Minutes:
Background:
Michele Morgan, Monmouthshire Housing Association (MHA), provided some context to explain the impact of Welfare Reform on Monmouthshire Housing tenants.
She explained that when the Bedroom Tax was introduced in 2013, approximately 400 tenants were affected now reduced to 284 because some have chosen to downsize, the ages of children entitle them to their own bedroom and some have found work. She added that arrears for the 284 tenants affected by the Bedroom Tax are at a level of £51,000. Of the 284, three-quarters require a one bedroom property if they are prepared to downsize. It was explained that there is a shortage of one bedroom properties in the County so it may not be an option to downsize for many.
Members were informed that of the 284, 133 tenants have received a Discretionary Housing Payment (DHP) to meet the shortfall in housing benefit (which is worth, on average, £9.66pw). It was added that the DHP does not pay the total amount of the Bedroom Tax and the tenant is required to contribute the balance from their benefits.
Members were informed that 64 DHPs expire this month and MHA is working with tenants to assist with new applications. 90 tenants will be affected by the lower benefit cap from November 2016. It was explained that currently only 5 are affected rising to 23 in November. These are mainly families with 3 or more children. Members were informed that the potential impact on the 23 households was a loss of over £2000 per week (£109,000 per year).
Members were reminded that this area has not yet been fully affected by Universal Credit and that there are 17 single Job Seekers Allowance claimants, all of whom are in arrears.
Some case studies to illustrate how DHPs have been used in the County were presented. Reaffirmation of the approach was sought recognising the intention to mitigate impact on the Council. It was noted that further changes will impact on the landlord creating new demand in addition to the support for families already provided and budget pressures leading to reduced payments.
The Chair expressed appreciation of the presentation of case studies.
Members’ Scrutiny
Following the presentation, Members were invited to comment.
· In response to a query about the first case study, it was confirmed that the 2 children became looked after and were unlikely to return. It was commented that this would incur a significant financial burden on the Council. It was queried what would happen if the children were only taken into temporary care and were returned and confirmed that there would still be an overpayment due to under-occupation whilst the children were looked after. MHA would work also with the tenant and Social Services.
· Referring to the rent arrears common in both case studies, it was queried how long it takes to identify a problem and confirmed that a missed rent payment would be noted immediately and arrears recovery processes would be implemented engaging with tenants to resolve the issue. It was noted that tenants don’t always engage and ultimately there is legal recourse to recover the debt. It was confirmed that efforts are made to re-educate people to take responsibility for their actions.
· It was confirmed that rent payments received from housing benefit and DHP payments are paid directly to MHA. 17 Claimants of Universal Credit and 120 claimants of housing benefit, on a trial basis, receive a direct payment. In response to a question, it was confirmed that there were mixed results with the trial and those with arrears in excess of 8 weeks were removed from the trial.
· The Chair stated that the work that MHA does is admirable, and queried why it undertakes the support role for tenants. It was explained that housing associations are social landlords that provide advice and support to sustain tenants and communities, developed due to cuts in public sector services. It was added that transport is a difficulty in Monmouthshire and so services are provided within a tenant’s own home.
It was queried what is the best way of helping people facing these difficulties and suggested that consideration is given to the potential for sharing best practice and to explore opportunities to create efficiencies and economies in the provision of welfare advisory services.