Agenda item

IMPACT OF WELFARE REFORM

The Director of Finance submits a report that details results of the initial six month analysis of the impacts of Welfare Reform upon city neighbourhoods and service delivery. The commission is asked to note the impacts and trends highlighted in the report and comment on the analysis and initial findings.

Minutes:

The Director of Finance submitted a report that provided details of the initial six month analysis of the impact of welfare reform upon city neighbourhoods and service delivery. The Head of Revenue and Benefits presented the report and circulated an appendix which is attached to the back of the minutes. This may be viewed on line at www.cabinet.leicester.gov.uk

 

Alternatively a copy may be obtained by phoning Democratic Support on 0116 454 6357.

 

The Head of Revenue and Benefits explained that some families were already feeling the effect of the welfare reform, but it was expected that this impact would be felt even more acutely in the next year or two. The implementation of universal credit, which was designed to help buffer any adverse effects of the changes, had been delayed and would not take place until 2016/17. However Discretionary Housing Payments, which had been expected to decrease, had been maintained in order to combat this delay.  The commission heard that a further report would be brought back around March time which would include an update on food banks.

 

A member expressed a concern that although the statistics for his ward demonstrated that residents there had been particularly badly hit by welfare reform, his case work had not increased. He expressed a hope that this meant that the information the council were sending out was reaching people in need. The Assistant City Mayor for Neighbourhood Services explained that support was focussed onto the most vulnerable families, although there was concern that some people appeared to be trying to manage and did not seek help until they had reached crisis point.

 

A query was raised relating to the collection of council tax and the Head of Revenue and Benefits explained that the collection rate had been reasonably robust so far, but it was recognised that the changes in welfare benefits were likely to result in a higher proportion of bad debt.

 

Further comments were made as follows:

 

·         In respect of the ‘Help to Work’ scheme, a concern was expressed that the scheme needed to take account of people’s disabilities and mobility issues.

 

·         Statistics indicated that the number of people given sanctions or adverse decisions by the Job Centre Plus appeared to be higher in Leicester than elsewhere and the reason for this was queried. Members asked for a representative from the Job Centre Plus to be invited to a future meeting to respond to some of the questions and concerns from members.

 

·         Concern was expressed for those families who were finding it difficult to manage because of the changes to their benefits. A member of the commission explained that he had spent several hours trying to help a family who had been without food for two days.

 

·         Praise was given to staff in the Money Advice Service; it was acknowledged that the service made a positive difference.

 

·         Concern was expressed at the number of cases that had been referred to the magistrates court, where families faced eviction because of rent arrears. The Assistant City Mayor explained that this issue fell within the remit of the Housing Scrutiny Commission, rather than the Neighbourhood Services and Community Involvement Scrutiny Commission. However, members heard that the council offered as much support as possible; although they could not force people to take up that help.

 

·         A query was raised relating to the current position of the Clockwise CUBA accounts. The Head of Revenue and Benefits responded that the CUBA accounts were being promoted by the Housing Division; however it was proving difficult to persuade some people to take advantage of the scheme. Clockwise were also trying to progress the scheme to the private rental sector.

 

The Chair requested that council tax collection figures be brought to the scrutiny commission in June along with a report on the mapping / locality of the welfare reform support services.

 

RESOLVED:

1)    that the report be noted;

 

2)    that a further report, to include information relating to food banks be brought back to the commission in the very near future;

 

3)    that reports be brought to the commission in June on council tax collection figures and on the mapping / locality of welfare reform support services; and

 

4)    that a representative from Job Centre Plus be invited to a future meeting of the commission to provide a briefing on their service.

Supporting documents: