Issue - meetings

To consider the joint report of the Assistant Director Housing and Contracts and the Assistant Director Business Transformation.

Scrutiny Committee – Community considered the report at their meeting on 6 November and comments will be reported.

(Report circulated)

(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  ...  view the full decision text for item 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.

RESOLVED that:-

(1)     Executive recognises 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)     the report and the implications of the Government’s welfare reform programme on the Council’s services and benefits claimants be noted and the proposed interventions be approved; and

(3)     Executive continues to monitor the Welfare Reform Risk Map and the effectiveness of the Council’s response as further evidence emerges, and agrees to  ...  view the full minutes text for item 109

To consider the report of the Assistant Director Housing and Contracts and Assistant Director Business Transformation - report circulated.   

The Assistant Director Housing and Contracts presented the report identifying the anticipated impact of the proposed welfare reforms on both the Council and its benefit claimants. It also set out a risk assessment identifying the key risks for the Council and its residents, as well as setting out suggested interventions to mitigate the risks.

The impacts of the changes could be far-ranging, impacting on claimant’s income in general and, specifically, on their ability to meet the cost of the house they lived in.  There were potential implications for the Council’s general fund and housing income and on the demand for certain services such as debt advice, council tax, benefits, housing issues and tenants’ services. The impact on the Council’s income and staff resources had been identified and mitigated but would need to be closely monitored.  Many of the suggested interventions could be resourced within existing budgets and some transitional funding was available.

A Member referred to the percentage of households without a computer. In response, the Mobile Benefits Training Officer referred to research in local communities to identify the most appropriate locations for IT hubs for the public to go on line to access the benefits system and where support could be made available, including home visits where possible. Options for continuing with paper based applications and face-to-face meetings would remain. In response to another Member, she confirmed that literature and new bills should be ready by April 2013.

Members were concerned about the effect on both individuals and the wider economy and recognised that it was too early to accurately predict the overall impact the changes would have. However, there had been a noticeable increase in enquiries from concerned individuals.

Responding to concerns that the changes would lead to overcrowding, for example, three generations sharing homes, the Assistant Director Housing and Contracts assured Members that procedures were in place to meet the likely increase in housing enquiries and that each enquiry would be dealt with on a case-by-case basis. Work was being undertaken with partners, including CAB, to ensure that the responses to the changes would be as flexible as possible with sufficient resources made available.

It was feared that the change in the local housing allowance would contribute to the private sector being unaffordable for individuals on benefits. There would be an increase in the number of claimants seeking social housing when private sector housing rents in Exeter become unaffordable. Members referred to the impact of the housing benefit income cap but it was difficult to determine at this stage how the affordable rent of up to 80% would impact on the private sector.

A further report on the impact of the changes would be submitted to this Committee in 2013.

Scrutiny Committee - Community:-

(1)        recognised that it is Central Government, through its programme of cuts and changes to the welfare benefits system, that is forcing Exeter City Council to urgently implement measures to help mitigate the effects that the reforms would have on both the local  ...  view the full minutes text for item 57