To receive an update on Universal Credit. 

45.1           The Chairman welcomed the Revenues and Benefits Group Manager to the meeting and indicated that he would be giving an update on Universal Credit.

45.2           The Revenues and Benefits Group Manager explained that Universal Credit was part of the Government’s welfare reform programme which promoted the ethos that it ‘paid to work’ and encouraged people to get back into work whilst providing protection for the most vulnerable.  The Government was committed to saving £12.5 billion from its welfare bill and Universal Credit was intended to put public spending on a more sustainable footing.  It would merge six benefits into one: Housing Benefit, Jobseeker’s Allowance; Working Tax Credit; Child Tax Credit; Employment and Support Allowance; and Income Support.  These were all significant benefits in their own ways and there was a long timescale for implementation with the process only just starting in Tewkesbury Borough Council. 

45.3           Universal Credit would apply to anyone of working age and was initially for sole claimants, i.e. not couples or families, which represented a very small number of claims.  Since it had gone live in May 2015, Tewkesbury Borough Council had only received approximately 30 claims.  Universal Credit would be administered by the Department for Work and Pensions which would have service centres across the country.  The longer term plan was for a fully automated service whereby clients claimed online, although it was understood that there would be provision for those who could not access the internet.  There was no firm timetable for implementation and it was noted that Tewkesbury was currently in the second tranche.  Couples and families would be included in future; it was anticipated that they would be introduced sometime from June 2016 onwards.  It was thought that full roll out would not take place until 2020, although this was largely dependent on how quickly the Government could get the digital arrangements in place to support its administration. It was intended that housing benefits forms would stop being sent out by 2017 and those residents claiming housing benefit would be moved across to Universal Credit.  In terms of case load, there were approximately 4,200 claims with a 50/50 split between pensioners and people of working age.

45.4           With regard to the its role in the future, the Council would be very much engaged with personal budgeting and support and would need to work closely with the Citizens’ Advice Bureau to provide assistance to people who would be receiving a monthly payment and would have responsibility for paying their own rent directly to their landlord.  It would also be necessary to work with Job Centre Plus regarding the digital inclusion aspect in order to provide more help for those who wanted to submit claims and look for jobs online etc.  Council Tax reduction would remain within the Council’s remit and it would continue to administer housing benefit for pensioners, and residual housing benefit for people of working age, until such time as the Government took away that requirement.  Where people struggled to meet their rent responsibilities, the Council had an obligation to help them to meet the shortfall and could issue discretionary housing payments.

45.5           A Member sought clarification as to when the Council might decide not to issue a discretionary housing payment given that it would be the claimant’s responsibility to manage their own money.  The Revenues and Benefits Group Manager confirmed that the Council was obliged to look at the individual circumstances and to help where possible, however, where an account had been severely mismanaged, e.g. if the claimant had used the money to maintain a particular lifestyle, it was unlikely that assistance would be provided.  The budget for discretionary payments was limited so careful consideration would need to be given to how it was spent.  The payments were only intended to be for a short time to help people through difficult periods, enable them to resolve those issues and become self-sufficient.  A Member raised concern that there would always be some people who were not able to manage their own money and the Revenues and Benefits Group Manager advised that this had been recognised by the Department of Work and Pensions and there were provisions for people who did get into financial difficulty whereby the housing benefit element of Universal Credit could be taken away and paid directly to the landlord.

45.6           A Member questioned whether claimants would be allocated a particular person to offer help and advice and was informed that a ‘Job Coach’ would be provided via Job Centre Plus to offer assistance on how to get back into work, for example, writing CVs, training courses etc.  Local authorities would initially be responsible for helping with the personal budgeting and digital inclusion aspects but, as the process advanced, it was intended to take a more joined-up approach and look towards having a single point of contact. 

45.7           The Chairman thanked the Revenues and Benefits Group Manager for his informative presentation and it was

RESOLVED          That the update on Universal Credit be NOTED.