The Community Meeting to receive a presentation on the forthcoming major changes to Welfare Benefits.
Minutes:
Jane Gallagher, representing Revenues and Benefits at the City Council attended the meeting and outlined the changes to Welfare Benefits that were coming into force during 2013 as a result of legislation set out within the Welfare Reform Bill. The changes outlined below were being implemented by the Government and the City Council would offer support within the savings imposed.
Jane stated that, from April 2013 four major changes were to be implemented, as follows:
Council Tax Benefits
Scheme was being drawn up by the City Council but had not yet been finalised.
Jane stated that anyone currently in receipt of Council Tax Benefit the changes would automatically roll over as this benefit would cease. Only Working Age people would be affected by the changes, not pensioners. Everyone would have to pay at least 20% towards their Council Tax Bill, although those with exceptional hardship would fall within the discretionary scheme yet to be finalised.
Social Rented Sector
Jane stated that the Government had set criteria whereby working age people in receipt of benefits would have the number of bedrooms set in relation to the size of their family. If it was deemed that a family was under-occupying a house, for example:
Family of husband and wife and 1 boy and 1 girl living in 4 bedroomed house
(1 bedroom per husband/wife, 1 bedroom for boy (over 10yrs under 16yrs), 1 bedroom for girl (over 10yrs under 16yrs) = 3 bedrooms)
then an extra charge of 14% would be made for the 1 extra bedroom
(25% extra charge for 2 extra bedrooms).
Note:
Children under 10 would be expected to share a room irrespective of age, whilst children under 16 would be expected to share respective of gender.
Local Housing Allowance – frozen for one year, this was based on rents charged within the area.
Amount of Benefit – amount of benefits going into a household would be capped at £500 for families and £300 for single persons. Families with three or more children would be affected by the changes and have their benefits reduced.
Crisis Loans – no longer to be handled by Department for Work and Pensions but instead by the Leicester City Council, amounts granted to be capped.
It was stated that the City Housing Department had been doing a lot of work on these changes and letters had been sent to those tenants that would be affected. Some tenants would be affected by one or more of the changes. Housing Department were in the process of changing the Allocations Policy to take account of the Welfare Benefit changes.
Jane stated that a lot of the changes already in place would fall into line with Universal Credit. Housing Benefit would now fall under the Universal Credit system and form one monthly lump-sum payment, this would also include Council Tax and Carers Grant (where applicable). This payment would be made direct to a member of the household and not to landlords as previously. The Government had made it clear that they want people to be responsible for their own households.
When Universal Credit was fully implemented by October 2017 Housing Benefit would no longer be implemented by the Council but by the Department of Work and Pensions.
The Chair stated that, in her opinion, levels of publicity to local parents had been minimal. Every household in the area would be affected by some or all of the changes outlined but those with mental health problems would likely cause the greatest concerns. New applicants for benefits, excluding Housing Benefits, currently faced 36 week delay and then would be subjected to means testing.
Safeguarding Children with Care Orders were not affected by the proposals, but as soon as the Care Order had finished they would be. Under 25’s would not be able to claim Housing Benefit for single occupancy. Single Parents, for example, would be hit particularly badly on Netherhall estate. Being given one lump sum to pay all of their bills was not fair, they would not be able to cope and support would need to be given. More information on the various changes was required in the Humberstone/Hamilton/Netherhall areas.
Councillor Patel stated that she had also got concerns that too few people in the City were aware of the comprehensive changes that were about to come into force.
Jane informed the meeting that a Forum was being held in the Adult Education College, Wellington Street, Leicester in February, involving Support for Tenants And Residents (STAR) and Energy Advice. Publicity for this Forum was still being finalised and Council Tenants, Young People and Single People were to be targeted.
Jane stated that any suggestions on how best information could best be got out to tenants would be welcomed.
An initial suggestion was to stage Advice Surgeries in Hamilton in the Sure Start Centres for example. Further suggestions were around putting large size posters on notice boards and in schools and Leisure Centres. A member of the public suggested Radio Leicester be used but was informed that previous attempts to publicise the Welfare Benefits changes on Radio Leicester had been turned down on the basis that the topic was ‘too political’.
In summing up Councillor Patel stated that the City Council were trying to make the best out of a bad situation. The reality was that pressure was coming from all sides, the Budget Cuts started the pressures and now these comprehensive changes were set to make the situation worse but unlike previous occasions there was now no cushion available to soften the blow.
RESOLVED:
that the information be noted.