The Committee will receive a presentation from the Senior Head of Community and the Revenues & Benefits Manager on the recent Welfare reforms.
Minutes:
The Committee received a presentation from the Revenues and Benefits Manager on the recent Government Welfare Reforms.
The Revenues and Benefits Manager gave on overview of the Government Welfare Reforms that had been described as “The biggest change to the Welfare system in a generation”. The initial reforms in 2012 had included a, cap to the Local Housing Allowance and restriction to the 30th percentile, having previously been the 50th percentile. The 30th percentile is a mathematical value which represents the level of rent where around 3 in 10 properties are let at or below the Local Housing Allowance. Other changes included the housing benefit under 35 rule, changes to tax credit, an increase in non-dependent deductions and the phasing out of incapacity benefit.
Further reforms in 2013 had localised support for Council Tax, introduced Spare Room Subsidy (Bedroom Tax), Universal Credit, Personal Independence Payments which had replaced the Disability Living Allowance, and a cap on benefits. The Committee was advised that further details were contained on the East Sussex County Council website.
The localising support for Council Tax had resulted in a £1 million loss in funding and would affect 470 taxpayers in Eastbourne with a potential loss of £60,000. The Revenues and Benefits Manager had advised that the Council had taken advantage of a transitional grant that the Government had provided.
The Spare Room Subsidy would affect 325 tenants with a 25% reduction, 78 of which were Eastbourne Homes Ltd tenants. 535 tenants would be affected by a 14% reduction, 111 of which were Eastbourne Homes Ltd tenants.
The cap on benefits, which would begin on 15 July would restrict the out of work benefits of working age households to a maximum of £500 per week for couples/lone parents and a maximum of £350 per week for single people. This would result in a total loss of £110,000 per year.
The Revenues and Benefits Manger then gave an overview of Eastbourne Borough Council’s response to these reforms. The Committee was informed that the Council had contacted all those residents that would be affected by the Spare Room Subsidy and Benefits Cap and had assisted households to downsize. The Council had also revised their discretionary housing payments policy that would help residents to pay their rent.
Other responses included an action plan being produced by the Council and Eastbourne Homes Ltd in close partnership, the Council working closely with Job Centre+ and a Welfare Reform package being placed on the OLLIE (On Line Learning in Eastbourne) training system. The Committee was advised that this package would be going live shortly and would be mandatory for all Eastbourne Borough Council staff and Councillors. East Sussex County Council had also produced a YouTube video on their website that explained the changes to residents in East Sussex.
The Committee queried whether there had been an increase in the public using the local food bank. The Revenues and Benefits advised that although they did not have a specific figure at this time, they would email the Committee with a figure following the meeting.
In a response to a question on whether residents were being trained to manage budgets, the Revenues and Benefits Manager advised that East Sussex County Council were currently working with Third Sector that would see residents being referred to them for advice.
The Committee expressed their thanks to the Revenues and Benefits Manager and the Benefits Team for their hard work during this period.
NOTED.