Issue - meetings

Meeting: 16/01/2020 - Principal Select Committee (Item 17)

17 Scrutiny Review: Impact of Universal Credit pdf icon PDF 190 KB

Minutes:

The Scrutiny Research Officer introduced the report and reminded Committee that the review had commenced in June 2019 with an initial objective of gaining an understanding of the impact of the rollout of Universal Credit from both the Council and claimants’ perspective.

 

Members endeavoured to understand the requirements of the Welfare Reform Act 2012 including how the new Universal Credit regime would replace the existing system.   The fundamental changes were understood to enable the benefits system to be simplified with an overarching drive to reduce non-working households and cut welfare expenditure.

 

Members also considered how Universal Credit had affected Ashfield claimants following its phased introduction from June to November 2018.  The Council had been proactive in preparing for the changes and a Welfare Reform Board was established to enable officers to develop an action plan for managing the introduction of Universal Credit in Ashfield.

 

The Housing Management & Tenancy Team established a working relationship with the Department of Work and Pensions Team (DWP) to enable information to be shared and staff were trained to offer money management advice and support to new claimants during their transition.  A couple of roadshows were held which focussed on fuel and food poverty and again offered money management advice to visitors as necessary.

 

Committee Members acknowledged that the Council’s Housing Management & Tenancy Team had undertaken extensive preparation work in readiness for the introduction of Universal Credit and had continued to explore new and innovative ways to offer ongoing assistance to new claimants.  Members took the opportunity to commend officers for their hard work and ongoing commitment to the process.

 

An informal working group meeting had been held and this offered the opportunity for Members and officers to meet with a DWP representative and discuss their working relationship and the payment and support mechanisms currently in place including managed and advance payments and third party deductions.

 

The key review findings had emerged as follows:-

 

·         financial issues for claimants during the first payment waiting period;

·         minimal statutory support available to assist claimants with the transition process;

·         communication gaps for Councillors regarding their knowledge and understanding of Universal Credit;

·         the escalating financial impact to Ashfield District Council in relation to rent arrears;

·         social impact and hardships being experienced by claimants undertaking the transition process.

 

To inform Members further, the Service Manager for Scrutiny and Democratic Services circulated a list of testimonials to the Committee outlining real life experiences from claimants transitioning onto the Universal Credit regime.

 

The document evidenced that many different issues were being experienced by claimants and the Housing Team were always endeavouring to resolve them to ensure the transition process for the Council’s residents was as unproblematic as possible.

 

The Service Manager for Housing Management & Tenancy Services advised Members that current data revealed that there were currently 996 Universal Credit claimants at Ashfield with 472 now showing arrears.  The Universal Credit element of rent arrears for the Authority stood at around £192,000.  The figure had been higher but some excellent work undertaken by the Rent  ...  view the full minutes text for item 17