Agenda item

Purpose of Report

To provide the Joint Committee with an update regarding the national and local position of welfare reform, with a specific focus on the local advice referral process, COVID-19 support and Discretionary Housing Payments (DHP)

Decision

That the content of the report be noted and an update be presented at the next meeting of this Committee.

Alternative Options Considered and Rejected

None.

Reason for Decision

This report provided Joint Committee with an update on national Universal Credit changes; including a reference to the national statistics and national legislation changes.

The report also provided Joint Committee with an update regarding local advice referral into the Welfare Reform Support team, national and local changes made to support those financially adversely affected by COVID-19 and an update on the financial position for Discretionary Housing Payments.

The report outlined details of the COVID-19 Test and Trace Self Isolation Payments (TTSP) introduced from 28 September 2020 to support those who had been told to self-isolate. The TTSP was due to end on the 31st January 2021 but was extended on the 1st February 2021 and was now due to end on 30th June 2021. Ministers were currently assessing the scheme to decide if it should continue, and a decision was expected regarding this in early June.

As at 14th May 2021, in total the Welfare Reform Support Team had received 1,312 applications for Lincoln and 797 for North Kesteven for Test and Trace Self Isolation Payments or through the Winter Grant Scheme, with 488 clients for Lincoln and 270 for North Kesteven having received a payment.

In April 2021, additional Winter Grant Scheme funding was awarded to each  authority to help those customers facing financial hardship, and in particular to  help with payments of utility bills.  The Welfare Support team identified these  cases using data from the Test & Trace applications along with referrals made by Welfare, Revenues & Benefits and Housing Officers.  A total of £65,000 was awarded to each authority and of this £59,500 was spent for City of Lincoln and £64,200 for North Kesteven.

A further round of Winter Grant Scheme funding was secured in May 2021, and as at the time of writing this report, this ‘June 2021 scheme’ has been agreed and identified cohorts of customers are being assessed regarding potential entitlement.

Latest figures for Discretionary Housing Payments spend showed an unallocated grant of £23,478 remaining for City of Lincoln and £36,544 for North Kesteven, This figure could be reflected against a total allocated fund of £250,113 for City of Lincoln and £172,612 for North Kesteven in 2020/21. Despite not spending the full allocation of central government DHP grant in 2020/21 spend was still £21,303 higher than in 2019/20 for Lincoln and £5,4640 higher than in 2019/20 for North Kesteven

As a result of COVID-19, the Welfare Reform Support Team had been able to provide vital support to new and existing customers – both over the phone and via email. The team were able to explain to customers what support was available to them (national and local), undertake assessments for Universal Credit, Housing Benefit, Council Tax Support and Discretionary Housing Payments and provide advice and guidance to the Revenues and Benefits staff regarding changes to legislation.

The report stated that the 2021/22 DHP government grants were £138,379 for Lincoln and £95,525 for North Kesteven. However, these initial allocations were only based on 71% of the national grant allocation – a mid year review would take place nationally and further DHP grants awarded to local authorities as appropriate.

The report outlined the Council Tax Hardship Fund which was  part of the Governments response to COVID-19. The expectation was that the majority of the hardship fund would be used to provide council tax relief, alongside existing local Council Tax Support schemes for 2020/21. Grant allocation was made based on the Council Tax Support (CTS) working age caseload and City of Lincoln were awarded £1,209,846, and North Kesteven £535,715. The amounts spent up to 21st May 2021 – paid towards the year 2020/21 were:

City of Lincoln Council       £678,946  towards 3,893 individual Council Tax accounts

North Kesteven                 £279,681  towards 2,562 individual Council Tax accounts 

The remaining balance of the awards would be allocated towards helping the most vulnerable with further council tax relief alongside existing local Council Tax Support schemes for the year 2021/22. Modelling was currently taking place to establish how to help the most vulnerable with a real urgency to get this delivered as soon as possible.