Agenda item

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

The Sub-committee considered an update report on the three schemes that provide financial support to residents, that were implemented or revised in April 2013 onwards because of on-going welfare reform, as well as an update on Universal Credit.

Discretionary Housing Payment Fund

The Discretionary Housing Payment (DHP) fund, administered by Local Authorities on behalf of the Department for Work and Pensions (DWP) with the aim at being a temporary payment, which provides support, just at the right time, to people in financial difficulties who have a shortfall between their rent and Housing Benefit (or Universal Credit including the housing element).

Citizens Advice financial advice continues to work well and regular reporting of overall outcomes shows the significant monetary value their advice has on debts written off, income gain and rescheduled payments.

The position of spend against the grant as at 30.06.20 showed the level of unallocated funding stood at £296,533. The level at 17.11.20 stood at £286,000, approximately 50% of the fund provided.

It was stated that arrears letters were being mailed out and there was an expectation this would prompt an increase in DHP claims.

A Member asked if rent arrears letters provided information to tenants to how to access help available. In response it was stated that DHP payments would not be appropriate, however help maybe available through the Hardship Fund.

Local Council Tax Support Scheme

The demand on the scheme showed a different picture in the current year compared with years previous, where instead of seeing a reduction in claims as normal, there had been a 7% increase in working age caseload since the middle of March 2020.

This was associated to the current pandemic situation where more working age people had seen reductions in their income and job losses, placing increased pressure on the cost of the scheme and as at 30.09.20 17,602 claimants were in receipt of CTS, 9,938 working age and 7,664 pensionable age with a cost of awards since April of £15,371.960 . There was anticipated further increases following the end of the government furlough scheme where some employers may decide to reduce their workforce.

Hardship Fund

As part of its response to COVID-19, the Government announced in the Budget on 11 March that it would provide local authorities in England with £500m of new grant funding to support economically vulnerable people and households in their local area.

The Hardship Fund allocation to North Tyneside Council amounted to £2,024,000 and would aid those who would struggle to meet Council Tax Payments.

There was a strong expectation by Government, was that billing authorities would primarily use their grant allocation to reduce the Council Tax liability of individuals in their area, using their discretionary powers under s13A(1)(c) of the Local Government Finance Act 1992 and award up to £150.00 to each working age Council Tax Support recipient. Any residual funding could then  be used to deliver increased financial assistance through other local support mechanisms, having considered local circumstances.

The hardship payment had made a significant difference to working age Council Tax Support claimants in that around 58%  had no Council Tax liability for 2020/21 to pay and many only had very small amounts to pay.

Work was ongoing through the COVID-19 Recovery Work Stream on Welfare & Benefit Support including Hardship Fund to continue to deliver the hardship funding.  Over 10,000 residents had been supported and £1.65m of the hardship funding had been used.   

A member asked if the Hardship fund was available to small businesses effected by covid-19 and not receiving support.

In response it was stated that Handship Fund was only available for individual resident and tenants, however there were specific grants to support for hospitality and Leisure sectors. The additional discretionary restriction grants of £4m was also available and work was on going to assess the necessary the criteria for its use.

A member asked and it was confirmed that the fund would be promoted.

Local Welfare Provision

Statistics for the period 1st April 2020 to 31^st October 2020 demonstrated a 30% increase and there had been 714 applications for Local Welfare Support in comparison to the 550 in the previous year.

All 714 applications were offered a full screening, where further advice and information including signposting to partner organisations was offered where appropriate.  

There had been 325 crisis applications eligible for further practical support, which included applicants receiving food, utility support, baby items or baby food, essential household items, travel costs or clothing.

Spend for the period in respect of immediate practical support amounted to £4,060 and this was in addition to the annual grant to the Food Bank of £26,500 which was paid in this quarter.

There was still funding available from the North East First Credit Union which allows the Authority to refer people with poor credit history who would be seen as higher risk customers, with the opportunity to access reasonably priced loans. This was a one-off funding; customers are charged interest which goes back into the fund to be used by other customers.

It was stated that referrals were directed to the credit union after an assessment by the welfare staff team and four people had taken up loans for household goods.  The credit union were now able to take applications online which had simplified the process simpler and quicker for customers in crisis.

Covid 19 update

The impact of job losses had seen people who had not accessed support in the past had been supported due to covid-19.

  In addition to support to applicants there had also been a grant for emergency assistance with food and essential supplies of £239,000 which was announced by Government in July, allowing further support to those who would not have been eligible for support in the past.  In the period since grant received 37 applicants had been supported on 60 occasions.

It also allowed funding provision to 14 community projects who applied for grant support to provide services for those in their areas who had been impacted by COVID and were in food poverty and lacking essential services.

Demand for food parcels immediately increased on 2 November following the announcement of the second lockdown to commence on 5 November.

Universal Credit

North Tyneside Universal Credit UC claims had risen from the March 2020 figure of 11,000 to over 18,000 claimants in November where of the 18,000 claimants, 8,400 were actively seeking work group.

COVID-19 demonstrated increased impact on housing tenants with 1,204 tenants reporting that they had been adversely impacted.  This had contributed to the significant increase in the number of tenants claiming UC, with an additional 1,085 UC cases being recorded since 16 March 2020; 439 of these new UC claimants informed this was due to the impact of COVID-19.    In total 694 tenants on UC have informed us that they have been impacted by COVID-19.

A Member requested if a section on the Poverty Intervention Fund could be an additional section for reporting to the sub-committee.

A member requested to the number of UC Claimants who were taking up the offer of using a work coach. It was stated that the Job Centre Managers did not monitor the number of approaches but officers would inquire if monitoring of coaching approaches could be considered.

Agreed that the Welfare update report be noted.