Agenda item

Briefing Note of the Executive Director of Resources

The following representatives have been invited to the meeting along with Councillors Bigham and Thomas, Cabinet Member and Deputy Cabinet Member for Community Development:

Janet Gurney, Coventry Law Centre

Alan Markey, Coventry Independent Advice Service

The Committee considered a Briefing Note of the Executive Director of Resources which provided an update on Welfare Reform changes to the Department for Works and Pensions (DWP) benefits and, in particular, the impact for Coventry residents. Janet Gurney, Coventry Law Centre and Alan Markey, Coventry Independent Advice Service, both representatives on the city’s Welfare Reform Working Together Group, attended the meeting for the consideration of this item. Councillor Bigham, Cabinet Member for Community Development also attended.

The Briefing Note included the following appendices:

·  1 – Briefing note highlighting recent changes to Universal Credit, the Benefit Cap, the effects on Coventry and use of Discretionary Housing Payments and Community Support Grants;

·  2 – Distribution of potential impacts Benefit Cap changes;

·  3 – Summary of benefit changes made in 2016 and timetable of future changes 2017/18

·  4 – Coventry Working Together on Welfare Reform Action Plan.

·  5 – Communications Plan for changes to benefit cap.

·  6 – Benefits Cap Case Studies

An additional paper from Janet Gurney and Alan Markey, setting out suggested actions which could be considered as ways to address issues arising as a consequence of the welfare reforms planned during 2017-2018, was tabled at the meeting.

The Briefing Note at Appendix 1 indicated that Universal Credit (UC) was a single payment of benefit, including housing costs, for working age people administered by the DWP. It was introduced in Coventry in December 2015 for single working age people.  A partnership agreement with the DWP allowed the Council to receive and exchange information in relation to UC so housing benefit could be cancelled if a claim for UC was made. Since this introduction a total of 211 claims had been cancelled. The Committee were informed that the agreement also required the Council to provide budgeting support for those who needed help with managing their finances and to date 195 people had been referred for budgeting support.

The Government had introduced changes to the benefit cap which reduced the maximum amounts households could receive in benefit to £385 a week for couples and families with children (£20,000 per year) and £259 for single people with no children (£13,400 per year). Details about exemptions to the cap were outlined. These new levels for current ‘capped’ households took effect from 7^th November, 2016 and there were currently 91 households subject of this new cap.

The Committee noted that this cap was to be applied to new households on 23^rd January, 2017. An analysis of data received from DWP indicated that there would be an estimated 761 new capped households which included 348 households with 4 or more children who would lose on average £104 of weekly benefit. It was anticipated that the total number of children expected to be affected would be 2,711. Also, approximately 50 troubled families known to the Council were likely to be affected.

The Committee were informed that a Discretionary Housing Payment (DHP) grant was given to each Council by DWP to help households struggling to meet their housing costs. For 2016/17 Coventry was awarded £788,669. To date, there had been an increase in applications this year compared to the previous year. DHP could be awarded to provide short term financial help to those affected by the cap, however, due to a limited budget the council could only offer assistance for the first six weeks.    

The Council also administered a discretionary Community Support Grant (CSG) for people who needed financial help. The budget was £375,000 and from April to November, 2016 £240,146 had been awarded compared to £136,750 at the same point the previous year. The Committee noted that there had been an increase in applications.

Further information was provided on the support and advice provided by the DWP, the Benefit Service and the Welfare Reform Working Together Group.

The Committee were informed that although representatives from the DWP were unable to accept an invitation to attend this meeting, Claire Hindson, the new District Manager had responded by outlining her priorities and offering to meet with the Committee to discuss ways of working together.

Members questioned the officers and representatives present on a number of issues and responses were provided, matters raised included:

·  Further information about what was being done to target those in greatest need to ensure that they claimed all they were entitled to

·  Clarification about what could be covered by the Community Support Grant

·  Information about what assistance was available following the expiry of the six week DHP period

·  Further information about the impact of the introduction of the minimum contribution to Council Tax introduced the previous year and the associated level of collection rate

·  Concerns about the lack of availability of affordable housing for large families to move to when attempting to reduce their housing costs

·  How far the DWP took into account ‘human opinion’ when considering whether to sanction individual cases

·  What representations were being made to Government about the partner concerns relating to the imposition of sanctions

·  Significant concerns about the introduction of the benefit cap which would impact on the troubled families in the city who already had many other problems to contend with

·  What would happen if the grant allocations was spent before the end of the financial year.

·  The reasons why people’s applications for funding were being rejected and the guidance given if an application was unsuccessful

·  Concerns about only being able to make applications on-line

·  The impact of welfare reform on the Advice Agencies

·  Significant concerns about the numbers of children would who be affected by the benefit cap.         

RESOLVED that:

(1) The content of the briefing be noted.

(2) The recommendations in the ‘Suggested Actions Needed to Address Welfare Reform’ document be forwarded to Councillor Bigham, Cabinet Member for Community Development for her consideration.

(3) Members of the Committee to take up the invitation to meet with Claire Hindson, the new District Manager at DWP to discuss ways of working together.