Agenda item

7.1

The Executive Director, Communities Portfolio, submitted a report providing a summary of the key changes influencing the Housing Revenue Account (HRA) Business Plan update for 2013/14 and focusing on welfare reform as a key risk to the Business Plan.  In attendance for this item were Liam Duggan, Council Housing Client Team Manager, Communities Portfolio, and Maxine Stavrianakos, Sheffield Homes.

7.2

Member of the Committee raised questions and the following responses were provided:-

·               This Committee had agreed, at a previous meeting, to extend priority rehousing to tenants under-occupying two-bedroom dwellings.

·               At the present time, the rules set out in the Rent Arrears Policy, agreed in 2001, still applied.  Working practices had changed to enable tenants to be paid benefit on a monthly basis, but the official changes would be implemented in early April 2013.  Following on under the Universal Credit system, people would be entitled to receive benefit payments any day of the month, but there was likely to be a period of change until the new arrangements were in place.  This was likely to be in 2017.  Support would be provided where required, and tenants would be able to apply for assistance from the hardship fund.  This fund would not comprise a financial payout, but would involve the writing off of arrears.

·               If tenants had genuine rent arrears, and were deemed to be genuinely struggling financially, they would be granted an affordability priority. 

·               There would be changes to the computer-generated letters.  Prior to June/July 2012, the first letter was sent out three weeks in arrears, whereas now they were sent out five weeks in arrears.  The plan was to find out which day each tenant received their benefit.

·               The Council had undertaken a huge amount of work in terms of communicating the changes to tenants, which had included  leaflets and information on letters sent to tenants and posters in Area Housing Offices and other public venues, as well as on buses and other modes of transport.  Additional staff had been employed specifically to visit, and provide basic advice to, those tenants who were likely to be affected by a benefit cap or under-occupancy.  A number of tenants had requested advice, and had been referred to the Debt Advice Service or other independent debt workers, including the Citizens’ Advice Bureau.  A number of tenants had been interested in downsizing properties, and had been provided with the relevant advice. 

·               If people were wanting to downsize, and they had genuine rent arrears, they would not be penalised.  In fact, it would assist the Council if people wanted to downsize.  Despite this, it was highly likely that, due to the changes, the number of evictions would ultimately increase. 

·               Officers would assess all cases of rent arrears, and those tenants deemed to have genuine arrears would not be penalised. 

·               It was likely that there would be huge pressure on Sheffield Credit Union and officers were looking at how the Council could support the Union.  It was likely that the Union would have to levy a small charge for its services.

7.3

RESOLVED: That this Committee:-

(a)

notes the contents of the report now submitted, together with the responses to the questions raised;

(b)

thanks Liam Duggan and Maxine Stavrianakos for responding to the questions now raised; and

(c)

requests that a detailed report on the effects of welfare reform, to include a full analysis of the numbers of people who have moved, or wanted to move, following the changes, be submitted to its meeting in September 2013.