A study by London Councils into the work done by Local Welfare Assistance in councils is vital in preventing homelessness and requires central government funding. 

London Councils conducted a "first in-depth evaluation of its kind" into council Local Welfare Assistance (LWA) and found that respondents see this service as key in not only preventing homelessness but improving the mental health of those that receive it. 

The study was carried out by research company Policy in Practice and found that LWAs are in greater need than ever due to the cost-of-living crisis, but feared funding pressures may limit their effectiveness. 

London Councils said in a statement on the findings: "This provision is needed more than ever due to the severe cost-of-living pressures facing low-income residents, but warns that tight funding constraints undermine local authorities' ability to offer support. 

"A vast range of events can cause financial crisis and trigger an application for welfare assistance. Examples included domestic abuse, flooding of homes, redundancy, and bereavement.  

"Many applicants had experienced severe delays in receiving benefits payments, suggesting delivery problems in the national benefits system are a factor driving demand for local welfare support. 

"Typically, all other support routes have been exhausted before residents request help from their council.  

"Applicants reported that their only other options would be extremely risky and potentially harmful, including living without electricity, taking out unsuitable loans, and stopping eating. 

"As well as benefiting from the monetary support, LWA recipients reported improved mental health from knowing that a safety net exists and that council staff were working to help them." 

The report concluded that councils were best positioned to deliver emergency support to residents in vulnerable positions and that central government needed to re-establish funding for LWAs, which was abolished in 2015/16. 

Zoe Charlesworth, Associate Policy and Research Lead at Policy in Practice, said: "This research illustrates the importance of having a locally administered safety net for people who are in financial crisis. 

"It evidences the important work done by councils to give emergency help to residents and prevent harmful consequences for families.  

"As vital as this is, dedicated long-term funding is needed to ensure that all councils are able to give support at an adequate level in the future."