Agenda item

Welfare Reform - Financial update

To receive an update on the schemes that were implemented or revised as a consequence of on-going welfare reform.

 

Minutes:

The Sub-committee considered the quarterly report that provided an update on the three schemes that were implemented or revised as a consequence of on-gong welfare reform.

 

It also provided an update on the Full Services Universal Credit.

 

Discretionary Housing Payment Fund – (DHP)

 

The Discretionary Housing Payment Fund provided by the Department of Work and Pensions supported people in financial need who have a shortfall in their rent and housing benefit (or Universal Credit including the housing element).

 

There was continued work with the Citizens Advice and refer claimants who may benefit from budgeting and debt advice.

 

The Sub-committee was reminded that the DHP policy was reviewed on an annual basis that ensure s payments were directed to those in most need.

 

The report provided the current financial position and a breakdown of the fund, which detailed an unallocated funding at an amount £41,171 at the time of publishing the report.

 

Of the all the assessed claims 597 (80%) were successful and of those paid a Discretionary Housing Payment 61% were council tenants and 39% were privately rented tenants

 

Local Council Tax Support Scheme

 

The number of claimants to the scheme had continued to reduce and at the end of September 2019 the number of claimants were 17,372, which were split between 9,400 working age and 7,972 pensionable age claimants.

 

As at the end of September 2019 the amount of Council Tax Support awarded since 1 April 2019 is £14,498,125.

 

Due to some changes to support such as the removal of empty property discounts had made collection more difficult, however it was still expected that the long term collection rate would be 98.5%.

 

Local Welfare Provision

 

For the period 1 April 2018 – 30 September 2019 there had been 863 applications for Local Welfare Support.

 

There had been 408 crisis applications eligible for further practical support (47%) and included applicant receiving food, utility support, baby items/food, household items or clothing.

The spend for the period in respect to immediate practical support amounted to £4,133, this was in addition to the annual grant to the Food Bank £26,500 grant.

 

Universal Credit

 

Universal Credit (UC) replaced 5 state benefits.

 

There were 9,548 claimants on UC and of these 3,890 were required to look for work.

 

The UC working group continued to meet on a monthly basis and has a wider representation of organisations attend including De Paul Charity, to develop solution to local problems and sharing of skills and knowledge.

 

The Bay Food Bank had seen rising demand for food parcels and the working group was reviewing the process for referrals to the food bank and how to provide the best support.

 

Since the Full Service UC roll out in North Tyneside in May 2018 there had been a reduction of 4,134 in the number of working age residents claiming Housing Benefit, which represented 37% in working case load.

 

The Housing Department had 2,864 tenants on UC with 2,177 (76.01%) in arrears. The average arrears stood at £752.96 for those on UC, compared with £433.40 for all tenants and £268.70 for those not on UC.

 

AGREED that (1) the Welfare Reform – Financial update be noted;

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