Agenda item

Suzanne Collins, Property Lettings Manager at Leicester City Council, will be present to give an update on the extensive changes that are being made to welfare and benefits.

Mike Watson, Income Collection Manager and Suzanne Collins, Property Lettings Manager were present to provide an update on the changes to the welfare and benefit system. Information relating to the forthcoming changes was distributed at the meeting and a copy of this leaflet is attached at the back of these minutes.

The meeting heard that the changes were brought in by the Government and the council had no choice but to implement the new changes. The reforms affected those people predominately of working age.

The forthcoming changes included the following:

Council tax benefit changes

Council tax benefit would be abolished from 1 April 2013 and would be replaced by a new council tax reduction scheme. From April 2013 each working age household would have to pay towards their own council tax. People who had not paid in the past because they had received maximum council tax benefit, would now be required to pay something.

Benefit Capping

The weekly amount of benefits (including housing benefit) would be capped at a maximum of £500 for a family and £350 for a single person, although there were exceptions to this. It was estimated that nearly 600 households in Leicester may face a reduction in their benefit as a result of the government’s reforms.

Bedroom tax

From April 2013, people who lived in council housing or a housing association property and were classed as under occupying would get a reduction in housing benefit. Houses with one extra bedroom would result in 14% less housing benefit (about £12) per week.

A question was raised as to the situation for people of pensionable age where they had a spare bedroom and Mike explained that generally people aged over 62 years of age would not be affected by bedroom tax.

Universal Credit

This benefit would replace income support, job seeker’s allowance, employment and support allowance, housing benefit and tax credits. Recipients would no longer receive fortnightly payments, but would receive all the money in the form of one payment, which would be paid once a month in arrears. People would also be required to set their own budget and pay their rent themselves.  Universal Credit had already been introduced in 6 pilot sites around the country and the scheme was due to be rolled from October 2013 onwards.

The meeting then received an overview of the position in Leicester and how many people would be affected.  Members of the public were assured that staff at the council were making every effort to offer support to people affected by the changes. Staff had carried out approximately 700 home visits, to raise awareness of the changes and more visits were planned. There had also been letter drops and advice surgeries.  The council were also working with financial institutions such as credit unions. Work was also taking place on the development of Credit Union Budgeting Accounts (CUBAs) as a way to help people manage their own budgets.

Help was also available through the council and a variety of agencies as detailed in the leaflet attached to the minutes. People who were affected by the changes were urged to act straightaway and talk to their landlord if appropriate.

Mike and Suzanne were thanked for attending the meeting.