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. 

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.

As a result of Covid-19, there had been a number of changes made to legacy benefits, universal credit and support for those in or retaining employment, which had been reported previously.  The £20 per week uplift in universal credit payment had recently ended.  A change to in the Universal Credit taper was also announced in October 2021 Budget – the amount of Universal Credit withdrawn for every pound someone earns would be cut from 63p to 55p.

The report outlined details of the Covid-19 test and trace self isolation payments introduced from 28 September 2020 to support those who had been told to self?isolate and had a legal obligation to do so.  There were two schemes – the mandatory and discretionary. Both schemes were payments of £500 and certain eligibility criteria needed to be met.

As at 21 October 2021, in total the welfare reform support team had received 3,065 applications for Lincoln and 1,166 for North Kesteven for test and trace mandatory and discretionary self-isolation payments or through the winter grant scheme, with 1,229 clients for Lincoln and 564 for North Kesteven having received a payment.

Latest figures for discretionary housing payments (DHP) spend showed an unallocated grant of £25,751 remaining for City of Lincoln and £17,059 for North Kesteven. This figure could be reflected against a total allocated fund of £186,707 for City of Lincoln and £125,652 for North Kesteven in 2021/22. 

For 2021/2022, Local Authorities were not given their full DHP grant for the year. It was announced by the DWP on 20th September 2021 that they had allocated the final part of funding for the financial year. Overall, City of Lincoln’s grant has decreased by 25.4% compared to 2020/2021 and North Kesteven’s has decreased by 28.9%.

The council tax hardship fund, which had been part of the government's response to Covid-19, had been expected to be used to provide council tax relief, alongside existing local council tax support schemes for 2020/21. The amounts spent up to 30 September 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.

It was reported that £421 million had been made available in England for the Household Support Fund to support those most in need this winter. This funding covered the period 6th October 2021 to 31st March 2022. £5,464,685.20 had been awarded to Lincolnshire County Council under section 31 of the Local Government Act 2001, to administer the scheme and provide assistance to households most in need.

The expectation was that it should primarily be used to support households in the most need with food, energy and water bills. It could also be used to support households with wider essential costs. At least 50% of funding must be spent on families with children.