Government Response
Accepted
HM Government
Accepted
33. As set out in the 2018 review, the current allocation formula for the DFG dates back to 2011. This government acknowledges that the formula is out-dated and does not fairly reflect current local need. We intend to review the way that funding is allocated to local authorities in England, taking into account demographic and economic changes since the current approach was established in 2011. This review will consider local variations in disability prevalence, income and regional building costs. Government proposes to consult on a new formula during 2025 with the aim to adopt a new approach as soon as possible.