Billions spent on benefits could be used to transform communities hit hardest by recession
29 October 2009
At a special event at the Houses of Parliament on Monday 2 November 2009, two new reports on how the billions spent on benefits could transform those local communities hit hardest by the recession will be launched.
The first report published by the CREATE Consortium, proposes a Community Allowance that will allow community organisations to pay local people who receive benefits for work that strengthens their neighbourhoods without these payments disrupting their benefits.
The report provides a collection of essays discussing the value of the Community Allowance from a diverse range of political opinion including; Lord Adebowale, Phillip Blond, Sir Trevor Chinn, Hilary Cottam, Julian Dobson, Will Hutton, Glenn Jenkins, Neil O'Brien, Dame Barbara Stocking and Julia Unwin CBE amongst others.
The second report, published by nef (the new economics foundation), uses a Social Return on Investment (SROI) analysis of the Community Allowance, to show that for every £1 invested in a Community Allowance, over £10 worth of social value would be created.
Jess Steele, Chair of CREATE Consortium says, “This is a win-win-win proposal. The Community Allowance helps individuals make progress to become more independent; gets the work that needs doing in poor neighbourhoods done by the people best placed to do it; and channels the energy and trust of civil society towards using welfare spending as an investment in social change rather than a net that traps people in poverty and dependency.”
At a time when economists are predicting that the recession may last longer and be far deeper than anticipated, it is inevitably those living on benefits in deprived communities that suffer the most. It is hoped that as well as transforming benefits spending into an investment in individuals, the Community Allowance will tackle tough social problems such as crime, lack of community cohesion, isolation and poor health.
Also attending the event will be staff from the organisations which the CREATE Consortium hopes will be the first to pilot the Community Allowance; and individuals currently receiving benefits who hope to be able to participate in the Community Allowance.