To receive an update on from Mr. Ian Harrison, Corporate Director, on the latest position of Welfare Reform, nationally and locally.
Minutes:
The Panel welcomed Mr. Ian
Harrison, Corporate Director, who had been invited to
the meeting to give an update on the latest position of Welfare Reform both
nationally and locally.
Mr.
Harrison referred to the current political landscape, post General Election and
the continuation of the Welfare Reform programme, including an acceleration and
extension of some elements. In the
Queen’s Speech, the Government had pledged to remove a further £12 billion from
the Welfare Bill whilst mainly protecting pensioner welfare. It was known that
Welfare Reform would play its part in the creation of a “budget surplus” by
2019/20. The specific measures
which had been announced were:
·
four year freeze on most working age benefits
·
reduction in the benefit cap from £26,000 to
£20,000 (£23,000 in London)
·
18-21 year olds not automatically entitled to
help with housing costs
·
most welfare support restricted to two children
·
programme of broad based reduction in tax credit
awards
·
introduction of a National Living Wage for 25+
age (£7.20 rising to £9.00 per hour by 2020)
·
£800 million additional
Discretionary Housing Payment funding for five years for local authorities.
The July
2015 budget had only set out around £17 billion of the £37 billion required to
achieve the surplus in 2019/20. The
remaining £20 billion would be announced in the autumn
Spending Review.
Mr.
Harrison referred to an Ipsos MORI poll that had been
carried out in September, 2015 to gather information
on people’s views on austerity measures.
In addition, Mr. Harrison briefed Members on research by the Resolution
Foundation on spending within the welfare budget, where it was stated that, by
2020, working-age adult welfare was set to fall to its lowest level since 1979;
spending on children would be back to its 2002 level; while pensioner spend
would fall to its immediate pre-crisis level. It was also advised that
pensioner spend reduction was being driven by increasing the State Pension to
66 by 2020. In respect of the focus of
welfare spending, it was noted that pensioner benefits
accounted for 45% of total welfare spending immediately pre-crisis, but were
set to account for 52% by the end of the decade. In contrast, tax credit and child benefit
spending would fall from 21% to 17% of the total. It was further noted
that, by 2020/21, the share of Government spending flowing to older people and
health could reach 43%, which was its highest level since comparable records
had begun in the 1990s. In contrast, it was forecast that the share allocated to education and
economic affairs would reach a new low of 19%.
In respect
of the situation in Rushmoor, Mr. Harrison advised Members that, overall since
March 2013, there had been a 6.3% decrease in the Housing Benefit and Council
Tax Benefit caseload. The eligible
population levels had increased over the years from 2009 to
2014 from 71,300 to 76,374 with the Benefits caseload as a percentage of the
population increasing from 8.5% in 2009 to 10% in 2014. It was also noted
that, between the period of November 2008 and May 2015, Rushmoor had seen the
largest increase (46%) in Housing Benefit claimants across the whole of Great
Britain. In respect of Job Seekers’
Allowance, Rushmoor had seen a decrease in the past year of 160 (21%) claimants
and of 625 (51%) in the past two years.
It was noted that the August 2015 figure was
0.8% lower than the national figure and 0.1% lower than the South East
figure. It was
further noted that the number of Employment and Support Allowance
claimants had increased in Rushmoor since the Allowance had been created in
November 2008, although this figure was relatively low.
Mr.
Harrison displayed maps of the Borough which showed
the indices of multiple deprivation in 2010 and 2015 which demonstrated a
general shift in areas towards being more deprived, although contrasted with
some pockets of improvement, indicating the changing picture of the
Borough.
The Panel was then briefed on the national caseload for Universal
Credit. The age range of claimants was shown, together with the caseload figures for the
nearest authorities who currently processed Universal Credit. It was noted that
Rushmoor would be in the tranche of authorities to start dealing with Universal
Credit from December 2015 to April 2016, with Rushmoor expecting to see its
first claimants in February 2016.
The Panel
noted that, in April 2015, there had been 500 people in the Borough who would be affected by the benefit changes relating to
additional bedroom restrictions. However, by October 2015 this number had
reduced by 154 as these residents were no longer
affected due to a change in their circumstances. Members were advised
that there were currently 24 Benefit capped cases in Rushmoor. Continued engagement was taking place with
residents affected to support them through joint working by Housing Services at
Rushmoor and other organisations.
In respect
of Discretionary Housing Payments, the Panel was advised
that the total fund for 2015/16 was £125,516.
It was noted that 72% of Discretionary Housing
Payments had been awarded to support people affected by the social sector size
criteria (additional bedroom restriction).
In respect
of Council Tax collection rates, it was noted that, for 2014/15, the collection
rate had been 98.2% which compared extremely well to
other areas in the UK.
The Panel was reminded about the provisions of the Council Tax Benefit
Scheme and the local Council Tax Support Scheme. Members were advised that Council Tax support
spending had continued to drop and that caseload work had
also reduced by 16.1% over the period from March 2013 to June 2015. Details were given
of award data for the Council Tax scheme, how the Scheme operated across
Hampshire and how this compared to Rushmoor’s immediate neighbours and to
Rushmoor’s audit family.
Rushmoor’s Council Tax Support Scheme had performed well but was
currently under review and subject to consultation on various options for
change. Responses would be
considered by the Welfare Reform Task and Finish Group for submission to the
Cabinet for consideration to then be recommended for approval by the full
Council on 27th January, 2016.
In
conclusion, Mr. Harrison advised that the Government’s intent and mandate was
to continue to deliver welfare reform through a complex and wide-ranging programme. Locally, the Council had some different and
difficult issues with welfare and income generally. Housing demand versus supply and costs
supporting rent in the private sector remained a challenge. Mr Harrison
reported the Task and Finish Group’s view was that changes needed to be made, but it was important that the genuinely vulnerable
should continue to be protected.
During
discussion, Members raised questions regarding the Council Tax Benefit Scheme,
the Council Tax collection rate, indices of multiple deprivation
and the changing local demography.
Members expressed great satisfaction that Rushmoor was the best local
authority in England for processing benefit claims and extended their
appreciation and congratulations to the department responsible for this
achievement.
The Chairman thanked Mr. Harrison for his comprehensive and informative presentation. The Panel NOTED the update.