Agenda item - Welfare Reform Changes

Report of Acting Executive Director for Environment, Development & Housing (copy attached).

(1)      That the contents of the report and comments made by the Committee be noted.

56.1    The Committee considered a report of the Acting Executive Director, Environment, Development & Housing which summarised the upcoming national changes to welfare benefits and other government austerity measures that directly affected Housing.  It had a particular focus on Universal Credit, which was introduced to the Brighton & Hove area from December 2015.  The changes laid out in the report would not affect pensioners.   The report was presented by the Head of Income, Involvement & Improvement.

56.2    Councillor Deane commented that one area that worried tenants was that rent would be paid to them rather than landlords.  This could lead to them having to make difficult choices and getting into arrears and possibly losing their tenancy.  It could also lead to landlords in the private sector only renting to tenants who were in work rather than on benefits. 

56.3    Councillor Atkinson was concerned that people were being encouraged to buy their own properties at a time when interest rates were going up.  A whole section of social housing would be lost.

56.4    Councillor Mears noted that a great deal of work had been carried out on this issue since 2013 and the Brighton & Hove Food Partnership had been ongoing for 8 years.  She would however, like to see more joined up working with the NHS, GPs and schools.  She considered that welfare reform was having a positive impact. Brighton & Hove unemployment levels were the lowest for many years and there was positive growth in the city. There were many projects that would create more jobs.  Councillor Mears stressed the need to think of ways of helping people and the importance of partnership working.

56.5    Councillor Gibson felt that welfare reforms were about passing the cost of the financial crisis onto people who could least afford it.  He was worried that the pilot of Universal Credit showed that people were getting into arrears.  Councillor Gibson referred to paragraph 4.2 and stressed that it was crucial that direct debit payments were increased.  Meanwhile there was a need to think about how the council could supply lower cost affordable housing. 

56.6    Councillor Penn stressed that in 2010 there had been only 2 foodbanks in the city. There was now 12 foodbanks.  Councillor Penn stated that she knew of a number of tenants with poor mental health who were worried about Universal Credit.  Councillor Penn was concerned about the increased level of arrears.  She felt that people who were not coping should be exempted from Universal Credit. 

56.7    The Head of Income, Involvement & Improvement informed members that alternative payment arrangements were available for a limited period to ensure that people were supported.  Support was being put in place.  There might be some individual circumstances where alternative payment arrangements could be kept in force for a longer period.  For example where there had been evidence of domestic violence or abuse.  Meanwhile officers wanted people to have a bank account and have direct debit payments and were giving people support in this respect.

56.8    Councillor Miller welcomed the changes. He stated that 85% of people wanted to buy their own homes.

56.9    The Chair stressed that two parents working would not be better off under universal credit.  She felt that there was not an incentive to get a better job.  She was concerned at the reduction in benefit levels and freezing working age benefits for four years.  Under 21s would get no payments which was discriminatory.  Officers would need to do a lot more work to help council tenants and those in private housing.  The Chair referred to paragraph 3.4.4 and stated that she was concerned about the cumulative effect of Universal Credit on residents in the city.  

56.10  RESOLVED:-

(1)      That the contents of the report and comments made by the Committee be noted.