Agenda item

Darren Moore, Team Manager, Advice Services will be present to talk about the extensive changes that are taking place to welfare benefits.

Karen Wenlock, Revenue and Benefits Manager gave an update on the changes of welfare benefits.  She explained that very significant changes were being made by the Government to the benefit system; however these only affected people of working age. Details of these changes are outlined in the Changes of Welfare Reform booklet, attached to the back of these minutes. A booklet providing information on the advice services is also attached.

Karen explained that major changes were being made to the council tax benefit scheme. From April that scheme was to be replaced by a local Council Tax Reduction scheme and many working age people in Leicester would have to pay something towards their Council Tax for the first time. People were being encouraged to contact the council straight away to make arrangements to pay the new bill.

Changes were also being made to Housing Benefit entitlement, for working age people, living in social housing (where the landlord was the city council or a housing association). The level of Housing Benefit was to be restricted if they were shown to be under occupying their property (generally referred to as the bedroom tax). The change did not mean that people who had a spare room would pay more but that if their household was not considered to need the number of bedrooms in the property, as children of certain ages were expected to share, then a reduction would be applied. The council did not have sufficient smaller accommodation to house everyone who was due to have their housing benefit reduced because of the under occupation rules. They were however working with Housing Options and other stakeholders to give people relevant advice on what options are available, and a Discretionary Housing Payment could be applied for to assist in the short term while options were considered.

The meeting heard that the benefit cap would not be introduced in April 2013 as originally planned the timetable had altered to be phased in before September 2013. Please note that subsequent to this meeting the date has been confirmed by the Department for Work and Pensions to by 15^th July 2013. The new universal credit system was not due to roll out until October 2013.

A query was raised as to the situation if a single person was the sole occupier of a council/housing association two bedroom flat. Karen responded that he would have to pay more for this under the new regulations.

A concern was raised as to the situation if an elderly person lived on her/his own in a two bedroom accommodation, but occasionally needed a carer to stay. Karen explained that the under occupation rules applied to working age people only. (However it was noted that if a working age person needed a carer there are circumstances where a room allowance could be given if a bedroom was used for this purpose. Details would need to be given to the Revenue and Benefits section so consideration could be made)

Karen explained that details of the changes were available on the council’s website at:

http://www.leicester.gov.uk/search/?q=welfare%20reform%20changes&pageNo=1

Karen added that staff were doing their best to keep the site updated as further details and changes were notified.