Agenda item

The Council’s Scrutiny Research Officer took the opportunity to update Members in relation to the ‘Impact of Universal Credit’ review.

Further information had been requested at both the last formal meeting of the Committee on 18^th July and the informal working group meeting held on 7^th August in relation to Universal Credit payment methods, support services on offer and current food and fuel poverty issues.

A variety of officers with a range of areas of expertise were in attendance at the Informal Working Group meeting and these included the following:-

Nicky Moss, Service Manager – Housing Management & Tenancy Services

Peter Curry, Housing Management Advisor

Craig Scott, Service Manager – Revenues and Benefits

Sue Fielding, Senior Employment & Partnership Leader – Department

for Work and Pensions.

The current working arrangements and relationship between the Council and the Department for Work and Pensions (DWP) was discussed including the types of support payments in place. 

At present, through the Universal Credit process, advanced payments were available should claimants need help to pay their bills or cover other expenses whilst the payment application process was being administered (usually with a six week waiting time).  This advance payment would then be paid back through future Universal Credit payments at a level acceptable to the claimant and their current commitments or obligations. 

A ‘Help to Claim’ service was also currently provided through Citizen’s Advice which was aimed at assisting claimants to prepare for the application process and to offer advice and support for jobcentre appointments as necessary.

Members had also raised concerns in relation to food and fuel poverty and since the introduction of Universal Credit, England was experiencing the second highest rates of fuel poverty in Europe.  Universal Credit was leaving households without payment for up to six weeks which was leaving claimants vulnerable and facing the ‘heat or eat’ dilemma.

In relation to food poverty, a charity called The Trussell Trust was a national anti-poverty organisation which supported a network of food banks nationwide.  A recent report released by the charity had shown that when Universal Credit was introduced into an area, demand on food banks immediately increased and was still showing an increase of up to 52% even after a 12 month roll out programme had been completed.

Key findings within the report had also shown that:

1.    Waiting for a first payment had immediate consequences with 70% of survey respondents finding themselves in debt, 57% experiencing issues with their mental or physical health and 56% experiencing housing issues.

2.    There was little statutory support available during this waiting period with 63% of respondents being offered no help or just a food bank voucher.

3.    Only 8% of people surveyed by the Trussell Trust said their full Universal Credit payment covered their cost of living with this being even less for disabled people or people with ill-health.

4.    Poor administration of the Universal Credit process was a persistent concern with 35% having waited longer than six weeks for their first payment.

A lengthy discussion followed whereby Members took the opportunity to consider the following:-

·         The impact that Universal Credit was having on usage of local food banks within Ashfield and how they were coping with the increased demand;

·         the lengthy waiting times for the processing of Universal Credit and its detrimental impact on the welfare and wellbeing of Ashfield’s residents;

·         the urgent need for money to be made available to residents to bridge the gap whilst waiting for their claims to be processed;

·         an acknowledgement of the Council’s commitment to its residents and the dedicated team of officers already in place offering support and assistance to claimants as required;

·         the difficulties being experienced by claimants whilst using the digital portals and insufficient guidance and support being offered by the designated ‘work coaches’ to overcome the issues being faced;

·         some potential solutions for increasing support for claimants during the six-week administration/processing period;

·         acknowledgment that the Universal Credit regime would remain in its current form for the time being, notwithstanding the consistent lobbying of central Government to bring about some much needed changes;

·         the longer term risk to the Council’s financial position due to the impact of Universal Credit on successful rent collection;

·         a suggestion to widen the availability of appointment times to process Universal Credit applications (currently 9am to 4pm), to accommodate claimants who have work commitments during the day.

RESOLVED that

a)    the following officers be invited to the next meeting of the Committee to further assist Members with the review:-

• Department of Work and Pensions Representative;
• Nicky Moss, Service Manager – Housing Management & Tenancy Services;
• Councillor Keir Barsby – Portfolio Holder for Housing;
• Councillor Samantha Deakin – Portfolio Holder for Customer Services and IT;

b)    the Service Manager, Scrutiny and Democratic Services be requested to arrange a Welfare Reform/Universal Credit training session to ensure all Members are kept abreast of the current welfare reform legislative requirements, the Universal Credit application process and its ongoing impact on the Council and the residents of Ashfield.

(During consideration of this item, Councillor Dale Grounds left the room at 7.47pm and returned to the meeting at 7.50pm.)