Agenda item

6.1

The Committee received a report of the Director of Policy, Performance and Communications, which provided an update on the impact of welfare reform on Sheffield’s residents and how the Council and others were responding. 

6.2

In attendance for this item were Nicola Rees, Policy and Improvement Officer, and Maxine Stavrianakos, Income Management Unit. 

6.3

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

·                Council tenants wishing to downsize as a result of the Under-Occupancy Provisions (Bedroom Tax) would be given priority, whilst tenants in arrears would not be evicted as long as they were making some attempts at payment.  In addition, tenants would be allowed to move house even if they were in arrears.

·                In relation to the Benefit Cap, the number of children in affected households averaged at 5/6 per household.  This was because there weren’t many families in Sheffield affected by the Benefit Cap and those that were affected were likely to be families with a greater number of children, who were therefore living in larger properties, with higher housing costs.

·                The cost of the research by the Sheffield Hallam University’s Centre for Regional, Economic and Social Research (CRESR) was £15,000 and officers would provide a written response regarding the associated cost/benefit analysis.

·                Approval had been given to use the 2013/14 Council Tax Hardship Scheme underspend during 2014/15, but only for amounts owing during 2013/14.  It was highly likely that this money would be used to assist customers who ran up debt in 2013/14 and who were now at a stage when referral to an external collection agency was the next course of action.  Officers would provide a written response regarding the Local Assistance Scheme underspend.

·                Officers would provide a written response with regard to general Council Tax arrears.

·                Since April 2013, 459 Council tenants had been awarded a rehousing priority to move to a smaller property, of which 363 had stated that this was due to the impact of welfare reforms.  However, the majority of Council tenants did not want to move and were opting to stay and pay.

·                A tenant who had received a Discretionary Housing Payment would be included in the relevant ‘Paid in Full’ section of the ‘Payment Towards Under-Occupancy Cut in Benefit’ pie chart in the report.

·                Officers would provide a written response regarding the numbers of tenants who were over-occupying.

·                Officers would supply written details of Council tenant rent arrears by Ward and details of households affected by the Benefit Cap by Ward.

·                No Council Housing Service tenants had been forced to move into a smaller property and become overcrowded because of the Benefit Cap.  Officers would check to see if this information was available for private tenants and those in Registered Social Landlord properties.

·                At the present time, no one had been evicted under the Under-Occupancy Provisions.  In relation to general evictions, there had been 390 in the past year, but this high figure was partially explained by the inclusion of water rates in Council rents, so that sometimes evictions would take place on the basis of unpaid water rates alone.  The Council did not offer introductory tenancies and there were increases in the numbers of tenants aged up to 29 years who weren’t paying anything.  It was the practice of local judges to give immediate possession, but suspended possession orders were likely to be given if the tenant was engaging with the Council.  In comparison with other large housing organisations, the Council gave more support to tenants in arrears and also worked closely with the Courts to adopt best practice.  Rent arrears caused by the welfare reform changes were currently estimated by the Council Housing Service to spike at £29 million by 2019/20.  The numbers of people who were evicted and then got rehoused, sometimes privately, were difficult to track, but officers would try to obtain information on this.

·                Whilst officers were aware of other spending cuts which were affecting communities, such as reductions in funding for teaching English as a Second or Other Language (ESOL) provision, they were not aware of any specific analysis of the cumulative impacts on individuals of wider cuts within communities, over and above benefits cuts.  However, the close links which the Council had with Sheffield Citizens’ Advice did assist in building up a wider picture about other issues, such as ESOL cuts, which were affecting communities. 

·                The CRESR report had been commissioned to give the Council as thorough a picture of the cumulative impacts of the welfare reforms as possible.  In terms of what would be done with the subsequent report, the Welfare Reform Implementation Group had a work stream entitled Strategic Policy and Direction and it was hoped that the subsequent report would provide the information to enable recommendations to be made as to future direction.  It should also be borne in mind that things may change as a result of the forthcoming General Election.

·                The CRESR researchers would address the issue of possible offsetting of increases in employment in their report, and officers would ask if it would be possible to also include within the report some reference to changes in personal tax allowances.

6.4

RESOLVED: That the Committee:-

(a)       thanks Nicola Rees and Maxine Stavrianakos for their contribution to the meeting;

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

(c)        accepts the officer responses regarding the adoption of the aspects of best practice operating in Bristol and Manchester; and

(d)       requests that:-

(i)          officers continue to look at best practice and highlight this in any future reports to it;

(ii)        officers provide their written responses to Matthew Borland, Policy and Improvement Officer, for circulation to Committee Members;

(iii)       the report be circulated to all Council Members and Sheffield Members of Parliament for them to note and respond to if they so wish;

(iv)       a letter be sent to the appropriate Government Minister concerning the end of the Government grant to Local Authorities to provide a Local Assistance Scheme in March 2015, with a request for a response;

(v)        Members wishing to take up the offer to visit the Rents Team contact Matthew Borland, Policy and Improvement Officer; and

(vi)       a further report on the Impact of Welfare Reform on Sheffield’s Residents, be presented to the Committee in six months’ time.