Patrick Butler points out that grants to people in terrible need appear to be going down despite poverty increasing. He suggests the paradox is down to referring agencies dropping out of business. I suspect that as far as Councils are concerned, there is also a certain amount of gatekeeping going on. Councils are making harder for people to apply in order to keep a limit on their budgets. This all helps create more poverty.
It also is a sign that the public sector and the third sector are not strictly separate, as David Cameron seems to believe, but interdependent.