Decision details

(Minute 109)

Councillor Fullam declared a disclosable pecuniary interest as an employee of Sanctuary Housing Association.

The report of the Assistant Director Housing and Contracts and the Assistant Director Business Transformation was submitted identifying the anticipated impact of the proposed welfare reforms. The report also sought approval to the activities identified in the risk assessment to mitigate the impact of the changes.  The Assistant Director reported that the issue had been the subject of robust discussion by the Social Health and Inclusion Partnership (SHIP) and the Scrutiny Committee – Community on 6 November 2012.  Executive noted the comments of members and the resolutions of that Committee including their request for a further report.

Members noted the far-reaching welfare reforms and the serious impact on the individuals and families who would be adversely affected by the changes. They also noted the potential implications for the Council’s general fund and housing income and on the demand for particular services including debt collection, debt advice, council tax, benefits, housing options and homelessness and tenants’ services. Members commented that the proposals appeared to be disjointed and ill thought out and hoped that new Ministerial Guidance would address some of the issues. They endorsed the need for a joined-up approach amongst stakeholders in the city. They expressed grave concern for the impact on young people and the likely increase in homelessness, hardship and child poverty. Others expressed particular concern about the disproportionate effect on low paid workers, the impact of the Housing Benefit cap and the anticipated rise in debt and homelessness. They endorsed the need to carefully monitor the adequacy of the home downsizing budget and to review the practical assistance that the Council would offer in cases of under–occupation. They particularly welcomed the comprehensive risk assessment provided with the report.

Other members acknowledged that some aspects of welfare reform were essential and hoped that certain elements of the changes may remove disincentives to work through minimising the bureaucracy of the system, thereby enabling the redirection of resources towards the most vulnerable in society.  It was hoped that the increase in basic income tax allowance levels would be a further mitigating factor.

Executive recorded their appreciation to Laura Fricker, Benefits Manager and her team for the enormous work they had put into the introduction of the new Welfare and Council Tax schemes as set out in this and the following two reports.

Executive resolved:-

(1)     to recognise that it is Central Government through its programme of cuts and changes to the welfare benefits system, that is forcing this Council to urgently implement measures to help mitigate the effects that the reforms would have on both the local economy and the residents of Exeter;

(2)     to note the report and the implications of the Government’s welfare reform programme on the Council’s services and benefits claimants and to approve the  proposed interventions; and

(3)     to continue to monitor the Welfare Reform Risk Map and the effectiveness of the Council’s response as further evidence emerges, and agree to take appropriate action where possible to protect the local community from further financial hardship, reporting back to Scrutiny Committee – Community when necessary.