Agenda item

Non Cabinet Members' Debate

Meeting of Council, Monday 20 September 2021 6.00 pm (Item 15.)

To enable Non Cabinet Members to raise an issue of relevance to Brent for debate on which notice has been provided in accordance with Standing Order 34 and to receive reports from Cabinet members, as required, on any issues previously raised.

Members are asked to note that the subject identified for debate at this meeting is as follows:

Cuts to Universal Credit

The motion put forward as the basis for this debate has been attached.

Decision:

The following motion was unanimously AGREED as the outcome of the non-cabinet member debate:

Cuts to Universal Credit

This council understands how hard this borough has been hit by the COVID-19 pandemic in terms of the tragedy that is the loss of more than 720 lives, the uncertainty of a local economy put on hold, and the hardship of tens of thousands of Brent’s residents either furloughed or out of work and reliant on an inadequate Universal Credit.

Therefore, the announcement of this government plans to cut Universal Credit and Working Tax Credit later this year comes with serious implications, especially in light of the furlough scheme coming to an end in September.

This council is concerned at the soaringfigures of food bank usage in the borough coupled with the increase in gas prices as we wind down into the colder months forming a perfect storm. One which emerging research has shown will force thousands of families into severe poverty.

This council notes its efforts to shield its residents from the full impact of the economic downturn in recent years, particularly in anticipation of the furlough scheme ending.

Thus far this council has:

· Set up significant monetary support through the Brent Resident Support Fund which has been access by thousands of residents.

· Contributed a further £500k to Brent works to extend this scheme as furlough ends.

· Organised two Job Fairs to help connect residents with potential employers.

· Worked with businesses to place young people into ‘kick start’, a new youth work placement scheme, helping to provide a much needed boost to youth employment in the borough.

· Employed an ethical approach to financial inclusion which is reflected in Brent’s Ethical Debt and Debt Write Off policy.

· Supported private renters to sustain tenancies and avoid eviction.

However this council recognises the limits of its abilities to mitigate the economic downturn for its most vulnerable residents and calls upon the government to step up to its duty to protect those most at risk.

This council points out, that families most at risk of deepening poverty will not benefit from the increases because they are subject to the benefits cap. Migrants without recourse to public funds, many of whom work in industries hardest hit by the lockdown, have also been left out in the cold and millions of families reliant on the legacy benefit system did not receive the uplift channelled through Universal Credit and Working Tax Credit.

This council therefore calls upon the Government to:

· Continue the £20-a-week increase to Universal Credit and Working Tax Credit early contributions which was brought in to help households deal with the impact of COVID-19.

· Extend this to other benefit schemes to help residents who are most in financial need and have been disproportionately impacted by the pandemic.

Support Councils through better funding to help them up skill and retrain residents at risk of unemployment as furlough ends.

Minutes:

In accordance with Standing Order 34, the Mayor advised that the next item on the agenda was the non-cabinet member debate, with the subject chosen for consideration being the government’s plans to cut Universal Credit and Working Tax Credit.

Members were advised that the motion submitted as the basis for debate had been circulated with the agenda and that the time available for the debate was 25 minutes.

The Mayor then invited Councillor Chappell to introduce the motion. As context for the debate, Councillor Chappell highlighted the government’s plans to reverse the Universal Credit uplift meaning a cut of £20 per week for claimants, which it was felt would have a detrimental impact on those affected and in worsening increasing levels of poverty. He questioned central government’s insistence that the change would drive down unemployment, noting that many of those affected were already in work. Highlighting what he felt to be the unfair nature of the policy, Councillor Chappell urged all members to support the motion submitted as the basis for the debate and called on central government to reverse the planned cut, extend the uplift to other benefit schemes and support local authorities in their efforts to tackle unemployment and increasing levels of poverty and hardship.

The Mayor then opened up the debate to other members, with the following comments made during the discussion that followed:

Councillor Kansagra began by highlighting the financial support provided by central government during the pandemic along with the need to prepare for these costs having to be recovered at some stage in the future. Whilst highlighting that the uplift in Universal Credit had only been introduced as a temporary measure, he supported the view that ending the temporary uplift at the same time as the furlough scheme would create additional hardship and therefore felt there was a need for the Government to reconsider withdrawing the uplift at the current time.

