Agenda item

To consider the report of the Director.

The Benefits and Welfare Lead spoke to the presentation on the full service roll out of Universal Credit (UC) September 2018 highlighting the impact on customers, City Council services and external organisations and the preparations being done to support UC customers. He also covered those areas of the City Council which would be directly affected including housing benefit administration, payments and collections, customer service and housing advice and homelessness prevention. The circulated report informed Members that the Full Service rollout of UC in Exeter would commence from September 2018 and that, from that point on, all claims to legacy benefits would instead be claims to UC.

The Government’s intention was to simplify and streamline the benefits system, improve work incentives, tackle poverty among low income families, and reduce the scope for fraud and error. Around 7 million individuals and families were expected to receive UC when it was fully introduced. Universal Credit Live Service had been in Exeter since November 2015 for single jobseekers with no dependent children. The rollout of the Full Service would vastly increase the rate at which households moved onto UC and would expand the groups who would be affected.

The Director (BA) emphasised that it was not possible to precisely predict the extent of the impact on demand, where this extra demand would be felt or how the staff skill base needed to change. No permanent change in resources was being recommended until further data on the impact was available. If appropriate, a further report would be brought to Members identifying the resourcing issues.

The following responses were given to Members’ queries:-

·         the Council was a member of the Devon wide Universal Credit Ambassadors’ Group which had met twice. Valuable technical advice was available through the group and it was a useful forum for meeting other landlords;

·         discretionary payments for both housing benefit and universal credit were a key tool to help prevent homelessness but there was concern that the Department for Work and Pensions (DWP) budget would be insufficient to support the Council’s work;

·         with an estimate of only 13% of private landlords willing to accept universal credit clients, the Council would be increasing its outreach to this group through mailshots etc. with a Benefit Support Team set up to further develop this work;

·         with the DWP referring clients with money problems to the Civic Centre, the Council would be signing up as a delivery partner and support was already available through the Personal Budget Support Scheme. The Council would also benefit through increased rent collections; and

·         alternative payment arrangements were available for certain households with problems such as domestic violence and it was up to the customer to ask for these arrangements to be put in place.

Members recognised the significant work undertaken in preparation for the roll out, noting that the extra measures were not a legal requirement and with the Portfolio Holder for People confirmed that planning had been ongoing for some time. She also referred to the recruitment of a Citizens Advice Bureau Money Management Advisor who was also training City Council staff in this work.

The Chair referred to the Section 151 Officer’s advice that, although there was no immediate financial implications, there were financial risks arising out of the implementation of UC which were not known at this stage. Referring to delays in payments, increased debt and social housing providers seeking increases in advance rents, the Chair also highlighted the significant human cost the changes could bring, such as the threat of eviction and increased homelessness and a growth in demand for food parcels and asked for these issues to be brought to the attention of the Executive. This was supported by Members.

Scrutiny Committee - People noted the report and background information and requested Executive to:-

(1)        recognise that the support that can be given to customers impacted by Universal Credit via the Discretionary Housing Payment (DHP), and Local Welfare. Support (LWS) budgets, as currently administered, is limited, and may need to be reviewed;

(2)        note that although without reliable predictions of the amount of extra demand that will be placed on affected services as a result of Universal Credit rollout, no further resources are requested at this present time but that there may be a need to request additional resources in the future. If evidence shows such a need, this data will be presented to Members for their decision;

(3)        agree that the Council will deliver digital and budgeting support to Universal Credit claimants as a delivery partner for the Department for Work and  Pension’s Universal Support scheme for 12 months from April 2018; and

(4)        note this Committee’s concern regarding the anticipated human cost of these changes, including the impact on the residents of Exeter and the potential increase in homelessness. Members were also concerned about the impact on Council Services including income collection.