Agenda item

MOTION FROM THE LABOUR GROUP - UNIVERSAL CREDIT

Minutes:

The Council considered a motion from the Labour Group on Universal Credit, which was subsequently amended by the Conservative Group, as set out in the resolution below.

 

On a motion from Councillor Charles Gerrish, seconded by Councillor Tim Warren, it was

 

RESOLVED to note that;

 

1.  Bath and North East Somerset is a Full Service area for the roll out of Universal Credit and has been since May 2016, having been part of the pilot scheme since 2013.

 

2.  By 2020, it is expected that 7,500 people will be in receipt of Universal Credit in Bath and 7,000 in North East Somerset, and that approximately 4,000 households are currently in receipt of Universal Credit in B&NES.

 

3.  Universal Credit simplifies a complex welfare system, merging six benefits into one payment, and that experience in B&NES shows that, a result of Universal Credit, our Housing Benefit caseload for working age customers has reduced by around 35%.

 

4.  By introducing a ‘taper rate’ of 63% Universal Credit ensures that – unlike the previous welfare system - working more always pays more and recipients no longer have to keep making new claims as their wages increase.

 

5.  The Government is taking a phased approach to the introduction of Universal Credit, and that full roll-out won’t be completed until 2022, but that all Job Centres across the country already have some customers on Universal Credits.

 

6.  Universal Credit is paid monthly in arrears, ensuring the system mirrors the way that the majority of people get paid.

 

7.  Between April and September 2017, Citizens Advice advised 274 different people with new problems concerning Universal Credit from every ward in Bath and North East Somerset.

 

8.  People approaching Citizens Advice mainly had problems with the delays in receiving their first payment, inability to pay for essential items such as food and utilities before receiving their first payment, but that for those who cannot wait until their first full payment, interest-free advances are available within five working days, and that over 50% of new claimants have made use of these advance payments.

 

9.  Whilst improvements have been made by Government to Universal Credit, such as the improved taper rate and advance payments, experience in B&NES as well as the Citizens Advice report Delivering on Universal Credit shows issues and challenges do remain with the implementation of Universal Credit which need to be addressed as the system is rolled-out.

 

10.In addition to the support provided by the advance UC payments and Discretionary Housing Payments, as a result of budget decisions taken by this Council B&NES also administers its own Welfare Support Scheme which provides upfront and tailored support for those people who identify themselves as struggling to manage with the current welfare system, including help with the cost of household items, food, accommodation and debt repayments.

 

This Council believes that:

 

11.The aim of Universal Credit – to simplify the benefits system and to offer people the security and support they need to move into and progress in work - is right.

 

12.As the Government phases the roll-out of the new system it important that lessons are learnt from the experience of pilot areas such as B&NES, but that the experience in B&NES and feedback from officers indicates that halting the roll-out entirely would cause greater difficulties than it would resolve and mean the continued administration of multiple complex systems.

 

13.The Government’s decision to make the Universal Credit helpline free of charge is to be welcomed.

 

14.It is important that the new welfare benefits system is fair, works properly and does not disadvantage residents either now or in the future.

 

Council resolves therefore:

 

15.To make, through the Leader, urgent representations to Government to:

 

a.  Strongly urge that the Secretary of State ensures that issues raised by Bath & North East Somerset Council, as a pilot area, are given priority for resolution under full service, such as:

 

  i.  Enhanced support for claimants in the first six week period of a claim, recommending that the maximum wait for first payment be reduced to a maximum of 4 weeks, and as a minimum ensuring that advance payments are properly signposted and Alternative Payment Arrangements in place for the most vulnerable;

 

  ii.  That personal budgeting support should be actively encouraged or applied by the Council or other trusted partners such as CAB and major RSLs;

 

  iii.  That the Council should be afforded ‘trusted partner’ status to discuss vulnerable customer circumstances with the Service Centre;

 

  iv.  That Universal Credit recipients placed in Temporary Accommodation should be awarded Housing Benefit to cover the Housing element of their costs;

 

  v.  That an online application facility is provided for arranging Job Coach appointments;

 

  vi.  That DWP work with the Council to improve data transfers between the organisations.

 

b.  Ensure that changes made as a result of addressing the problems with Universal Credit are implemented first in existing Full Service areas such as B&NES;

 

c.  Ensure that, as the part of the roll-out, the full cost to the Council resulting from the introduction of Universal Credit is fully funded by Government.

 

[Notes;

1.  The original motion, as set out in the agenda papers and incorporating an additional paragraph put forward by the Liberal Democrat Group, was moved by Councillor Chris Dando, and seconded by Councillor Robin Moss, but then subsequently amended.

 

2.  The successful resolution above carried as an amendment with 33 Councillors voting in favour and 21 Councillors voting against.  As the substantive motion, it was then carried with 39 Councillors voting in favour and 13 Councillors voting against.]

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