Agenda item

This report provides an overview and details of the anticipated impact of planned changes to Housing/Council Tax Benefit over the next 3 years and the proposed changes to reform the wider welfare benefit system over the next 7 years.

Margaret Read (Head of Revenues and Benefits) introduced the report before the committee which provided details of the anticipated impact of planned changes to Housing/Council Tax Benefit over the next 3 years and proposed changes to reform the wider welfare benefits system over the next 7 years.  She explained that the intentions of the proposals were to simplify the system, ensure people were better off working than on benefit and reduce the overall spend on welfare benefit.  It was the latter element that would most impact on the council with the most immediate impact being felt by private sector tenants on benefits.  A cap on benefit was to be set and the way rents were estimated would be changed.  The full range of the changes was set out in the report.  Margaret Read added that two of the effective dates included in the report had changed since the report was written.  The introduction of caps on levels of housing benefit for those in the private sector had been changed to fall on the anniversary of the allowance being awarded but with a further nine months transitional protection being granted before Housing Benefit reduced.  For all new applicants to Housing Benefit, the caps would apply from 1 April 2011 but there would also be further reductions to levels of housing benefit by limiting it to 30^th percentile of average rents rather than 50^th percentile of rents in an area. The percentile reduction had been brought forward from 1 October 2011 to 1 April 2011.  Margaret Read stated that the changes would inevitably lead to increase demands being made on the benefits service.

Reference was made to paragraph 3.9 of the report which detailed the proposal to transfer responsibility for investigating housing benefit fraud from the local authority to the Department for Works and Pensions.  It was explained that this could have a detrimental effect on this area of work because the council had been highly effective in investigating and prosecuting benefit fraud.

Given the importance of the changes explained and the impact they would have on a councillor’s casework, it was felt that the Member Development programme should include a session on the changes.  [There is already a session included in the programme for 26 January 2011].

Margaret Read drew the committee’s attention to the fact that the Housing Benefit service had already developed plans in preparation for the increased pressures the service would face.  However, it was still expected that some activities would have to be stopped or modified in order for the service to be able to meet all the additional pressures placed upon it.

In answer to questions, Margaret Read stated that the housing service would have to plan for any anticipated demand from people being made homeless due to the housing benefit changes.  She confirmed that there would be a need for some computer software changes.  All permanent posts in the service were currently filled by permanent staff but this would become an issue as 2013 approached because of the need then to reduce staff.  An impact needs assessment would be carried out nearer the date of implementation of the changes and the Department for Work and Pensions would carry out its own impact assessment.  Finally, it was said that it would be for the housing service to answer how far out of borough it would consider housing people.

RESOLVED:-

(i)         that the likely impact of changes to Housing/Council Tax benefit, due to take effect in 2011/12 through to 2013/14, be noted;

(ii)        that the details disclosed in the White Paper about the introduction of Universal Credits and the early evaluation of the impact this may have for the Council and local community be noted.