Agenda item

(Director of Resources) to consider the attached report.

The Assistant Director Benefits, Janet Twinn, introduced the informative report on the Governments Universal Credit Scheme. This was to inform all members on the rollout of Universal Credit and the impact it would have on the work of the Council.

Universal Credit would replace the following benefits that people now received: Jobseekers Allowance, Employment and Support Allowance, Income Support, Working Tax Credit, Child Tax Credit and Housing Benefit.  A single payment would be made on a monthly basis to cover both living expenses and housing costs.

Universal Credit was not paid for the first week of the claim. The payment was made monthly in arrears and was designed to replicate the budgeting required by people who receive a monthly wage.  The claimant was then responsible for paying their full rent to their landlord. This was a change for council tenants as Housing Benefit was paid directly to the rent account and not to the tenant.

Up until 20 September 2017, in Epping Forest District, Universal Credit had been restricted to new claims from single people who were job seekers. However, this was changing as ‘full service’ was rolled-out throughout the country from July 2017. In the future, couples, families with children and people with disabilities who were of working age, would also be directed to claim Universal Credit. This meant that they could no longer claim Housing Benefit and they can only get help with their rent through Universal Credit, although there were some exceptions.

The exceptions to the move to Universal Credit were as follows:

·         People who have more than 2 children

·         People who live in exempt and specified accommodation, i.e. accommodation where support is provided by the landlord to tenants who are vulnerable in some way, e.g. physical disabilities, mental health issues or drug/alcohol addictions.

People falling into these categories would still claim Housing Benefit.

It was important to note that currently the move to Universal Credit did not apply to people of state pension age and it affected only new claims. Everybody currently receiving Housing Benefit would keep receiving Housing Benefit for the next few years, unless they had a break in their claim. The Government currently anticipated that the existing working age Housing Benefit claimants would move to Universal Credit by 2022, but this date had already been put back many times.

The Council still remained responsible for Local Council Tax Support, and therefore people would have to claim Universal Credit from the DWP for help to pay their rent, and at the same time make an application to the Council for help to pay their council tax.

There were delays in getting claims out and there was a wait of 6 weeks or longer for payment which put the claimants in rent and Council Tax arrears. People on long term benefits usually had difficulties in budgeting on a monthly basis; the council provided support and help for them.

Officers had communication problems with DWP staff and the Universal Credit Centres, they found it hard to find someone to speak to and resolve problems.

It was know that Landlords on the whole were not taking on persons on Universal Credit and this in turn was resulting in more homelessness and more people in Bed and Breakfast accommodation. It was hoped that the B&B costs would be moved out of Universal Credit, but there was no sign of this happening as yet.

Because of the monthly payments going directly to the claimants, and their resulting difficulties in budgeting, there was an increase in rent and council tax arrears and it may be that the council would need to consider different ways to collect council tax.

Councillor Bedford asked if we informed people how to get aid while they waited for their money. Ms Twinn said that they had not put anything in position as yet but were looking at what they could do. Councillor Bedford asked if there were such things as emergency grants or could we refer them to foodbanks. He was told that the council had food vouchers that they could give out. The DWP used to give emergency funds and would give advances on Universal Credit if asked, but people were not being told this. Councillor Bedford then asked if people were being triaged to sift out the vulnerable. He was told that that was for the DWP to do.

Councillor Sunger asked if there was any provision to pay directly to the landlords. He was told that once they were eight weeks in arrears then the landlords could ask for ‘Alternative Payment Arrangements’. Officers tried to be proactive and inform the landlords that this facility existed.

Councillor Jon Whitehouse noted that there were various payments and asked when officers offered advanced payments or for Discretionary Housing Payments (DHP)? Ms Twinn said that they could not pay DHPs on the first week of the claim as they were not eligible for Housing Benefits for the first week. Councillor Whitehouse asked if they could use the DHP to pay arrears. He was told that they could but not for the first week.

Councillor Bedford asked if the council carried out Local Authorities check for private housing. Ms Twinn said that she would ask the HousingOptions people.

Councillor Bassett noted that we provided assistance to the local CAB. Did we maintain any liaison with them? Ms Twinn replied that we did have liaison meetings with them. Councillor Mohindra wondered if we needed to ask the CAB if they needed more help from us.

Councillor Whitehouse wondered if we had briefed or lobbied our local MPs on the problems we were facing with Universal Credit. Officers were not sure that any authority in Essex had done this but there would be a debate in Parliament on 18 October about postponing the roll out of Universal Credit.

Councillor Patel asked about our relationship with the Job Centres. He was told that officers did have meetings and contact with them, but noted that they were under DWP control and so towed their ‘official’ line.

Councillor Patel asked if we could publicise our Personal Budgeting Support to people in receipt of Universal Credit.

The Committee thanked Ms Twinn for her informative report and for bringing the problems around Universal Credit to their attention.

RESOLVED:

That the report on Universal Credit be noted.