Agenda item

That the Committee notes the report and the positive measures being implemented by the Housing Service to mitigate the full extent of impacts from the welfare reforms from falling upon council tenants and to protect, as far as practical, the Housing Revenue Account income stream.

The Team Manager, Advice & Homeless Service introduced an update report on the latest position regarding Welfare Reform.  The report detailed work carried out by the Welfare Reform Response Team including targeting help to the 42 households in Flintshire which had been affected by the benefit cap.  An update on the Maximum Rent Social Sector (MRSS), commonly known as the Bedroom Tax, reported a recent change in legislation and it was also noted that two major reports were being produced on the impact of MRSS across Wales and the whole of the UK.  On the Discretionary Assistance Fund, a Council officer had worked with a Welsh Government (WG) Task Group to assess the impact of changes and to identify ways of extending the scheme to benefit more vulnerable people.  Although the Fund was currently available until the end of March 2015, WG was seeking clarification on the longer term.

The Committee was also advised that the Department of Work & Pensions (DWP) had implemented a new system to improve the timescale for processing applications for Personal Independent Payments, prior to the migration of working-age Disability Living Allowance claimants in Autumn 2015.  As part of the initial stage of implementing Universal Credit across the UK, ten areas had been selected to accept claims from restricted groups, with Shotton Jobcentre beginning to accept claims from single unemployed claimants from 7 April 2014, with three claims being made during the first week.  Plans to rollout Universal Credit to other areas over time would involve the widening of criteria to include other claimant groups.  On Discretionary Housing Payments, proactive work was also being carried out to help households to manage their circumstances by alternative means, as this limited fund was unlikely to be extended over the longer term.  An update was also received on the comprehensive training programme which would continue to be rolled out and highlighted the successful outcomes from work by the Welfare Reform Response Team.

Whilst giving an overview of the appendices to the report, the Neighbourhood Housing Manager (North) explained the approach taken to engage with those affected by welfare reform to provide information and discuss options on managing the impacts.  As a result of the Maximum Rent Social Sector (Bedroom Tax), 890 tenants in Flintshire were currently subject to a reduction in Housing Benefit, although only a limited number had asked to be re-housed.  She was pleased to report that through a supportive approach by the Welfare Reform Response Team and Income Management Section, there had been no evictions as a result of rent arrears.  On the allocation statistics, it was noted that 9% of tenants had been transferred to alternative properties due to the Bedroom Tax, which exceeded the national average of 6%, however it was recognised that further work was needed.

The Chairman remarked on the positive work undertaken by the Rent Arrears Team.

Councillor Hilary Isherwood thanked the Housing team for the report and commented on the positive engagement with Shotton Jobcentre on Universal Credit.  She felt it was important to offer assistance to vulnerable people, particularly those with mental health and substance misuse issues.  In response to queries, the Neighbourhood Housing Manager agreed to provide a separate response on the number of tenants who had taken in a lodger and any known problems arising from this.  She also agreed to advise of the number of tenants who were unable to transfer to another property for 12 months due to anti-social behaviour issues.  It was noted that Members had previously agreed not to allow property transfers in the cases of existing Court Orders, although discretion could be applied.  On the Bond scheme, the Head of Housing agreed to provide information on the number taken out and whether any reports had been received of Bonds not being returned from private landlords.

In response to queries from Councillor Rosetta Dolphin, the Team Manager, Advice & Homeless Service provided explanation on Universal Credit and said that the Benefit Cap impacted on housing benefit for households with four or more dependent children.  In relation to working-age housing benefit claimants who had fallen behind with rent arrears due to the Bedroom Tax, he estimated that around a third were unable to pay anything with a similar number paying a proportion.  Following concerns about the cost to the Council from Government decisions on welfare reform, it was explained that a report by the Wales Audit Office due to be published later in the year would include findings on this.  The Head of Housing agreed that detail on the cost to Flintshire would be incorporated in the next update report to the Committee.

Councillor George Hardcastle thanked the officers and their teams for the positive approach which had been taken, particularly as the rent arrears position at year end 2013/14 had not been significantly affected during this challenging time.  When asked about the households which had chosen not to accept the support offered and whether these had been in rent arrears prior to the changes, the Team Manager, Advice & Homeless Service said that support would continue to be available if the individuals wished to take this up.  The Head of Housing spoke of the possibility of these households being subject to rent arrears and other issues, and agreed to look into this.  In response to a question about the cost of removals, it was noted that the Tenant Incentive Scheme could provide some help however each case was considered on its own merits.

Councillor Amanda Bragg praised the early intervention steps to help those affected by the Benefit Cap and asked if those who had declined help were still able to access at a later date.  The Team Manager, Advice & Homeless Service said that ongoing support was available with further attempts made to engage with households, subject to resources available.  He agreed with comments that the full impact of those affected by welfare reform was not yet known.  In response to a question about those affected by the Bedroom Tax falling into rent arrears, the Head of Housing pointed out the challenges in availability of suitable size accommodation and that in accordance with the agreed policy, Council properties would continue to be allocated based on need.  She went on to suggest that this may be an area requiring future discussion by the Committee.

Concerns were raised by Councillor Peter Curtis about direct payments to tenants and checks carried out in relation to lodgers in households affected by the Bedroom Tax.  The Head of Housing stressed that the Council did not recommend that such households place an advertisement for a lodger and that in many cases, these were acquaintances of the tenant.

Councillor Dolphin thanked the Team Leader (North) for helping to provide a positive solution to a property within her ward which had proved difficult to let, and suggested that this should be repeated for other similar properties.

RESOLVED:

That the Committee notes the report and the positive measures being implemented by the Housing Service to mitigate the full extent of impacts from the welfare reforms from falling upon council tenants and to protect, as far as practical, the Housing Revenue Account income stream.