Wednesday 8 October 2014

1. Where are we now?What do the changes in Welfare Reform, Housing and Planning mean for local government? Wednesday 8 October 2014

2. Conference Chair Cllr Roger Begy, Rutland County Council

3. Welfare reform – where are we now? Rose Doran, Senior Adviser, Local Government Association East Midlands 08/10/2014 www.local.gov.uk

4. The reforms Started in earnest in April 2013 Aim to: simplify mainstream housing and employment benefits Majority of interactions online improve work incentives encourage personal responsibility target support at those who need it most significantly reduce the overall benefits bill Income of households claiming benefit estimated to be on average lower by £1,615 a year – or £31 a week – in 2015/16 as a result of welfare reforms

5. The welfare reforms at a glance Changes to Housing Benefit (HB) for renters in the private sector – Local Housing Allowance (LHA) The removal of the “spare room subsidy” for most HB recipients in social housing The introduction of a cap on total benefit receipt Changes to tax credits Tightening of eligibility and the restriction of contributory Employment and Support Allowance (ESA) to one year The replacement of Disability Living Allowance (DLA) with Personal Independence Payment (PIP) The uprating of benefits and tax credits by 1% instead of the CPI The replacement of Council Tax Benefit with locally-determined Council Tax Support schemes The replacement of the Social Fund with Local Welfare Support The introduction of Universal Credit

6. Breakdown of projected savings in 2015/16, Great Britain (£ million) www.local.gov.uk

7. Councils at the heart of successful delivery: Housing and planning Employment and skills Support for those facing the most significant barriers Inclusive growth

8. Impact - housing LHA, benefit cap and ‘bedroom tax’ – significant impacts for some households Little evidence of inclination to move Shortage of properties to move to Impacts cushioned by discretionary (and transitional) funding Benefit cap – initial drop, now quite static caseload Some evidence LHA rate is bringing down rents but not in more expensive places UC – impact of Direct Payments

9. Mitigation - housing Low rent = low employment We need freedom to build more affordable homes – pressure at the lowest end Statutory responsibilities for housing and homelessness HB admin Relationship with RSLs and private landlords Financial capability and integrated support

10. Employment Employment is the key way for people to manage impact Local Support Services – integrating welfare, employment and skills Skills deficit – need for greater local discretion and influence Work programme has some key weaknesses – re-let 2016 Integrated support - benefits of a caseworker approach Linked to broader economy and inclusive growth – councils best placed to do this

11. Discretionary local support Local Support Services Discretionary Housing Payment Local Welfare Schemes – review and consultation

12. Impacts Tracker http://lginform.local.gov.uk/ View and compare impacts by local authority Report narrative to provide some context and discussion of mitigation

13. Universal Credit UC replaces the following benefits/tax credits: Working Tax Credit, Child Tax Credit, Housing Benefit, Income Support, Income-based Jobseeker’s Allowance Income-related Employment and Support Allowance. Working age Monthly payment to household Online claims and interface

14. Universal Credit roll out Live Service – began with new claims for single jobseekers in Tameside (Ashton-under-Lyne) in April 2013 Slow and incremental – small group of councils; staged by claimant type All of North West from June 2014 Couples in existing Live Service areas from Summer 2014 Roll out to remaining councils will commence between February 2015 and February 2016 Expansion will apply to new claims for single job seekers. New applications for ‘legacy benefits’, such as housing benefit, will be closed from 2016 Final IT solution is being developed and will be in place by 2018 Local Support Services - trialling and testing (e.g. Melton and Rushcliffe)

15. Single Fraud Investigation Service Phase 1 go live 1 July (9 councils, 35 staff) Phase 2 schedule published Roll out started 1 October On 1 Oct 23 more councils went live, 48 more staff Funding: £12m top slice from HB Admin Grant 2014/15 from councils live by 31 March 2015 (figures promised this month) SLA for Information Provision – each council will need to sign up; will be reviewed after December Principles agreed for new burdens funding 2015/16 TUPE like

16. Practicalities We keep some HB – e.g. pensioners TUPE for council staff? SFIS Direct payments – Landlord (tenant) preparation Live service Completed IT solution – being piloted We will press to remain at the heart of delivery and support for local people Steady state – 2018

17. Further information… www.local.gov.uk www.cesi.org.uk rose.doran@local.gov.uk

18. The impact of Welfare Reform in Leicester Karen Wenlock Revenues & Benefits Manager October 2014

19. Content Council Tax reduction Under – occupancy Benefit Income Cap Discretionary Funding Summary of Impacts Any Questions

