Agenda item - Universal Credit Support Staff

Non-Key Decision

Portfolio Holder: Councillor John Wilmott – Cabinet Member (Outward Focus)

that a Welfare Reform Officer, to assist with the wider roll out of Universal Credit and assist tenants in paying their rent, be added to the Council’s establishment for a fixed term of two years.

REASON FOR DECISION

To increase the range and capacity of advice and support offered by the Council to tenants in order to both reduce the risks of rent arrears and also assist in the sustainment of tenancies.

ALTERNATIVE OPTIONS CONSIDERED AND REASONS FOR REJECTION

1. Not to recruit - This option was not recommended due to the number of tenants who will be directly affected by the introduction of Universal Credit and the need to protect the Housing Revenue Account income stream which faces significant risk due to the direct payment of housing costs to tenants rather than the Council itself.

2. Outsourcing the provision of advice - This option was not recommended due the potential delays it may cause, the need to have a data sharing agreement and for the potential for advice contrary to Housing’s ‘rent first’ policy when using Housing Revenue Account money to provide monetary advice.

The Service Manager - Housing Management and Tenancy Services, submitted a report seeking approval for a Welfare Reform Officer to be added to the establishment for a fixed term of two years in order to assist with the wider roll out of Universal Credit and to assist tenants in paying their rent.

The report noted that many of the Council’s tenants were already experiencing financial difficulties as a result of the Government’s welfare reform programme, where Universal Credit was replacing and combining a number of existing benefits, including Housing Benefit, into one single payment made directly to the claimant. It was noted that Universal Credit had been phased in within the Ashfield area, with the full roll out of Universal Credit across Ashfield scheduled to be completed by November 2018.

The report highlighted concerns, based on the evidence of the roll out of Universal Credit in other areas, about tenants’ capacity to manage the direct payments of housing costs, as families and particularly vulnerable tenants, may be un-used to receiving multiple benefits directly in one combined monthly payment and spreading that money across the month. It was noted that as a consequence of these changes there was a significant risk that tenants could potentially use the housing element of the Universal Credit payment to cover other bills and debts instead of prioritising rent payments, and as a consequence of this put approximately £13 million of rental income to the Council at risk. It was noted that 81 of 102 tenants in Ashfield currently in receipt of Universal Credit were currently in rent arrears. In order to mitigate this risk, it was proposed that a Welfare Reform Officer to be added to the establishment for a fixed term of two years to assist tenants, and particularly those vulnerable tenants, with budgeting and support in paying their rent on time in order for them to avoid getting into rents arrears, and as a consequence protecting the Council’s Housing Revenue Account income stream.