Agenda item

There is no report attached. This will be a verbal update.

Ian Savigar – Divisional Director for Revenues and Benefits – updated the Panel on developments since the presentation they received in their September 2011 meeting and the workshop in March 2012. He explained the following points:

Welfare Reform Change - Update

·  The timeline was still as it was previously. Any new claim after October 2013 is planned by the Department for Work and Pensions (DWP) to be a Universal Credit;

·  The DWP would start communicating with people about starting up their own bank accounts to enable direct payments;

·  In the lead up to Universal Credit, a lot of changes were being made to Housing Benefits such as how the rent is calculated and size criteria;

·  Roughly 50 families in this area would be affected by ‘Capping’ (no household should get more than £26k in benefits annually);

·  Landlords would in future no longer receive payments direct from the authority, claimants would be paid direct and some pilots are underway elsewhere to test this;

·  One of the concerns was the expectation that all claims will have to be made digitally, the officer had been in discussion with the DWP on this and the need for some face to face delivery. Some people would also need help in managing the money now that they would be paid monthly;

·  This authority had submitted an application to participate in a pilot for a face to face solution;

·  Finally that the Social Fund was being abolished (community care grants/maternity grant/cold weather grants) and that he wanted a policy that would pick people up who will lose out through this.

Panel members raised the following points and asked the following questions:

Councillor Macrae stated that this authority should be making a stand as changes will affect our residents and our staff. He wished to see changes that are people focused, not process focused.

Councillor Gerrish stated that Councillors on this Panel had raised the above points before. He stated that there was a danger that isolated people get overlooked and the authority should use the knowledge from smaller advice groups who should be brought up to speed as we progress otherwise the advice sector would not be able to provide support. The Divisional Director explained that he had a meeting with inter-agency groups the following day.

The Cabinet Member, Councillor Bellotti explained that this process is about coming out the other end with a fairer system and that, at present, a small section of families in Bath are drawing enormous amounts in benefits and others are working hard and not drawing such amounts. Councillor Bull disagreed and asked what would happen when they sought accommodation elsewhere and it was not available. Councillor Bellotti agreed that they would need help. He explained that it was about sending a message to people that it is worth going to work.

Councillor Macrae asked why the change to Universal Credit is being done at DWP level and not locally. The Cabinet Member explained that there has to be a national credit system.

Council Tax Benefit

·  The Divisional Director explained that the DWP were trying to listen to this authority’s concern on the changes being implemented. He explained that the Welfare Reform Act abolishes Council Tax Benefit and that there would be a new Local Council Tax Support Scheme from April 2013. The authority will get less money in the new scheme. He explained that pensioner’s council tax support would be protected so the 12-13% reduction would affect working age claimants.

·  He explained three options for the authority to fund the shortfall:

1.  Reduce the maximum eligibility to 72% of current amount;

2.  Fully fund the shortfall;

3.  (preferred by Cabinet) Reduce the amount of benefit by 22% and make a number of other simplifications.

Panel members raised the following points and asked the following questions:

Councillor Gerrish asked about parish precepts and how the changes will impact them. The Divisional Director explained that for technical reasons Parishes may need a significant Council Tax increase to offset the adverse impact on their tax base caused by the creation of Council Tax Support . He stated that he would clarify this information to all members and parishes once he had heard more from the government department.

The Divisional Director explained that he should find out on 20^th July if the application to participate in the pilot for a face to face solution is shortlisted – members of the panel will be contacted following this.