Agenda item - Readiness for Universal Credit implementation

Extract from the proceedings of the Neighbourhoods, Inclusion, Communities & Equalities Committee held on the 9^th October, 2017; together with a joint report of the Executive Directors for Finance & Resources and Neighbourhoods, Communities & Housing (copies attached).

40.1      The Mayor noted that there were three Notices of Motion on the same subject and stated that she was therefore inclined to take Items 42(d),(e) and (f), which related to the introduction of Universal Credit together with the report from the Neighbourhoods, Inclusion, Communities & Equalities Committee; in one debate.  The Mayor then invited Councillor Daniel to introduce the report.

40.2      Councillor Daniel introduced the report, which outlined the work undertaken across the council and with advice providers in the city to prepare for the introduction of Universal Credit. She noted that transitional measures were being put in place to help vulnerable people and urged all Members to read the report.

40.3      The Mayor then invited Councillor Janio to move the Notice of Motion as listed on the agenda at item 42(d).

40.4      Councillor Janio moved the Notice of Motion Item 42(d) on behalf of the Conservative Group and stated that there was a need to prepare for the introduction of Universal Credit.  He also suggested that the government should be requested to provide additional funding to local authorities in the forthcoming budget.

40.5      Councillor Bell formally seconded the motion.

40.6      Councillor Penn moved the Notice of Motion, Item 42(e) on behalf of the Labour & Co-operative Group and stated that the concept of Universal Credit had laudable aims but was not fit for purpose.  She felt that people would be driven into debt and rent arrears and action had to be taken to enable financial support and payments to be made sooner.

40.7      Councillor Daniel formally seconded the motion.

40.8      Councillor Sykes moved the Notice of Motion, Item 42(f) on behalf of the Green Group and stated that there was a need to look at alternative options such as establishing a universal income level as in Finland.  He believed that vulnerable people in supported accommodation would be more at risk and that would then have an impact on the local authority.

40.9      Councillor Gibson formally seconded the motion.

40.10   Councillor Page stated that it was an unkind benefit and there was a need to consider the impact for the most vulnerable people in the city.

40.11      Councillor Meadows stated that it was hard to find anyone who was not concerned about the roll-out of the scheme and people would be forced to make unpalatable decisions that would affect their lives.

40.12   Councillor Bell stated that the scheme was a major reform for the welfare structure and that work should pay so that benefits were reduced as people earnt.  The scheme provided greater flexibility and would be easier for claimants and there was an ability to make discretionary payments to help people in a difficult situation.

40.13   Councillor Gibson stated that he believed there would be an increase in homeless levels as a result of the introduction of Universal Credit and suggested that there was need for the reinstatement of the New Homes Bonus.  He acknowledged that the work of officers locally had been excellent but believed that people would still be forced into greater debt.

40.14   Councillor Daniel welcomed the comments and stated that she supported the Green motion but felt that the Conservative motion did not do enough to raise the issue.

40.15   Councillor Janio stated that it had been an interesting debate and there was a need to see if Universal Credit would be effective but accepted that more funding would help with the transition.  He was happy to support the Green motion but not the Labour motion.

40.16   Councillor Penn thanked the Green Group for their support and stated that the Labour Group would abstain on the vote on the Conservative motion.

40.17   Councillor Sykes stated that the Green Group were happy to support both the Conservative and Labour motions.

40.18   The Mayor stated that the report had been referred for information and moved that it be noted

40.19   RESOLVED: That the report be noted.

40.20   The Mayor then put the Conservative Group’s motion as listed in the agenda to the vote:

“This Council requests:

That the BHCC Chief Executive Officer writes to the Secretary of State for Work & Pensions to seek assurance that the residents of Brighton and Hove, who are transitioning from the complexity of six separate state benefits onto Universal Credit, will have the financial assistance necessary to make the switch as seamless as possible.”

40.21   The Mayor confirmed that the motion had been carried by 31 votes to 0, with 20 abstentions.

40.22   The Mayor then put the Labour Group’s motion as listed in the agenda to the vote:

“This council resolves to request the Chief Executive to write to the Secretary of State for Work and Pensions, requesting that the roll out of Universal Credit is paused until the issues associated with this key social security programme are fixed, including that:

·           The in-built 6 week delay for initial payments should be ended,

·           Claimants are allowed to choose between monthly and more regular payments

·           The cap should be lifted on the housing element of Universal Credit

·           Landlords should be paid direct by default

·           Payments should be made to individuals rather than one payment per family.

This council also resolves to request the Chief Executive to:

Inform the city’s three MPs of this motion and to call for their support in lobbying the Government to achieve our objectives on this issue.”

40.23   The Mayor confirmed that the motion had been carried by 31 votes to 20.

40.24   The Mayor then put the Green Group’s motion as listed to the vote:

“In view of the potential impact of the transition to Universal Credit and the number of individuals and families likely to fall into rent arrears and possible eviction, the Council resolves to:

1.    Request the Policy, Resources & Growth Committee to receive a report outlining how the Council can be as effective as possible on this matter, taking into consideration the following actions:

-       Where arrears are solely due to delay or wait-period for Universal Credit payments or removal of entitlement under Universal Credit, that officers use all means other than evictions and bailiffs to recover rent due; e.g. to delay any eviction proceedings in cases where Universal Credit Claims have not yet been processed;

-       That the Council work with partners to ensure all those affected by benefit changes are prioritised to prevent eviction and homelessness;

-       Explores the options for increasing the existing Discretionary Housing Payments budget, to support the distribution of greater one off payments in cases where eviction is a real risk following  Universal Credit payment delays;

2.    Ask the Chief Executive to write to the Secretary of State, requesting a reinstatement of the cut to New Homes Bonus Payments, so that a ring-fenced budget can be made available to cover the cost of increased homelessness resulting from Universal Credit.”

40.25   The Mayor confirmed that the motion had been carried unanimously.