Agenda item

This presentation will cover the overall impact of the Benefit Cap since its implementation in August 2013, including an overview of significant equalities impacts, and the mitigation of its effect on claimants via employment and housing solutions.

The Chair stated that as well as a presentation on the Overall Benefit Cap, Brent Citizens Advice Bureau had also been invited to the meeting to provide details of the typical issues they faced and how they dealt with them and the kind of customers that were visiting them.

David Oates (Head of Customer Service and Benefits, Regeneration and Growth) then gave a presentation on the impact of the Overall Benefit Cap (OBC) in Brent.  He advised members that the OBC had been introduced in the borough in August and September 2013 and that it limited the total amount of welfare benefits for most working age claimants, with only some limited exemptions in respect of the Disability Living Allowance (DLA), Personal Independence Payment (PIP) and Working Tax Credit.  Members noted that there had been 2,322 new OBC cases as of 31 August 2014, with just under 50% receiving a benefit cap of up to £50 per week.  Some 488 customers had advised that they were addressing the shortfall themselves, and a further 1,068 had fully resolved their situation, of which 48% were achieving this through employment, which was a positive outcome.  David Oates advised that temporary accommodation and rents were comparatively high in the borough and this significantly impacted on customers and some had re-housed or even moved out of the borough altogether to address the shortfall.  In respect of family status, members noted that the largest group of new OBC cases where caps were applied were single parents and these made up over 53% of new cases alone.  Single claimants were less likely to be capped as they were likely to be living in smaller properties and so entitled to less benefits.  Almost 50% of households meeting the shortfall themselves were lone parents, and of the cases resolved through employment, 57% were lone parents and 38% couples with dependents.  In terms of ethnicity, black ethnic groups were most affected with 38% constituting new OBC cases and 48% of those capped by £250 or more per week being from this group.  The committee heard that 42% of the black minority ethnic group resolved the shortfall through employment and 41% through relocation.

Jacqueline Carr (Chief Executive, Brent Citizens Advice Bureau) then addressed the committee.  She advised that the partnership between Brent Citizens Advice Bureau (CAB) and the council was working well.  Plans had been devised by the two organisations, and Brent CAB was able to make contact with customers who had been impacted upon as a result of the DWP monthly report.  However, an area that Brent CAB was struggling with was the additional demand placed on it as a result of the OBC as Brent CAB did not have sufficient resources to deal with the number of customers that were now approaching them for advice.  Jacqueline Carr advised that most enquiries concerned welfare reforms in general and their impact on subject areas such as housing.  Members heard that there had been a 70% increase in welfare benefit enquiries.

During members’ discussion, it was asked whether Brent CAB felt that the council was listening to their concerns because of the introduction of the OBC.  In respect of the 21% of OBC cases being resolved through moving to alternative accommodation, clarification was sought as to the number of cases that were resolved within the borough and outside the borough and the number receiving council assistance to make these moves and what was meant by being resolved under ‘other’.  A further explanation in respect of DLA customers being exempt from a cap was also requested and it was asked whether the greatest risk to residents posed by the OBC was in respect of housing and what impact did rising rents have in respect of the cap.  It was commented that in future a report rather than a presentation on this item would be preferable.  Another member asked if any lessons had been learnt since the OBC had been introduced and had there been any surprising developments.  She also asked if there were any strategic issues that needed consideration in the future.  In respect of resource issues, comments were sought about how significant these were and what were the expectations in the medium term.  A question was raised as to where customers who moved out of the borough were moving to.  A member asked if the council was able to assist Brent CAB in dealing with the increased demand that they were struggling to cope with and was there any help for single under 35 year olds on Benefits.

In reply to the issues raised, David Oates advised that although customers would be encouraged to seek employment to resolve shortfalls in respect of OBC, if this was not possible then they may consider moving to alternative accommodation and he would provide Councillor Daly with the number of customers both re-housed in the borough and outside of the borough and details of whether they were assisted by the council.  David Oates explained that resolved OBC cases under ‘other’ could be due to a range of technical issues and he would provide more details of such scenarios.  Members heard that some DLA customers may be exempt from being capped and the council would advise them if this was the case.  In terms of future challenges, David Oates advised that ongoing demand would continue to stretch resources and although temporary funding arrangements were in place, new OBC cases would continue to come in as the OBC was now an established part of the Benefits scheme.  There was a need to closely monitor demand and although some lessons had been learnt, there would be a tight squeeze on resources and this would be an issue. 

David Oates advised that there had been some surprise that the impact of the OBC had been less than expected in terms of numbers affected.  The difficulties that were being experienced were less of a surprise and this had been helped by better working between teams and agencies.  David Oates added that the introduction of Universal Credit would bring about significant changes that would be outside of the council’s control as this would be undertaken by DWP.  The council would need to build a complimentary offer and consider a different delivery model too.  Members heard that the council would try and give a clear a picture as possible to single under 35 year olds concerning their benefits entitlements.  David Oates confirmed that customers were most affected by the OBC in terms of housing as the cap was applied to their Housing Benefit.  The rising rents in the borough also meant that properties were becoming increasingly inaccessible to those on Benefits.

Jacqueline Carr stated that local authorities were at the forefront of implementing the OBC and it was important that they supported those affected by the changes.  Brent CAB was funded to provide advice to customers and a member of staff had been placed in the council’s Benefits and Customer Services Team until at least 31 December 2014.  Jacqueline Carr advised that Brent CAB had handled around 450 outcomes over the last year and the continual demand was difficult to cope with.  She suggested that there would be an increasing number of customers visiting Benefits and Customer Services, councillor surgeries and Brent CAB because of the changes in Benefits.  The committee heard that Brent CAB often experienced long queues long before their offices opened.  Jacqueline Carr then explained the process by which Brent CAB would advise customers, which would consist of an initial assessment before determining whether the case would be dealt with directly by Brent CAB, or to signpost the customer to the appropriate agency.  A lot of the queries Brent CAB received were in relation to debt and housing and welfare reforms had affected many of their customers.  The committee also heard that rising rents in the borough were placing pressures on customers.

Councillor Mashari advised that the council was doing all it could to keep customers in the borough.  There were 19 capped cases that were due to move out of the borough and each had been provided with the appropriate contacts in respect of seeking employment.  Councillor Mashari added there needed to be greater engagement with a range of agencies to help customers.  She also advised that there was a Member Development Programme session on Revenues and Benefits taking place on 13 November 2014.

The Chair explained that this item had been requested shortly before the meeting and this is why a presentation had been given.  He emphasised the importance of continuing to engage with residents about welfare reforms and he requested that the committee receive regular updates on this issue.