Councillor Shahzad, in supporting the motion, highlighted the difficult winter ahead for residents with increasing fuel, energy and food prices. He felt that the heaviest burden would fall on the poorest residents, and as such urged central government to rethink its planned cuts to Universal Credit.

Councillor Mahmood also expressed his support for the motion, highlighting the impact that the cuts would have on the finances of those in receipt of Universal Credit. He urged all members to unite in asking central government to reverse its decision and postpone the cuts until the economic situation had improved.

Councillor Georgiou, also in support of the motion, felt that the planned cuts were yet another attack on the most vulnerable members of society at a time in which Government support was truly needed. He questioned the economic and moral sense in placing further unnecessary pressure on struggling families during the recovery phase of the pandemic along with the impact of the Government’s levelling up agenda and called on all members to send a clear message to central government that it did not agree with the planned cuts.

Councillor Afzal, in supporting the motion, expressed concern at the Governments actions over recent months given what he felt was there disproportionate effect on those more vulnerable members of society, including the increase in National Insurance and withdrawal of the uplift in Universal Credit. He felt this highlighted the Government’s complete disconnect with the poorest and most vulnerable communities along with the disregard for their welfare as part of the recovery from the pandemic. He felt this was particularly highlighted when compared with the approach taken to support financial institutions during the last financial crisis and which and felt justified calls for the introduction of a wealth tax.

Councillor Choudry expressed his surprise at central government’s plans to reverse the Universal Credit uplift, especially in light of the financial pressures people were under and concerns expressed by a range of independent organisations including the CBI and CIPFA regarding its impact. In supporting the motion, he also was keen to encourage the Government to reverse its decision.

Councillor Miller, echoing the sentiments of previous speakers, highlighted the fact that the majority of people in receipt of Universal Credit were in work and felt that central government’s plans to reverse the uplift were unfair, inequitable wrongly calculated and represented yet another attack on working people.

Councillor Dixon, reflecting on the pandemic, highlighted the increased reliance of residents on community and voluntary organisations, as well as on Council services. Having witnessed at first hand the impact of current levels of poverty and hardship being experienced by many of the most vulnerable she felt the Government needed to reconsider withdrawing the uplift, which was providing much needed support and expressed her support for the motion.

Councillor Maurice also expressed his concerns at the timing of the decision by the Government, which he felt was mistaken and needed to be reconsidered and reversed. As a result he advised he would also be supporting the motion.

Councillor Johnson highlighted the disproportionate effect the cuts to Universal Credit would have on black and minority ethnic communities, as well as on the unemployed, single parents and those families with children. He felt the Governments’ approach was unnecessary and would force some of the poorest and most vulnerable to have to make even more difficult choices at a time when the cost of living was increasing. On this basis he also expressed support for the motion.

As no other members indicated they wished to speak the Mayor then invited Councillor Southwood, as Lead Member for Housing and Welfare Reform, to sum up and close the debate.

Councillor Southwood began by thanking members for highlighting many of the challenges faced by some of the most disadvantaged residents in the borough over the coming months. In responding to the debate she felt the Governments actions in ending furlough, removing the restrictions on tenant evictions, increasing National Insurance and removing the uplift in Universal Credit at a time when the cost of living was rising so sharply highlighted the actions of a Government out of touch with the poorest and most vulnerable in society. Highlighting the work and progress being made in delivering the recommendations from Brent’s Poverty Commission she was, however, proud to recognise the Council’s efforts in seeking to support local residents during and in the recovery from the pandemic, including establishment of the Resident Support Fund. Whilst this continued to be an important means of support she acknowledged that this alone would not alleviate all hardship and therefore ended by urging the Government to reverse the planned withdrawal of the uplift in order to continue supporting those most vulnerable residents experiencing hardship.

The Mayor thanked all members for their contributions and as an outcome of the debate it was unanimously RESOLVED to approve the motion as set out below:

“This council understands how hard this borough has been hit by the COVID-19 pandemic in terms of the tragedy that is the loss of more than 720 lives, the uncertainty of a local economy put on hold, and the hardship of tens of thousands of Brent’s residents either furloughed or out of work and reliant on an inadequate Universal Credit.