Agenda item - Welfare Reform Changes

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24.1    Ododo Dafe presented the report on Welfare Reform Changes stating that universal credit will be introduced next month and that it is likely to initially have a significant impact on a small number of people. She noted that Universal credit will now only be available to people over 21.

24.2    Janet Gearing stated they are only providing a specific amount and enquired how much extra will be required.

24.3    Ododo Dafe stated supply and demand are one of many reasons for rent prices. She clarified that if capped families have to pay certain bills, they will need to offset the payment from somewhere else. She noted this was a bid to promote people in to a job and to find work. She clarified that whilst only available to single persons in its infancy, other groups will be introduced later on. She emphasised that people will be encouraged to practice budgeting.

24.4    Janet Gearing warned of incoming issues regarding the 6 week wait for people.

24.5    Ododo Dafe clarified that the process currently followed is more complicated as all rent is due on a Monday and in advance. With universal credit it will be on an individual date per person; BHCC will spend more money chasing rent payments from tenants.

24.6    Janet Gearing enquired if BHCC has to help homeless people.

24.7    Ododo Dafe stated that BHCC does have to offer some assistance although not housing, there is a discretionary fund for people in stress. She noted that this fund will become overly requested soon and warned of a possible vicious circle of decisions having to be made such as food/fuel and eat/heat which may contribute to physical and psychological health concerns.

24.8    Mary Whitner enquired if the aforementioned changes apply to pensioners.

24.9    Ododo Dafe confirmed that pensioners will not be affected.

24.10  Nick Kitson stated that people who currently receive tax credit won’t see a large drop, he noted that it is to be more of a delay rather than a drop. He clarified that 3 million people will experience loss later on once universal credit is adopted. He noted that Brighton is the last place to experience this in the country.

24.11  Janet Gearing enquired if universal credit will available to those on low wages supplemented with working tax credit.

24.12  Ododo Dafe confirmed this would happen.

24.13  RESOLVED – that the report be noted.