Agenda item - Universal Credit update

Joint report of Executive Director, Finance and Resources & Executive Director, Neighbourhoods, Communities & Housing (copy attached)

7.1       The Committee considered a report of the Executive Director, Finance and Resources the purpose of which was to provide an update on the rollout of Universal Credit (UC) in Brighton and Hove and further intelligence on the impact of other associated welfare reforms.

7.2       It was noted that the Universal Credit Full Service had rolled out across Brighton and Hove between October 2017 and January 2018. It was payable to those of working age, those of pensionable age were excluded. According to published statistics there were 920,000 households nationally in receipt of Universal Credit (UC). There were currently 5, 564 households in the city in receipt of Universal Credit Of those 1,266 were previously in receipt of Housing Benefit and had had their claim for that ended as a result of the claim for Universal Credit. The other claims were from people who had made new claims or had not previously made a claim for housing benefit. The council estimated around 20,000 households would eventually move onto Universal Credit. The Head of Revenues and Benefits, Graham Bourne, explained that at present rollout only affected households who automatically moved to UC; and that this only occurred when one or a number of changes to circumstances took place. It was the Government’s stated intention to move remaining households onto UC between 2019 and 2023 and that at that point claimants’ would be expected to make new claims rather than go through a process of automatic transition.

7.3       It was highlighted that the report to the Committee of 3 July 2017 had set out what the council had considered were the key risks presented by the introduction of UC. Since that time the Government had made a number of changes to the way that the scheme operated as set out in the report, with further changes announced on 7 June 2018, although the legislation to enact them would not be brought to parliament until Autumn 2018. The council’s own approach to managing the impact of UC had been to adopt a cross-service approach; the perspectives of third sector partners regarding the impact of UC measures being taken to mitigate that and to assist those who needed to make claims through Digital Brighton and Hove formed were the subject of separate presentations following consideration of this report.

7.4       The Revenues and Benefits Manager, Paul Ross-Dale, explained in answer to questions that whilst a significant programme of work had been undertaken within the council the changes presented by the introduction and scale of UC, had meant that council services and relevant stakeholders were dealing with a fundamental shift in the way that citizens on low incomes were supported, to illustrate that point a series of anonymised individual case studies had been set out in order to provide members with a flavour of the diversity of cases dealt with and details of how the council had sought to respond to them.

7.5       The clearest area of financial risk to the council had been the potential impact on rent collection for both Housing Rent account and temporary accommodation properties and in order to address that the council had taken a number of steps to support its tenants and to protect rental income. Whilst it was too early to provide meaningful figures for arrears enforcement action such as the serving of notices and evictions the council was strongly committed to taking action only as a last resort where tenants did not engage or accept the support which was offered to them. Tenants in arrears were always offered a payment plan which was tailored to the individual to ensure that they were able to repay their debt over a reasonable time period. In answer to questions, the Executive Director, Neighbourhoods, Communities and Housing, explained that currently, the figure for rent arrears had risen very slightly and that temporary accommodation was now exempt although there had been no evictions for temporary accommodation, nor had any tenants been evicted from permanent accommodation at present.

7.6       Councillor A Norman referred to those who were self-employed but might also be on a low income, although probably small in number, such individuals could be particularly vulnerable when seeking to make a claim. Also, to concerns which arose in consequence of financial considerations within the legislation being largely driven by a default position of rent being paid directly to the claimant rather than the landlord, with single large monthly payments being paid, five weeks after a claim had been made.

7.7       Councillor Morgan acknowledged all the work and had been undertaken which had dealt with in a neutral, balanced manner whilst seeking to provide support to those who were the most vulnerable. It was concerning that the proposed changes had been announced in June but would not be effected in legislation until the autumn. Although these changes were intended as improvements it was difficult to judge what their impact might be at this stage.

7.8       Councillor Page welcomed the pro-active approach which had been taken and the input to the DWP which had taken place. He remained concerned however at the potential in-built delays that could occur and the impact that could have on some of the most city’s most poorest and vulnerable residents.

7.9       Councillor Cattell, referred to the disproportionate impact on women and children, hoping that the changes made would address and improve on that.

7.10    Councillor Peltzer Dunn whilst welcoming the work undertaken continued to have severe reservations about how Universal Credit worked in practice and its impact overall. Clearly, as evidenced by the fact that changes had been made there was recognition that it was not working as intended and it was up to this authority and others to highlight areas of concern whilst continuing to seek to make the scheme work.

7.11    Joanna Martindale, Hangleton & Knoll Project referred to the pro-active approach which had been adopted and the collaborative work which had been carried out with third sector partnership organisations.

7.12    Councillor West stated that he considered it regrettable that Central Government was continuing with UC and was of the view that any dampening down of policy would still have a negative impact. It was important to continue to lobby against this draconian system and to highlight its flaws.

7.13    RESOLVED - That the Committee notes the latest available information as set out in the report regarding implementation of Universal Credit in the city.