Agenda item

To cover impact on vulnerable people who will now have to manage their finances more carefully.

The Committee considered a report on the Welfare Reform Bill.

It was agreed that this item should be considered alongside the Strategic Housing Service Risk Register.

The main points of the discussion were as follows: -

·        This is now the Welfare Reform Act. Detailed legalisation and guidance will follow.

·        In general the aim is to combine all out of work income related benefits (including Housing Benefit) with tax credits to one source of help (Universal Credit) This hopes to strengthen work incentives, make benefits simpler and reduce error and fraud.

·        The transition from the old system to Universal Credit will take place over four years. The timetable for new claims for out of work claimants commences in October 2013.

·        Changes to the Housing Benefit (HB) scheme were introduced in April 2011,although the majority of existing claimants were afforded transitional protection, which has now ended. It is anticipated that because of the reductions in the levels of HB payments some tenants may find that their rent becomes unaffordable during 2012/13 and will have to draw on other income to avoid rent arrears or move to cheaper accommodation. It is therefore anticipated that the level of rent arrears may increase and the number of those presenting as homeless could rise.

·        The current Council Tax Benefit Scheme is being replaced by localised support administered by councils. Local Authorities will have greater discretion on how they provide support for those on low incomes, however there will be an overall funding reduction of 10%. Data is being gathered regarding caseload, which will help to identify the most vulnerable groups. It is likely that those who will receive the least benefit will be those of working age.

·        Claimants will receive a single direct benefit payment, which will include their housing payments, which would previously have been made direct to the landlord. There have been concerns nationally that this will lead to higher levels of debt.

·        There are two planning boards, the Welfare Reform programme board and the project board working through the changes and their implementation.

·        Concern was expressed as to how those people affected were being kept informed of the changes. All those who have already been affected by HB changes have been identified and received information to help them mange their situation and make appropriate choices. There has also been strong liaison with the strategic housing officers.

·        A question was raised about how this might affect people who wished to downsize but were unable to through no fault of their own .It was confirmed that the Housing Allocations Policy was being reviewed to try to ensure that people in this situation would not be adversely affected. Downsizing would be given additional weight. Only those people under 60 were affected by the new under occupancy rules.

RESOLVED: -

1. That the Committee notes the implementation of the April 2011 changes to Housing Benefit and the interim position with Welfare Reform.

2. That the Committee notes the potential risks and service delivery implications for the council arising from the welfare reforms, which have been described as the most significant changes to the benefits system in over 60 years.

3.That the Committee notes that it will receive further reports in the autumn and as more detailed information becomes available.