Agenda item

To consider a report by the Head of Revenues and Benefits (copy enclosed) detailing the current and likely future impact of Welfare Reform on Denbighshire.

[Councillor Barbara Smith declared a personal interest in this item as she worked for the Department of Work and Pensions.]

Councillor Barbara Smith, Lead Member for Modernising and Performance introduced the report which detailed the current and likely future impact of Welfare Reform on Denbighshire.  The report provided an update on information previously presented to the Member Area Groups regarding the ongoing impact of changes to Housing and Council Tax Benefits as part of the overall implementation of Universal Credit.  Whilst many details had yet to be finalised the Council had taken a proactive approach, setting up a cross service Welfare Reform Group to share information, support customers and identify the potential impact upon Denbighshire.

The Head of Finance and Assets (H:F&A) presented the report which covered the following main areas –

·        Universal Credit

·        Housing Benefit

·        Localisation of Council Tax Benefit, and

·        Other significant changes to benefits.

During his presentation the H:F&A detailed the impact of individual welfare reform changes on Denbighshire and highlighted the complexities involved within the benefits system and subsequent implications for both claimants and the authority.  He also highlighted the significant financial risks attached to the changes which were compounded by current uncertainties and the short timescale for implementation.  Assumptions had been built into the Council’s Medium Term Financial Plan arising from the loss in income for the authority.  Pressure points included increased demands and impact on Revenues and Benefit staffing resources; rent collection and the impact on Social Services.  A key change recently announced which had not been included in the report concerned an additional £10bn cut in welfare payments.

Members voiced their concerns regarding the impact of the changes on the county’s residents, highlighting the need to protect those most vulnerable where possible.  Concerns were also expressed regarding the negative impact on the authority’s income and resources as a result of welfare reform; the uncertainties surrounding the changes to the benefits system and tight timescales for implementing those changes.  Whilst commending the proactive approach taken by the authority in terms of establishing the Welfare Reform Group and sharing information, members felt that more should be done to raise awareness of the changes and impact on individuals suggesting the use of the mobile information bus, resources centres and County Voice.  They were also keen for welfare advice agencies to be adequately funded and resourced in view of the vital service they provided.  Specific questions regarding welfare changes were raised and members discussed their concerns with the officers who responded that –

·        welfare advice agencies worked closely together but data protection laws prohibited the sharing of information with other bodies

·        a targeted approach was being taken to sharing information once definitive advice was received and letters had been sent to individuals affected by specific changes; a full page had been reserved in the January edition of County Voice to advise on changes to Council Tax

·        agreed to the suggestion that councillors be more involved in the process with a view to sharing information within their towns and communities

·        whilst welfare agencies had been instrumental in helping people secure their benefit entitlements it was suggested that more emphasis needed to be placed on providing advice on budgeting and managing money

·        reported upon the results of some of the pilot schemes being undertaken prior to full implementation of the changes and acknowledged the short timescale in addressing problems identified

·        officers were unaware of any planned funding reductions to advice agencies

·        highlighted the potential negative publicity arising from the likely increase in the number of prosecutions by the authority for non payment

·        the Welfare Reform Group had recognised the issues surrounding the type and availability of housing arising from the introduction of the size criteria rules, i.e. the ‘bedroom tax’ and a housing strategy was being devised in that regard

·        advised that as a landlord the council had no duty in law to re-house tenants affected by the ‘bedroom tax’ or to pay their tax but the council did have a duty to collect tax

·        advised that pensioners were exempt from the ‘bedroom tax’

·        private landlords would not be affected by the introduction of the ‘bedroom tax’ because payments were already based on size criteria

·        agreed there may be problems arising from the direct payment of housing benefit to tenants as opposed to landlords which should be identified during the pilot scheme

·        the Welsh Local Government Association had carried out much research in responding to the Welsh Government’s consultation on the Council Tax scheme in order to influence its design and implementation

·        confirmed that the funding scheme to help pensioners with Council Tax would likely continue in a modified form in future years

·        indicated there was virtually no discretion afforded to councils administering the Council Tax scheme in Wales in order to protect particular groups or individuals and the timescale for implementation was extremely short

·        members would be updated on the funding allocation for the Council Tax scheme at December’s Budget Workshop

·        information was shared with landlords via the Landlords Forum and landlords were kept up to date with developments.

Councillor Barbara Smith took the opportunity to thank the H:F&A and Head of Revenues and Benefits for their informative and detailed report.

RESOLVED that the report be received and noted.