Issue - items at meetings - Managing the impact of Housing Benefit changes arising from welfare reforms

(1)       That it be agreed to extend the ‘no eviction’ policy for a further 12 months until the end of May 2015, and that it be further agreed that the wording of the policy commitment remains unchanged.  (The suggested amendment set out in paragraph 4.7.7 is not agreed).

(2)       That it is re-affirmed that officers deal fairly and firmly with tenants who seek to avoid paying their rent and accrue debt on the basis of ‘won’t pay’ rather than ‘can’t pay’.

(3)               That it is re-affirmed that officers continue to manage council lettings so as to provide under-occupying tenants struggling to meet their financial commitments with more affordable accommodation choices.

(4)               That it is agreed that officers continue to provide all council tenants with clear advice and assistance that supports them in meeting their rent payment and service charge obligations

(5)       That officers continue to monitor the impact of the policy and provide a report back to Housing Committee in Autumn 2014

(6)       That it is agreed that consent be sought from the Government to continue to use HRA funding to support additional Discretionary Housing Payments (DHP) for council tenants, supplementing the council’s overall DHP fund.

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73.1    The Committee considered the report of the Executive Director Environment, Development and Housing which stated that in May 2013 the Housing Committee agreed a time limited and carefully worded ‘no eviction’ policy for qualifying council tenants adversely affected by welfare reform housing benefit changes related to under occupation.  Based on an assessment of the policy to date, the current report made recommendations on extending the policy for a further time limited period.  The report was presented by the Head of Income, Involvement & Improvement. 

73.2    Councillor Wilson referred to paragraph 4.7.4 and expressed concern at the statement that it was possible that misinterpretation of the ‘no eviction’ policy had in part contributed to the £222k (35%) increase in all current tenants’ arrears.   Councillor Wilson referred to paragraph 4.7.7 which set out the current policy and suggested an amended commitment.  She noted that recommendation 2.1 did not make any reference to the amendment and suggested it would be helpful to include any changes to the policy in the recommendations.

73.3    Councillor Mears referred to paragraph 3.5 and stated that it was worrying that 45 people had made no rent payments in the last three months. Councillor Mears asked for reassurance that if the wording in paragraph 4.7.7 was changed, that this would not cause more problems around budgeting constraints.  

73.4    Councillor Peltzer Dunn noted that the amended policy should refer to 2015 not 2014. 

73.5    Councillor Wilson referred to paragraph 4.7.8 and asked if any other support was available to tenants apart from mutual exchanges.  

73.6    The Head of Income, Involvement & Improvement explained that the support was aimed at mutual exchange.  The Council was trying to support the circulation of stock and to support tenants who were under occupying.  

73.7    Councillor Barnett asked if smaller meetings could be set up for people who wanted to exchange within areas such as Hangleton and Whitehawk. 

73.8    The Head of Income, Involvement & Improvement replied that that mutual exchange moves were pinpointed down to postcodes.   Officers were planning to hold more mutual exchange events.  With regard to the other points made, it could not be proved that misinterpretation of the ‘no eviction’ policy had in part contributed to a 35% increase in all tenant arrears.  The message officers were trying to send was that tenants who were experiencing difficulty in paying rent should engage with the council.  It was not possible to provide support if there was no engagement.  

73.9    Councillor Mears stressed that 45 people were paying nothing and expressed concern that this number might increase.  She asked what steps were being taken by officers to deal with this problem.   The Head of Income, Involvement & Improvement explained that if people were not paying rent they would be served with a notice.  Some cases would be carried through to the courts.  However, if the debt was not at a high level officers might not want to pursue the case through the courts.    Councillor Mears replied that this was the period when intense action should be taken, otherwise the debt would grow.  Action needed to be taken to get people onto a payment plan.  

73.10  The Head of Income, Involvement & Improvement explained that as well as mutual exchange, there was also a new service based on encouraging people to move.  If people were in debt they would be asked to considered moving as an option. 

73.11  Members discussed the wording of the current ‘no eviction’ policy with the suggested amendment in paragraph 4.7.7.   The Senior Lawyer confirmed that the wording of the suggested amendment should be altered to read May 2015 not May 2014. 

73.12  Councillor Duncan considered that there was a significant difference between the existing policy and the suggested amendment.  He considered that the original wording was better and should be extended for another year.  

73.13  Councillor Peltzer Dunn could not see a problem with the suggested amendment as the last line still read that officers would use all means other than evictions and bailiffs to recover rent due.   

73.14  The Chair stated that his concern was that tenants who were unwilling to move would not comply with the new policy.  They might have very good reasons why they did not want to move.   His preference was for the original policy. 

73.15  Councillor Peltzer Dunn referred to the first line of paragraph 4.7.7 which concerned the council’s duty with regard to financial matters.  He asked for legal advice about this issue.

73.16  The Senior Lawyer explained that the risk was low as the extension was limited for a year.  This would not be considered a breach of care to other tenants. 

73.17  RESOLVED -  (1) That it be agreed to extend the ‘no eviction’ policy for a further 12 months until the end of May 2015 and that it be further agreed that the wording of the policy commitment remains unchanged.  (The suggested amendment set out in paragraph 4.7.7 is not agreed). 

(2)       That it is re-affirmed that officers deal fairly and firmly with tenants who seek to avoid paying their rent and accrue debt on the basis of ‘won’t pay’ rather than ‘can’t pay’.

(3)               That it is re-affirmed that officers continue to manage council lettings so as to provide under-occupying tenants struggling to meet their financial commitments with more affordable accommodation choices.

(4)               That it is agreed that officers continue to provide all council tenants with clear advice and assistance that supports them in meeting their rent payment and service charge obligations

(5)       That officers continue to monitor the impact of the policy and provide a report back to Housing Committee in Autumn 2014

(6)       That it is agreed that consent be sought from the Government to continue to use HRA funding to support additional Discretionary Housing Payments (DHP) for council tenants, supplementing the council’s overall DHP fund.

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