Kensington and Chelsea council criticizes the government for not factoring in housing costs when reviewing local authority funding, resulting in an underreported poverty rate. One-third of children in the borough live in poverty despite surrounding wealth. This oversight may cause London to lose £700 million in funding due to changes in deprivation formulas. Council leader Elizabeth Campbell warns that the proposed funding will harm London boroughs by reallocating funds to less disadvantaged areas, indicating that local contexts are not adequately represented in funding evaluations.
The council of Kensington and Chelsea argues that housing costs are overlooked in government funding changes, leading to miscalculation of poverty levels in London.
Kensington and Chelsea faces losing an estimated £82.7 million over three years due to the government's failure to consider housing costs in funding formulas.
Elizabeth Campbell claims that the funding changes would unfairly shift resources from London councils to other regions, without acknowledging local deprivation needs.
The lack of consideration for housing costs skews figures on deprivation among London boroughs, impacting funding allocations from the government.
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