Agenda item

To receive an update on the schemes that provide financial support to residents.

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).

Funding in 2021/22 was to be awarded in two parts with an initial payment of £309.105. The second payment of £123,428 was received in September bringing the total amount to £432,533. The combined total was a 23% reduction to that received in 2020/21.

With respect to the spend against the received funding the sub-committee was informed that of the £432,533, £296,951 had been spent or committed, leaving £135,582 uncommitted at the time of writing of the report. The sub-committee was provided the remaining amount at the 30 November of £98,871. It was highlighted that the amount available to the 31 March 2022. 

Local Council Tax Support Scheme  

The sub-committee was informed that at the end of quarter 2 the caseload stood at 17,256 (claimants’ being 9,864 working age and 7,356 pensionable age).

This was a reduction of 185 claimants reported in July, with the cost of the scheme being £15,601,887.

Local Welfare Provision

There had been 1,446 applications for Local Welfare Support, with all applications being offered a full screening, advice and information including signposting to partner organisations where appropriate. 

It was reported that there had been 910 crisis applications eligible for further practical support and the spend for the period in respect of immediate practical support amounted to £9,130.  This was in addition to the annual grant to the Food Bank of £40,500.

The sub-committee was informed that the Authority had received a new Housing Support Grant to support vulnerable residents to provide direct support up to 31 March 2022.

There was still funding with North East First Credit Union that allows the Authority to refer people with poor credit history who would be seen as higher risk customers, the opportunity to access reasonably priced loans.

A Member asked and assurance was given that further information to the number of people who have been referred to the Credit Union and the rates of interest that are charged for loans would be provided.

Universal Credit

Universal Credit (UC) replaced 5 state benefits, the number of people claiming Universal Credit was 18,847 which was a reduction to the 19,401 in July 2021.

All UC claimants had been notified in July of the reduction to their payments to ensure they checked their statements.

A Member raised that during the pandemic many people were made redundant and were unemployment for long periods. It was understood that employers considered long employment gaps before offering opportunities to attend interviews and it was asked if this issue could be raised with Job Centre plus as it was thought it would impact employment opportunities.

Officers indicated that this would be raised with Job Centre Plus Liaison Officers and the North of Tyne Combined Authority (NTCA) Good Work Pledge. 

Housing Department Update

The impact of UC continues to be felt by the housing department and they now have 4,640 tenants on UC at 3 October 2021. 3,282 (70.73%) of these are in arrears although it is worth noting that 62.19% of those on UC were already in arrears when they moved onto UC.  

The average arrears for those on UC was £548.40 (this has reduced since last quarter) compared to an average arrears of £553.56 for all tenants and £325.55 for those not on UC.  Other housing providers are also advising of significant arrears with tenants in receipt of UC.

Covid-19 had a large impact on housing tenants with 1,346 of tenants reporting that they had been adversely impacted, with 132 tenants (9.81%) reporting an adverse impact on more than one occasion.

Agreed that (1) the Welfare Reform – Financial update be noted; and (2) information requested be provided to the matters discussed.