Agenda item

-       5.05 pm

The Head of Customer Centric Services and the Benefits Manager gave a presentation to the Committee on the main changes to the benefits system and the impacts on claimant households, arvato services and the Council.

Implementation of Universal Credit (UC) had commenced for new claims from single young people in March 2015 and was due to be rolled out for all new claims and changes in circumstances in November 2017, with migration of all other claims due between 2018 and 2021. Arvato staff were working with the Department for Work and Pensions (DWP) and the Council’s housing staff to manage the increased workloads and to mitigate the impacts on households as far as possible.

It was noted that the introduction of UC was having a significant impact on the level of rent arrears, as there was usually a six week wait for the first payment of UC, the housing element of this was paid to the claimant rather than the landlord and some claimants were having their payments sanctioned. Currently average rent arrears for Council tenants was much higher for those tenants on UC (£828 average arrears) than for those on Housing Benefit (£228), with 79% of UC claimants having arrears compared to 38% of Housing Benefit claimants.

It was confirmed that the Council could request managed payments of the housing element of UC be made to it by DWP as landlord where there was the potential for tenants to fall in to arrears.

The reduction in the benefit cap in autumn 2016 was currently affecting 81 households in the borough, with an average reduction in Housing Benefit paid of £49 per week. Benefits advisers were working with families to assist them to claim the benefits to which they were entitled and to minimise the impact of the cap. It was hoped that funding of the two benefits advisers would be extended.

The budget for Discretionary Housing Payments (DHP) to assist those who were most vulnerable had been increased in 2016/17, and it was confirmed that it was expected that this would be fully utilised. The budget for 2017/18 had not yet been decided.

Further welfare reform changes in the future included:

·        From April 2017 removal of housing support for UC claimants aged 21 and under;

·        From April 2019 capping Housing Benefit for tenants in social housing to Local Housing Authority rates.

The implications of these changes for rent collection and housing allocation policies would need to be worked out.

A new project was currently being developed using voicemail and text messages to make it easier for tenants to keep up payments and to access advice and to enable better management and control of payments. It was confirmed that written reminders would still be issued where necessary.

It was noted that the Department for Work and Pensions Select Committee had met recently to take evidence on progress in introducing UC nationally and its impact.

Members indicated that they may have further questions on this issue, and it was suggested that such questions be sent to the Chair for him to raise with the officers and that a progress report be provided to the Committee in July, subject to the outcome from the annual scrutiny work programming process.

The Chair thanked the Head of Customer Centric Services and the Benefits Manager for their input to the meeting.

RESOLVED

(1)            That the report be noted.

(2)            That members submit any further questions to the Chair to be forwarded to the officers for a response.

(3)            That, subject to the outcome of the annual scrutiny work programming process, a progress report be submitted to the Committee in July 2017.