Agenda item

(Copy herewith)

The Head of Finance and Resources provided further information on welfare benefit reforms which would take effect from 2013, with particular emphasis on the changes to the Housing and Council Tax Benefit Schemes and provided an overview on how those changes might affect tenants, landlords and residents in Northampton.

In answer to Members’ questions the Head of Finance supplied information as summarised below:

·         Under the forthcoming changes in the benefits systems it was important to ensure that there were no sharp reductions in support for those who would be affected, should the Council decide to apply for the recently announced top-up grant.

·         The Council was attending as many of the consultation events on the various pilot schemes as possible.  Results on some of the schemes had been released in the week before this meeting.  Consultation results had been disappointing and the national press had not given much coverage to the changes, although that was beginning to improve.  It was confirmed that this was the same across the country, where disappointing consultation results has also been the case.

·         The majority of people who had been involved in the pilots of direct payments were reported by the Department of Work and Pensions as being happy with the proposed changes, whereby they would receive payments of all benefit, including housing benefit, direct.  However, for many of them it has been acknowledged that they would need supporting under the changes proposed.  This would be the biggest change to the Welfare State since its inception and, therefore, Northampton are preparing for significant transitional requirements.

·         Existing pensioners are protected from the impact of the changes to Council Tax Benefits through a default scheme, which would be adapted if the Council developed its own scheme.

·         A number of issues which the Council had identified in the short term were set out in the report.  Some of these issues were being considered in the pilot schemes underway in the country.  The biggest challenge for this Council was likely to be collection of monies.

·         An issue for local authorities would be having the appropriate size housing stock for people to move into.  If the right sizes were not available it could lead to people under occupying larger properties and receiving less benefit as a result.  Again, existing pensioners who are under occupying are not impacted.

·         It was difficult to quantify what the impact of the changes would be on the Council.  Officers had information, through housing benefit and Council Tax data, on the numbers of people and have produced impact assessment data.  Residents who would be affected would and are being contacted about 3-6 months before changes come into effect.

It was noted that a report on the adoption of a local Council Tax Reduction Scheme will be made to Cabinet on 19 December 2012, to make a recommendation to full Council on 21 January 2013.  The scheme had to be agreed by 31 January 2013.  A report would be made to the next meeting of the Committee, on 14 January 2013, and the Chair of the Committee could then report the Committee’s views to the full Council meeting later that month.

RESOLVED:

1.    That the forthcoming changes to Housing Benefit and Welfare Reform proposals contained in the report be noted.

2.    That the potential risks and service delivery implications for the Council arising from these changes be noted.