Issue - meetings
Welfare Reform Task Group Update
Meeting: 29/02/2016 - Overview & Scrutiny Committee (Item 7)
7 Welfare Reform Task Group Update PDF 243 KB
Minutes:
The Committee received a report in relation to the Welfare Reform Update that outlined details relating to the impact of the Welfare Reform in Tower Hamlets (TH), the key support measures currently in place, the future welfare reform changes and the Council’s planned response.
Councillor Sirajul Islam, Deputy Mayor and Cabinet Member for Housing Management and Performance introduced the report and highlighted the following: -
· Government announced a number of welfare changes in their Emergency Budget and Autumn Statement;
· The existing changes are already having a significant impact on some residents in the borough and council and partner services;
· In 2014/15, 45,500 residents in TH were economically inactive of which 69% were women;
· In January 2016, 35,320 residents were in receipt of Housing Benefits of which 35% were in work;
· There are approximately 19,000 residents on the current housing waiting list in TH;
· The 2015/16 Discretionary Housing Payments Budgets was £2.7m; and
· The council has taken a cross council partnership approach to responding to welfare reform and this has been co-ordinated by the Welfare Reform Task Group.
Kevin Kewin (Interim Service Head, Corporate Strategy & Equality) presented the following information to the Committee in relation to the Welfare Reform in TH: -
· Implemented Reforms and Impact –
o Benefit Cap – 501 households impacted, average weekly reduction of £72
o Bedroom Tax – 2,100 households affected, average weekly loss £23
o Local Housing Allowance (LHA) Cap – 1,878 LHA capped, average weekly shortfall of £42 (dependent on bedrooms)
o Non Dependent Deductions – 4,495 households affected, average weekly reduction is £45
o Incapacity Benefit to Employment Support Allowance (ESA) – majority of recipients (around 12,000) have moved onto ESA
o Universal Credit – 1,368 claims to date, 50% 18-24 year olds
· The Council’s response through the Welfare Reform Task Group includes information and advice, financial support, employment and skills support and prevention and resilience support;
· Proposed reforms –
o Benefit Cap reduced to £23k
o Minimum wage earners exempt from income tax
o LHA cap applied to Housing Benefit in Social Sector
o Reduced entitlement to housing benefit for 18-21 year olds
· Cumulative impact –
o Reducing incomes
o Increasing gap between housing costs and benefit payments
o More residents need to seek employment
· Proposed responses –
o Information and advice – communication, drop-in sessions across the Borough, targeted contact
o Financial support – review of discretionary housing payments, council tax benefit scheme and crisis and support grants
o Employment and skills support – raising aspirations employment project, expansion of DHP employment case managed support project
o Prevention and resilience support – digital inclusion, financial inclusion, community mentor training and workshops
o Strategic response – affordability commission, housing strategy, early years childcare review and refreshed employment and enterprise strategy
The Committee discussed the following:
· Why is the Crisis Support Grant underspent by £200k?
· Could something be done about childcare hours, it is currently being offered at 3 hours over 5 days, more needs to be done especially for single parents and ... view the full minutes text for item 7