Agenda item

5.05 pm – Progress Report on Implementation of Universal Credit attached.

The Cabinet Member for Business Transformation, the Client Manager, the Head of Revenues and the Operational Benefits Manager presented a progress report on the implementation of Universal Credit (UC) in Chesterfield since the previous report to the Committee in March, 2019. 

The report referred to the continuing work by the benefits team with partners and stakeholders to ensure the best possible outcomes for claimants and the Council, including the following issues:

·        The assisted claiming and budgeting support in most cases having been provided by the Citizens Advice Bureau (CAB) since April, 2019, although data on its use was not currently available. It was unclear whether CAB nationally would continue to provide this support in 2020/21.

·        The managed migration of existing claimants from legacy benefits to UC which had been scheduled to start in January, 2020, had been delayed, and a further report on this to parliament was not expected until Autumn, 2020.

·        The Discretionary Housing Payments (DHP) had been managed within the reduced budget for 2019/20, although this had necessitated payments to claimants being lower in order to maintain the numbers of claimants supported. The DHP budget for 2020/21 had not yet been announced.

·        A higher proportion of UC claimants had been subject to sanctions (reducing or stopping payment of benefit) than claimants of other benefits, mostly for failure to attend work focused interviews.

·        Availability of IT in various locations for claimants to access their records was currently adequate, although this may need to be reviewed when managed migration was implemented in the future. 

The report included the latest statistical and financial information in respect of UC claims, including:

·        Average rent arrears of Council tenants affected by UC was £459 in January, 2020 (having taken account of managed payments received by the Council direct from DWP), which was significantly higher than the average arrears of other Council tenants on Housing Benefit;

·        Approximately 75% of tenants claiming UC were in rent arrears, and the number of such tenants had risen from 840 in February, 2019 to 1,330 in January, 2020;

·        The total level of rent arrears was expected to rise as the number of tenants claiming UC increased in the future;

·        The impact of UC payments being based on 52 weeks despite 2019-20 being a 53 week rent year was being monitored, although it was expected this would increase the level of rent arrears.

It was noted that the Benefits Team continued to support individual claimants and liaise with DWP including in respect of issues of underpayment of the Severe Disability Premium, the Carer element not being included in UC awards, sole occupiers with others named on a tenancy who were no longer resident, tenants whose housing costs were still being calculated on a 48 week rent year.

The report referred to the Citizens Advice (CAB) / Local Government Association Council tax protocol, although officers’ advice was that this would not currently add significant value to the Council’s operation of UC.

Members expressed concerns regarding:

·        The lack of current data from CAB on the use of the assisted claiming and budgeting support;

·        The 5 weeks waiting period leading to increased use of foodbanks and increased levels of child poverty;

·        The application of sanctions, some of which had been successfully appealed;

·        Vulnerable people having been defrauded by others persuading them to claim advances, there having been a few cases locally;

·        Whether there would need to be additional IT capacity and support when managed migration was implemented;

·        The difficulty for the Council to manage budgets given the impact of UC on rent and Council Tax arrears.

Members expressed their appreciation of the work being undertaken in supporting claimants, and the Chair thanked the Cabinet Member for Business Transformation, the Client Manager, the Head of Revenues and the Operational Benefits Manager for their contribution to the meeting.

RESOLVED -

(1)     That the ongoing work on the implementation of Universal Credit be supported.

(2)     That progress of the implementation of Universal Credit be reported to the Committee in the summer / autumn of 2020, subject to the issue being included on the Committee’s work programme as part of the annual scrutiny work programming for 2020/21.