20. Council Tax Reduction – summary of changes 2013/14 An Equality Impact Assessment ensured that those households likely to be affected by the proposed changes were identified Capping support to a band B property: Council tax reduction calculated at the band B rate, even if claimant lives in a higher band property This affected 2,091 households in band C – G A maximum award limit at 80%: All working age people (25,000) had to pay at least 20% towards their council tax bill Of these 16,000 households had not paid any Council Tax before. eg £3.79 per week for a couple in a band A property (£197.85 pa) £4.43 per week for a couple in a band B property (£230.83 pa) Reducing the upper savings limit from £16,000 to £6,000 281 households were affected by this change It meant that people (and/or their partners) with more than £6,000 of savings could not claim council tax reduction Removing second adult rebate 593 households would not receive the 25% financial support.(This is NOT single person discount) Setting a minimum award level @ £3.60 week - 703 households were potentially affected by this change 20

21. What did we do to help? We launched a targeted ‘talk to us’‘ publicity campaign Additional ‘prompt to pay’ letters were sent to a target client group These households who had not previously paid council tax were identified and the recovery procedure amended to send additional reminders Payment arrangements for this group were closely monitored 12 monthly direct debit instalments were offered to all households The council sort to reduce the burden of debt for all households in the city, where lower level debt is not paid, through negotiating lower court costs Expected a number of charge payers issued with liability orders to allow recovery of debt through attachment to welfare benefits and earnings

22. Did it work? Council tax collection was higher than expected and exceeded our target last year Quarter 1 recovery information for this year confirms collection has remained strong and slightly exceeds last years figures at the same point. Take up of the Council Tax Reduction and Discretionary Relief schemes has been less than expected. We are currently undertaking a targeted take up campaign for both.

23. Under-occupancy - Impact Analysis In the 2011 Census in Leicester 129,603households in the council tax property base. Of these 31,270 residents declared they lived in a social housing property. From April 2013 a total of 3,844 households were affected By 31stMarch 2014 this had reduced to 2,976 By 30th June 2014 this had reduced to 2,874 Average loss per week, per household £10.91 for one spare room or £19.96 for two or more 13/14 £12.16 as above or £22.31 as above Q1. 14/15 Main three wards affected: Council Housing: New Parks, Braunstone park/Rowley fields and Eyre's Monsell. Housing Association: Spinney Hill, Coleman, Stoneygate. 23

24. Under-occupancy 24

25. What was done to help? Where known, all households were contacted by their landlords, prior to the rule applying to them, offering advice and support. Leaflets were made available offering advice on taking on a lodger All households were offered housing advice and support should they wish to move to smaller, less expensive, alternative accommodation. Promotion of the HomeChoice, EasyMove, HomeSwapper schemes to help households find new homes. (Supported by Discretionary Housing Payments to minimise rent arrears while waiting to find a suitable place). RSL provided support through their financial inclusion officers to provide advice, facilitate exchanges within their own stock or register with Home Choice etc, The housing allocations policy was reviewed and updated to reflect the welfare changes. 25

26. Following the changes High take up for discretionary applications - Support of this nature is on-going were it is evidenced the householder is helping themselves to manage the financial commitment eg Registered for alternative accommodation and actively bidding By March 2014 868 households no longer have the rule applied (Q1.= 970). Reasons for the reduction are varied - combination of finding work, changes to household, moving to alternative accommodation LCC Tenants affected has reduced. The anticipated rent arrears increase has has not been as high as anticipated, mainly due to all the advice/support provided to the affected tenants, including support to apply for DHP Initiatives to help those struggling to pay:- Invitations to come and talk about how to pay regular, affordable amounts Clockwise Rent Account promoted Tackling tenancy fraud - to bring properties back into the market

27. What size is a bedroom? Section 365 in the Housing Act, 1985, is used to calculate the maximum number of people who can live in a property, without causing ‘statutory’ overcrowding. The Government’s Housing Benefit guidance does not take any account at all of the size of a bedroom. A room is either a bedroom or it is not. Any room with adequate ventilation and a minimum of 50 sq feet (4.65 sq metres) of floor space can be considered as ‘available for use as sleeping accommodation

28. Re-classification of a bedroom LCC - Re-classification of bed rooms occur when: Where significant adaptations to the property have occurred. Such as a through floor lift has been installed. Where the accommodation has seen a change to the floor plan. If the bedroom size is less than 50 square feet (reference Housing Act 1985) the room will no longer be deemed to be a bedroom. This has been undertaken on a case by cases basis and not as a wholesale reclassification exercise.

