Agenda item

Welfare Reform - Financial update

To receive an update 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.

Minutes:

Discretionary Housing Payment Fund

 

The Committee was informed that the authority was managing a much smaller budget that it had available in previous years that would prove a challenge for many households in the current difficult financial environment.

 

The authority continued to work well with Citizens Advice and signpost households to their support and advice where appropriate.

 

The total committed funding was £192,804 with a further £107,150 unallocated.

 

Local Council Tax Support Scheme

 

The caseload as at the end May stood at 16,359 (7,266 pensionable age and 9,093 working age) which was a reduction of almost 500 claims against the number reported in March. The cost for the scheme was £16,591,215.

 

A member requested what support was being provided to help with the cost of school clothing. In response officers stated that information would be provided on accessing support and where further information could be found on the Council website.

 

 

Hardship Fund

 

The hardship payment of £150.00 continued to support working age claimants, with 56% of claimants having a nil liability for 2022/23.

 

Local Welfare Provision

 

For the period 1 April 22 to 17 June 2022, there had been 1,072 applications for Local Welfare Support.

 

All 1,072 applications were offered a full screening, with advice, information and signposting to partner organisations where appropriate.

 

There were 573 crisis applications eligible for further practical support that included receiving food, utility support, baby items or baby food, essential household items, travel costs or clothing.

 

Spend for the period in respect to immediate practical support amounted to £21,238.

 

This was in addition to the annual grant to the Food Bank of £29,934.14 which was paid in April 22.

 

 

Universal Credit

 

The number of Universal Credit claimants was high but reducing, with 18,451 claimants, a small reduction against the figure reported in March.

 

The committee was informed that the Cost of Living payments would be awarded to Universal Credit claimants in two payments one for £326 then another payment later in the year for £324. A member requested what criteria would be applied to claimants. Information to the required criteria would be forwarded to members for their information.

 

Housing Department Update

 

The Authority housing department had 5,256 tenants on Universal Credit (UC) as at 15 June 2022. 3,865 (73.53%) were in arrears. It was noted that 68.43% of those on UC were already in arrears when they made the current claim for UC.

 

The average increase per case since the claim for UC was £147.04. The average arrears for all tenants had decreased in the last quarter, those on UC was £767.28 compared to an average arrears of £575.39 for all tenants and £308.67 for those not on UC.

 

Other housing providers continue to advise of significant arrears with tenants, including those in receipt of UC.

 

Covid-19 had a large impact on housing tenants with 1438 of tenants reporting that they had been adversely impacted. 132 tenants (9.18%) reported an adverse impact on more than one occasion. This had contributed to the significant increase in the number of tenants claiming UC, with 822 tenants on UC, 80 tenants on legacy benefits and 536 self-paying tenants had been recorded as having been impacted by Covid-19.

 

The Authority housing department continued to make use of all available funding and services from internal and external providers to maximise tenants financial position and improve their ability to sustain their tenancy.

 

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

 

Supporting documents: