Agenda item

7.1

The Committee received a report of the Director of Policy, Performance and Communications which examined the impact of both the 'bedroom tax’ and of other changes to the welfare system on the people of Sheffield, and explained what the Council was doing to support Sheffield residents in response to the Welfare Reform agenda.

7.2

Attending for this item were Councillor Mazher Iqbal, Cabinet Member for Communities and Inclusion, James Henderson, Director of Policy, Performance and Communications, and Maxine Stavrianakos, Manager, Income Management Unit, Council Housing Service.

7.3

Members made various comments and asked a number of questions, to which responses were provided as follows:-

·                     Council officers were in regular contact with other social landlords and had jointly produced a DVD which outlined the effects of the Welfare Reforms on the people of Sheffield.  In addition, work was being undertaken with the other local authorities in South Yorkshire to assess the impact of the Welfare Reforms and benchmarking was being undertaken with a wider group of local authorities, from Nottinghamshire to the North East, in this regard.

·                     The Council supported downsizing but would not force anyone to move house.  If people wanted to move home they were given priority and financial and practical help.  Smaller properties were available provided requests were reasonable and priorities were continually being reviewed by the Access to Housing Team.  Other measures such as mutual exchanges, advice on lodgers and allowing people to move if they were in arrears were also being used to assist those who were affected by the Welfare Reforms.

·                     In relation to rent collection, it was not possible to set up a direct debit without the tenant’s authorisation and there was a ten day notice period of any intention to increase the amount of any direct debit.  A more flexible approach to rent arrears was being adopted, with a period of 5 weeks being allowed to elapse before an initial letter was sent out.  The importance of early contact by those tenants in financial difficulties was emphasised, in order that appropriate advice and support could be provided.

·                     In relation to employment, Council officers were working with the Department for Work and Pensions (DWP) to find out about work programmes, with direct contact lines being established and joint working being considered.

·                     The DWP was considering transitional arrangements in relation to the move towards monthly rather than weekly payments and Council officers were working with Credit Unions, in conjunction with the advice sector, to assist people with budgeting.  It should be noted that there would be an obvious impact on rent arrears, particularly bearing in mind that, under the new regime, housing benefits would now be paid directly to the individual.

·                     The Leader of the Council, Councillor Julie Dore, had written to Lord Freud, Parliamentary Under-Secretary (Department for Work and Pensions) (Welfare Reform), to invite the DWP to work with the Council in relation to the introduction of universal credit, so that the Council could provide appropriate support to people, but this had been met with an equivocal response.

·                     In order to avoid the destabilisation of communities, the Council would do everything it could to support people who wanted to stay in their homes. 

·                     The Government would not allow the reclassification of bedrooms.  If the Council attempted this there was a risk of further withdrawal of Government funding.

·                     The Council was finding out about individuals who were most affected by the reforms through the advice sector and would do what it could to support individuals.

·                     The Council’s policy was that tenants would not be evicted if they were engaging with the Council in relation to any resulting rent arrears, which reflected the policy of other local authorities who claimed to have a ‘no eviction’ policy.

·                     There was a local project on tackling doorstep lending in which  the Dean of Sheffield Cathedral was involved. 

7.4

RESOLVED: That the Committee:

(a)       thanks Councillor Mazher Iqbal, Cabinet Member for Communities and Inclusion, James Henderson and Maxine Stavrianakos for their contribution to the meeting;

(b)       notes the contents of the report and responses to questions; and

(c)        requests that:

(i)      a copy of the report be sent to the Rt. Hon. Nick Clegg MP, Deputy Prime Minister, to seek his intervention to help alleviate the issues raised in the report;

(ii)     a one page update on progress with Welfare Reform issues be provided to Committee Members bi-monthly;

(iii)    a further report on the Impact of Welfare Reform on Sheffield’s Residents, to include examples of how other local authorities were dealing with these issues, case studies and an explanation of the way in which Capita was managing these changes, be presented to the Committee in 6 months’ time;

(iv)    officers inform the Chair and Deputy Chair, through the Policy and Improvement Officer, of any urgent issues which may arise in relation to the effect of the Welfare Reforms so that such issues may be given appropriate consideration; and

(v)     the Director of Policy, Performance and Communications arranges for appropriate publicity for the Council’s policy that tenants in rent arrears would not face eviction provided they were engaging with the Council with regard to those arrears.