29. Current Situation - Appeals A large number of appeals have been made to First Tier Tribunal on issues around the under occupancy changes:- Breaches of Human Rights – eg. Disability Discrimination These appeals have not been successful at Upper Tribunal the main reason given is that the DHP scheme is seen as a “Fair and proportionate response to the discrimination” NB) As a result the intention of DHP has been changed. Previously awards were purely discretionary, guidance now indicates that, in certain situations, DHP payments must be used to provide support. (e.g. Disabled child with a carer)

30. Current Situation Room Size A number of appeals have been heard on this issue but as yet there have been no clear and binding decisions. Room use A number of appeals have been made to challenge whether a room should be counted as a bedroom. Historic use of the room seems key but no set rule can be applied, decisions made so far have been varied. At present the Upper Tribunal has stayed all appeals on these issues pending the hearing of test cases.

31. Benefit Income Capping 72% were female claimants. Of these 59% are lone parents. 47% white, 36% Black, minority, ethnic, 17% unknown Q1 2014/15 192 affected , loss between £ 2.09 – £122.52 Ave loss. RSL = £50.11 Council = £ 62.09 Private = £65.81 How many households were affected?: Initial DWP scans in July 2013 showed 725households could face the Benefit Income Cap.. From August 2013 to March 2014 at any one time between 170 and 220 households were affected by the rule. 31

32. What did the council do to help? Following the national trend only half the households expected to be affected by the rule have actually had the rule applied and their Housing benefit reduced. Collaborative working with job centre plus supports households back into the jobs market/ Improving skills through training All households were contacted to offer housing advice and support should they wish to cheaper alternative accommodation. All households with children have been contacted to ensure support and advice is offered to ensure households have enough food to feed the children. Housing options are monitoring the housing market and reports of notice of seeking processions/evictions to establish if this rule is resulting in families losing their home. Contacted every household offering Discretionary Housing payments and housing advice should they wish to move. Offered budgeting advice if they wish to remain in the property and manage their budgets in order they can afford to do so. If they are seeking to help themselves a Discretionary Housing payments are used to support them while they manage the transition to another property. 32

33. Summary of Impacts The combination of the welfare reforms has had a significant effect The council, social landlords and advice agencies in the city have worked together to identify those affected and in need of support. We have found that:- For most of the welfare reform changes over half of the households affected have children There has been a disproportionate affect on lone parent households The impacts are being felt in areas already identified as financially deprived

34. Discretionary Housing Payment (DHP)fund allocation The number of DHP applications received for 2013/14 was 3442 against 426 for the entirety of 12/13. The 2013/14 DHP fund was spent in full DHP awards (One snapshot period) 801 under occupancy 96 BIC 441 multiple reasons Council tax Discretionary relief fund spend to March 2014 was £262,236 2014/15 – 1207 applications have been received to date. 34

35. Local Welfare Provision - Community Support Grant Funding for Leicester is £1,606,825m (2013/14 &2014/15) Council adopted our scheme from April 2013. The key headlines being to: alleviate poverty; support vulnerable young people in the transition to adult life; safeguard residents in their own home help those who are trying to help themselves; keep families together; support the vulnerable in the local community; help people through personal and difficult events. The policy intention supports other council strategies and recommendations: Leicester City’s Child Poverty Commission recommendations Leicester City’s food plan 13/16 Children’s society recommendations NB)Funding for 2015/16 remains in doubt – however following a judicial review on 30/09/14 the government notified authorities that it had agreed to reconsider how the local welfare provision should be funded and would notify the outcome as soon as possible.

