Minutes:
Background:
We welcomed Sue Harris, Local Partnership Manager for Newport and Monmouthshire, Department of Work and Pensions (DWP) to the meeting to provide an overview of Welfare Reform Changes.
· An update on Universal Credit was provided and it was noted that the scheme was launched in April 2013, is available in Job Centres and is claimed by 280,000 people. It was explained that there is not full roll-out in this area and consequently claimants are single non-homeowners in Monmouthshire. In addition, Members were informed that various other welfare reforms have taken place and the aim is to develop a more personalised service for everyone. For information, it was explained that, under the existing benefit scheme, for every 100 people claiming Job Seekers’ Allowance, there are 113 claimants moving into work representing an improvement.
· Members were informed that some other changes are due to come into operation such as the removal of the Universal Credit higher rate for the first child and lower rate for subsequent children. These rates will be replaced with a standard rate for all children from April 2017. It was explained that existing claims will continue as Universal Credit but new claims from families with two or more children will be directed back to Tax Credits until November 2018 and then return to Universal Credit. This measure is to ensure the Universal Credit system is working properly.
· Managed moves of existing claims for Universal Credit will be delayed to start in July 2019 and will be completed in March 2022. The expected full roll-out in this area later this year has now been delayed. It is expected that a full Universal Credit service will be available in five Job Centres a month from June 2017.
· Information on benefit capping, representing one of big issues in welfare reforms, was provided. It was explained that benefits are currently capped at £26,000 a year for single parents and coupled households, and £18,200 for single people. From November 2016, benefits will be capped at £20,000 for couples and £13,500 for single people living in their own accommodation. It was noted that 88,000 households are expected to be affected nationally in the first year. Locally, it is expected that 90 Monmouthshire households will be affected and 160 households in Torfaen. It was clarified that there are some exemptions to the benefit cap such as for people claiming working tax credits, personal independence payments, attendance allowance etc.
· A scan has been undertaken and the DWP is working with Councils to discuss what support can be offered to those affected. It was explained that the households affected have been contacted. Local authorities are visiting these households but it was noted that some are refusing help.
We welcomed Richard Davies, Head of the Shared Benefit Service for Monmouthshire and Torfaen who reminded Members every affected household will be visited and that often the household claiming the highest levels of benefits had complex circumstances, for example, single parent families with more than three children that will require significant support to change the household finances.
· A second scan has been completed and sent to local authorities and work is in progress to remove exemptions. Letters have been sent with the opportunity to arrange a voluntary appointment to discuss the changes. Additionally, JSA claimants will have the opportunity to discuss the benefit cap when they attend the Job Centre. Those who don’t have to attend for mandatory appointments will be offered the opportunity to make a voluntary appointment. If they don’t make a voluntary appointment, three attempts will be made to contact them to make arrangements to discuss how they can be supported.
· A second letter sent out contains an estimate of the financial effect of benefit capping and noted that the average reduction is £70 per week which will be deducted from the housing element of the Universal Credit so the responsibility will fall to the local authority to advise them of the reduction.
DWP staff are working internally and with local authorities to offer support to those affected. Those people who attend for voluntary appointments are offered child care support, the universal support scheme to support digital and financial independence, free budgeting advice and advice about discretionary housing payments. It was explained that joint DWP and local authority interviews have been arranged in some areas. Examples of good practice and the commitment to help those people most affected were shared.
Members’ Scrutiny
· A Member queried the percentage of 41% going to work if not capped. It was clarified that when the households were looked at, an evaluation of the initial benefit cap in 2013 showed that capped households were 40% more likely to enter the work place than uncapped households. It was added that the realisation of the loss of the money encouraged use of the extra support offered.
· A Member requested contact details, to be forwarded to all Members, to be able to advise constituents who to contact with Benefit queries. [ACTION: notes of the presentation and contact details to be forwarded to all Members].
· It was confirmed that every household would be visited and highlighted that a particular risk group is private rental tenants who either can’t or don’t access the available support services. The Benefits and Housing Teams work closely to address this category.
· In response to a query, it was confirmed that there are circumstances when residents of Monmouth can receive travel costs to access the DWP appointments and services in Abergavenny. Assurance was given that all claimants will be offered the same support. It was queried if DWP could work with the Passenger Transport Unit to provide a bus service.
· It was confirmed that there had been low response from the first letter and that three attempts would be made to make contact by Job Centre Plus, Monmouthshire PACE and Communities for Work staff. A Member expressed concern that if private tenancy arrangements fail the responsibility returns to the Council. It was acknowledged that there is a tendency to ignore communications until directly affected hence the arrangements for home visits. Members were advised that it is estimated that a homeless family costs approximately £8,000 a year to house and a Looked-After Child £125,000. Therefore, the financial consequences to the Council of a family becoming homeless, as a result of the changes, are significant.