Officers from the Welfare Benefits Service will update the meeting concerning the reform of the benefits system.
Minutes:
Councillor Dr. Chowdhury proceeded with the meeting in the absence of an elected Chair.
It was agreed that the agenda would be heard out of order.
Karen Wenlock, Revenue and Benefits Manager, was present to update the meeting on changes to Housing and Council Tax Benefits, which came into force on 1st April 2013.
Karen said the Council Tax Benefit scheme was replaced by a local Council Tax Reduction Scheme which applied to each working age household, but the scheme would look at pensioners in 2014.
Karen said the scheme compared residents income to need and calculated the amount of reduction, if any, residents were entitled to. Karen said it would result in people paying Council Tax for the first time. She said that if people found themselves in debt because of the changes it could result in court action, though the Council had a discretionary fund which had a limited budget to assist people who found themselves in difficulty.
Karen also informed the meeting of changes to the Housing Benefit system, which would see people’s benefits reduced to under-occupancy of accommodation (more bedrooms than required by the household or ‘Bedroom Tax’). Karen said the bedroom tax applied to working age people who claimed housing benefit and had at least one spare bedroom, and had been brought in to alleviate the shortage of family homes. The figures given were houses with one extra bedroom would receive 14% less in housing benefit (about £12 per week), and those with two or more extra bedrooms would receive 25% less benefit (about £22 per week).
Karen took questions from residents and Councillors. Karen said there were a few categories for exemptions, and residents were advised to speak with their own landlords, who would define the bedroom numbers in a property and not the government. Karen said each landlord would look at each case individually, as there was no definition of a room size. She said that the Council would look at each case on its own merits. Karen said that students living with parents would still receive a bedroom allowance, with a temporary absence with temporary return rule in place, for example, Christmas, Easter. She added that the room allowance would increase after a child reached the age of 16 years anyway.
Karen reported that the amount of weekly benefits (including housing benefit) would be capped, at £500 for a family and £350 for a single person, and would mainly affect larger families of working age with high rents. The Department for Work and Pensions would write to all people affected. Karen said there would be some exemptions and further information on the changes brought to the meetings attention could be found on the internet at www.leicester.gov.uk/housingbenefit
Karen then discussed the new Universal Credit due to be rolled out across the UK between 2013 and 2017. Karen said the changes would be run by the government, and it was not yet known when they would take place in Leicester. She said the Department for Work and Pensions would advise Leicester City Council of the families that would be affected, but government figures said that around 67,000 families in the UK would be affected by the change. She said that larger families could lose up to £500 per week when the changes were brought in. She added the Government would provide local authorities with a discretionary housing pot, though it would not be long-term assistance for residents.
The Chair thanked Karen for the presentation and update on welfare reforms.