36. Community Support Grant Take up LCC received 2613 requests for a CSG payment 1463 approved, 1055 declined ( a number of these were duplicate and incomplete) £367,211.53 in award payments made 700 referrals to other sources of support for those whom we are unable to support through the scheme- they usually receive a referral to the LCC partner food bank 1700 food bank referrals. Crisis Grants - 2013/14 Awarded 873 crisis grants (non-cash based awards and funds which are not recovered from the client) of £57,078.38 The average award was £64.94. They received co-op vouchers which exclude the purchase of alcohol and cigarettes, for food, fuel to ups direct onto fuel cards, clothing and most would also receive a 3 day food parcel. Support Grants - 2013/14 Awarded 590 community support grants (non-cash based awards and funds which are not recovered from the client) of £310,211 An average award is £515.17. Including white goods, beds, bedding, carpeting of homes mainly social housing stock, curtains, sofas, tables etc. 36

37. Community Support Grant – “Pass it on” The LWA funding has been used to pilot a LCC recycling scheme to ensure a sustainable resource for furniture and household goods for those in need in future years. This recycling scheme runs alongside the main provision which provides new items Our initial findings are encouraging:- This pilot has shown the council is able to minimise purchasing new goods for the first seven months of the pilot the savings were £58,334. Donated items include bed frames, sofas, chairs, dining room tables, bedside tables, computer desks, wardrobes, dressing tables etc. 174 households in the city received 746 furniture items. All were assessed as safe, clean and re-useable. All electrical items received were PAT tested. £1,398, 19 tons of waste was redirected from landfill. This venture is currently operating at a very low level in order to test the viability, however expansion of the pilot has been agreed and work is in progress 37

38. Sanctions A major issue in the city has been the increased activity at the DWP regarding the use of sanctions with increasing number of applicants presenting both to us and other advice services who have no means of support. Initially these applications were not supported under the policy, as the DWP has retained the administration of a hardship fund and the crisis loan for alignment payments converted to a discretionary fund called short term benefit advances ( again advance loan) a in order to support the DWP sanctions policy. However the scheme and the local impacts have been continually reviewed and monitored by the council and advice agencies and recent upward trend in sanctioned claims has identified hardship and STBA payments are awarded in very small numbers leaving significant number of household’s struggling to cope. LCC policy has been amended in recognition of this need and in future some applicants who have no other means of support will receive assistance. The numbers of crisis grant applicants have increased by 43.10%, the number of awards has increased by 61.76%, the average award has increased to £70.30 in April 2014 and the monthly spend for crisis grants has increased by 48.9% since the policy change was introduced. 38

39. Emergency food outlets for the city . Research findings. We have identified there are broadly three main types of provision:- Emergency food (i.e. providing several days of non-perishable food to those in crisis). Hot meals(services aimed primarily at homeless or disadvantaged groups) Surplus food distribution(fresh, chilled and close-to-expiry food provided to eliminate food waste from wholesale/retail outlets) 39

40. Why has demand increased? 40

41. What does the future look like? 41

42. Risks and issues identified The information gathered during this exercise has helped to get a better understanding of the provision in Leicester. The main issues and risks are: Virtually all sites reported they are struggling to meet demand Not all the deprived inner-city areas have a food bank provision. Informal support in local communities appears to exist which might be providing assistance, but unreported Improvements were identified in relation to communication, referral arrangements between food banks to increase efficiency and further reduce food waste. Setting up of a clear structure of standards, in key areas, to ensure that all providers operate in the same way in an agree framework, for example satisfy key training, advice and Health and Safety requirements Funding of schemes- memberships, running costs and other associated costs is increasingly difficult, sustainability of the outlets is under threat. This is currently under review to establish what assistance/support can be given to ensure the continuation of the provision. Leicester has developed at Food Plan to address the need for a co ordinated approach to those in need of support in the city in a wide range of areas. 42

43. In summary Council Tax collection has been better than anticipated – but at a cost The number of households facing under-occupancy are decreasing The impacts from benefit cap are not as great as first envisaged Social housing transfers are up Applications for support through DHP have increased significantly Key areas of concern continue to be: The financial and health impact on disabled, their carers’ and other vulnerable groups (especially with other changes rolling out eg PIP) The financial and health impact upon children in the city Access to advice and support for the most in need in a sector seeing significant reductions in funding Access to affordable accommodation is not always available Growing need for emergency food aid in the city 43

44. Thank you for listening • Any questions? • My contact details are: Karen Wenlock Revenues & Benefits Manager Karenwenlock@leicester.gov.uk

45. Questions

46. Welfare Reform: Where are we now? Sarah Short East Midlands Councils

48. Where we were in February 2014 • Housing supply and stock • Support for people back into employment • Cost of administering welfare reforms • Local support for the most vulnerable • Welfare Assistance Schemes • Funding

49. Where are we now? • Recent government announcements • Data

50. Where next? • Does this picture resonate? • What are the key challenges for your authority? • What questions do you have for DWP? • What are the key asks for your authority?