How Local Authorities Can Unlock Community Wellbeing

The scale of the challenge makes that intelligence more urgent than ever. Nearly half of people in problem debt also have a mental health problem, and those with depression and problem debt are over four times more likely to still have depression 18 months later than those without financial difficulty.  

Meanwhile, almost 3.8 million adults in the UK experience chronic loneliness, with lonely individuals more than twice as likely to be diagnosed with depression compared to those who feel well connected. The cost of poor housing to the NHS alone is estimated at £1.4 billion every year. These statistics represent the sheer volume of people walking in and out the doors of council services day after day. 

Yet this rising demand, constrained budgets, and growing complexity mean that Local Authorities cannot, and arguably should not, try to do everything themselves. This is where a stronger, more strategic partnership with the Voluntary, Community and Social Enterprise (VCSE) sector becomes not just desirable, but essential. 

Unlike NHS organisations, Local Authorities carry a broad duty of care that spans the full spectrum of life's pressures. When a resident is evicted, falls into debt, loses their job, or becomes isolated following bereavement, it is often the council that picks up the pieces, whether through housing services, adult social care referrals, or community support teams. 

These are not separate problems either. Research consistently shows that poor housing, financial insecurity, and social isolation are among the strongest drivers of poor health outcomes. A resident in rent arrears is more likely to experience anxiety and depression. Someone living in damp, overcrowded accommodation faces higher risks of respiratory illness. Someone without social connection is significantly more likely to experience serious mental health decline. 

Local Authorities understand this complexity intuitively. The opportunity lies in building the infrastructure and the partnerships to respond to it systematically rather than reactively. 

VCSE organisations often reach people that statutory services simply cannot. They operate from places of trust: the community centre, the food bank, the faith group, the local befriending charity. They move faster, adapt more readily, and frequently engage people who are reluctant to approach a council office or GP surgery. 

For Local Authorities looking to get ahead of demand rather than just respond to it, the VCSE sector represents an extraordinary resource. Community organisations are already delivering debt advice, housing support, employment coaching, mental health peer support, and social activities that reduce isolation. They are doing this work. The question is whether councils are connecting with it effectively. 

This is where a shift in thinking is needed. Rather than viewing VCSE organisations as a network to refer to occasionally, Local Authorities have an opportunity to position them as active delivery partners within an integrated community wellbeing model. That means investing in the relationship, sharing data where appropriate, and building joint referral pathways that ensure no resident falls through the gap between statutory and voluntary support. 

Several frontline models already demonstrate what this looks like in practice: 

Local Area Coordination (LAC) - LAC teams embed coordinators within neighbourhoods to work alongside people before they reach statutory thresholds, connecting them to community assets and VCSE services. Evidence points to reduced isolation, fewer crisis situations, and tangible reductions in GP and A&E visits. 

Healthy Lifestyle and Health Trainer Service - These services act as a natural bridge between public health delivery and the voluntary sector, supporting residents with behaviour change around issues such as weight, smoking, and physical activity, while regularly referring into community-based support. 

Early Help and Family Hubs - These models provide a non-statutory front door for children and families, drawing on council, NHS, and VCSE partners to intervene earlier and reduce escalation into statutory services. 

What all three have in common is that they work best when connections to the wider VCSE ecosystem are strong, consistent, and properly evidenced.

Strategic partnership between Local Authorities and the VCSE sector works best when three things are in place. 

The first is visibility. Councils and frontline workers need to know what community assets exist and how to access them. A live, up to date directory of local services, one that captures the breadth of VCSE provision alongside statutory pathways, makes a fundamental difference to whether a housing officer or debt adviser can make a meaningful referral in the moment. 

The second is coordination. When a resident presents with multiple, interconnected needs, the most effective response is a joined up one. That requires shared records, clear referral workflows, and the ability to track what support someone is receiving so that different services are not working in isolation or, worse, duplicating effort. 

The third is evidence. VCSE partners and Local Authorities alike need to be able to demonstrate impact: to commissioners, to leadership, and to communities themselves. Capturing referral outcomes, tracking journey data, and understanding which interventions are making a difference is what enables councils to make the case for continued investment in community-based support. 

The direction of travel in health and care policy is clear. Integrated Care Systems, neighbourhood health models, and the NHS 10-Year Plan are all pointing towards a future where care is delivered closer to communities, with statutory and voluntary services working alongside one another rather than in parallel. Local Authorities are uniquely positioned to lead this shift, not as commissioners sitting at arm's length, but as genuine anchors of community wellbeing. 

The VCSE sector is ready to be a more active partner. The question is whether the right infrastructure is in place to make that partnership work at scale. 

Access Elemental supports Local Authorities to build connected community wellbeing services, bringing together a live directory of VCSE provision, integrated referral pathways, and outcomes data in one platform. To find out how Access Elemental can help your council strengthen its community and wellbeing offer, speak to our team or watch our recent webinar.