Agenda item

To consider the report of the Strategic Director for Corporate Resources.

Agreed:

RECOMMENDED that Council:

(1)   adopt the draft Crisis and Resilience Fund: Housing Payments policy; and

(2)   grant delegated authority to the Strategic Director for Corporate Resources, in consultation with the Leader and the Portfolio Holder for Housing, Homelessness Prevention & Customer Services, to agree the scheme for disbursing Crisis and Resilience Fund: Crisis Payments.

Reason for Decision: As set out in the report.

The Executive received the report which sought agreement on the proposed policy for Housing Payments under the Crisis and Resilience Fund (CRF) as part of the local government finance settlement. Particular reference was made to:

·        the CRF had two objectives: providing financial support to those in crisis and helping residents build long-term financial resilience;

·        the report focused on the first objective, which would deliver support through housing payments or crisis payments;

·        it was intended to be put into effect from April 2026;

·        the new housing payments policy was a rebranded version of the existing discretionary housing payment scheme, which maintained the current eligibility criteria;

·        funding for housing payments would come directly to the Council and the crisis payment funding would be received from Devon County Council, pending confirmation of allocation;

·        a recommendation sought to grant delegated powers to the Strategic Director for Corporate Resources, in consultation with the Leader, to approve the final Crisis Payment scheme once the funding allocation and agreement from Devon County Council had been confirmed;

·        the new scheme was replacing the previous Household Support Fund arrangements, but with a greater focus on emergency crisis payments; and

·        a recent Government announcement advised that additional £50 million funding was being made available to support families using oil for home heating, which would be incorporated into the crisis payment policy.

During the discussion, Executive Members raised the following points and

Questions:

·        the team was thanked for their work on bringing the report forward;

·        enquired on the number of local homes using oil heating and the potential impact on Crisis and Resilience Fund allocations, noting the particular issue in rural areas;

·        clarification was sought on the red indicators in the crisis payment application criteria, questioning whether there were different tiers of considerations;

·        confirmation was sought on the additional government funding for households using oil would be included under the current recommendations and not require a separate approval; and

·        did the Council now know the exact funding allocation from Devon County Council, noting uncertainty had complicated the policy development.

The Leader observed the impact of rising heating oil costs, noting prices had increased several times in a short period, potentially pushing households into crisis.

He noted that many affected residents may not normally meet eligibility criteria for support, but sudden cost spikes created financial emergencies.

In response to questions raised by Executive Members, the Head of Service – Finance and the Benefits and Welfare Lead advised that:

·        the £50 million government funding for households using oil would largely address rural areas, with limited impact in Exeter;

·        census data from 2021 showed that 135 households in Exeter relied on heating oil, compared with 6,000 in East Devon and 4,500 in Teignbridge. This information would determine how Devon County allocated the £1.3 million for the region;

·        the red indicators in the crisis payment policy reflected that the draft policy was still being finalised, which the delegated powers being sought would complete it;

·        the recent government announcement on oil payments would be factored into the final Crisis Payment scheme and therefore covered under the current recommendations and would be incorporated into the final scheme through delegated powers, with no further committee approval required; and

·        final applications for the crisis payment scheme totalled around £586,000, similar to previous Household Support Fund allocations, with an additional £50,000 suggested for the oil top-up element, pending confirmation.

The Leader noted that the report would go to the April Council meeting for approval and could include updated funding allocation information at that time.

Opposition group leaders raised the following points and questions:

·        enquired whether the eligibility criteria for the scheme required receipt of benefits;

·        enquired about any learnings or trends from the seven previous Household Support Schemes and how the Council and partner organisations could improve preventative measures to reduce emergencies and crises, within current system limitations;

·        enquired about the financing changes to a consolidated grant instead of the previous refund mechanism for the DHP and whether any unspent funds could be carried forward to the following year; and

·        enquired if oversubscribed funds could be drawn into the next year’s allocation in advance?

In response to questions raised by opposition Members, the Benefits and Welfare Lead advised that:

·        the Crisis Payment scheme targeted low-income households, but eligibility was not restricted to benefit recipients;

·        low income was assessed based on individual circumstances, using benefits as a benchmark;

·        the Household Support Fund previously focused on short-term cost-of-living payments with little wraparound support. The new scheme highlighted resilience, combining financial help with support services, advice, and signposting to reduce future crises;

·        payments were now delivered through grant funding rather than a reimbursement system, providing a use or lose budget for the year;

·        flexibility existed to move funds between different strands locally and across Devon, allowing reallocation if some areas were overspending while others were underspending; and

·        the new scheme was responsive and adaptive, to uncertain demand and adjustments would be made throughout the year and in future iterations based on experience.

The Leader requested a Councillor briefing on the fund to provide an overview of its operation, eligibility, trends, and learning points and to provide guidance to Members on how Councillors could assist residents, including signposting and support.

The Leader moved the recommendations, which were seconded by Councillor

Wright, voted upon, and CARRIED unanimously

RECOMMENDED that Council:

(1)   adopt the draft Crisis and Resilience Fund: Housing Payments policy; and

(2)   grant delegated authority to the Strategic Director for Corporate Resources, in consultation with the Leader and the Portfolio Holder for Housing, Homelessness Prevention & Customer Services, to agree the scheme for disbursing Crisis and Resilience Fund: Crisis Payments.