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An LG Group perspective on welfare reform. Mike Heiser. 4 July 2011. Universal Credit – the story so far. Intended to be a monthly payment covering living and housing costs – one per household – digital by default Work has focussed on the online channel
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An LG Group perspective on welfare reform Mike Heiser 4 July 2011
Universal Credit – the story so far • Intended to be a monthly payment covering living and housing costs – one per household – digital by default • Work has focussed on the online channel • Less work so far on telephony and face to face • Delivery initially will be through established structures – likely to mean Job Centre Plus • Could be scope for more local involvement after 2017 – but this provides a challenge for councils’ planning • Proposal for pilots and local delivery – being progressed with DWP • DWP looking for pilots for payment to tenant in social sector • Council tax benefit to be ‘localised’ – current CLG consultation
LG Group position – Universal Credit • Welcome simplification and an easier customer experience • Need for urgent clarification on how the UC delivery model will work – online, telephony and face to face • Effect on different forms of tenancy – private rented, social housing – risk issues from payment to tenant rather than landlord • Make case for continuing role for councils in face to face to contact particularly with ‘complex cases’ • Ensure there is a proper Impact Assessment • Costs to councils of redundancy, system decommissioning • Concern at centralised fraud strategy – but DWP now considering a more local option
Welfare reform and localism • Face to face contact – councils have pioneered innovative ways of working • Central local information exchanges – In and Out of Work, Government Connect • Innovative ways of delivery - shared services - partnerships • Examples of joint working with DWP • Kent Gateway • Central Bedfordshire • Wychavon
Other changes affecting housing benefit • Changes introduced through orders • Caps, 30th percentile, shared room rate, extra room for carers, end of £15 excess • Changes in the Welfare Reform Bill • CPI, overall benefit cap, social housing sector limits – concern by foster carers
Effects on councils • Overall environment – cuts of 28% in real terms over four years; • Significantly front loaded – some districts have grant cuts of over 30% over two years • Redundancies affecting benefit departments • Uncertain future for both HB and CTB • Need to keep business going over changeover period • Different effects on different councils – districts face particularly significant challenges
LGA and advisers • Benefits Steering Group and subgroups • Transitional Working Group • Universal Credit structures • Liaison with CLG on council tax benefit reform