Agenda item

Purpose of Report

 

To provide the Shared Revenues and Benefits Joint Committee with an update regarding various areas relating to the national welfare reform agenda, as well as current initiatives to support residents. 

 

Decision

 

That the content of the report be noted, with a further update to be presented to the next meeting of Shared Revenues and Benefits Joint Committee

 

Alternative Options Considered and Rejected

 

None.

 

Reason for Decision

 

This report provided Shared Revenues and Benefits Joint Committee with an update on the national and local position of welfare reform/other initiatives, with a specific focus on Universal Credit, Test and Trace Support Payments, Discretionary Housing Payments, Council Tax Hardship Fund, Household Support Fund, Council Tax Energy Rebate, and Financial Inclusion matters.

 

The national Welfare Reform agenda had resulted in a significant impact on residents of Lincoln and North Kesteven since 2013 when certain changes were introduced such as Removal of Spare Room Subsidy, and Benefit Cap; this had continued as further changes had been introduced, such as the ongoing rollout of Universal Credit. These changes had resulted in major changes to the operation of our shared service, to ensure a proactive and positive response to welfare reform and the impacts on residents.

 

The following updates were noted:

 

Universal Credit

 

 

On 25^th April 2022, the Secretary of State for Work and Pensions made a statement in the House of Lords (regarding managed UC migration for working-age legacy benefits – with the aim of completing this migration by the end of 2024. Further information regarding the migration process was published on GOV.UK (Completing the move to Universal Credit - GOV.UK (www.gov.uk)) and since then, an initial 500 cases in Bolton and Medway areas had been invited to migrate from legacy benefits to UC.

 

There was currently no further detail as to the rollout schedule for other areas of the country, officers had made contact with DWP colleagues locally and nationally and would report back to this Committee with relevant updates at future meetings.

 

COVID-19 Test and Trace Support Payments

 

The Test and Trace Support Payments (TTSP) scheme (with mandatory and discretionary elements) had now ended (30^th April 2022). The Welfare Reform Support Team was in receipt of all applications and had undertaken assessment decisions. The team also secured further funding from Lincolnshire County Council to make TTSP related payments utilising Winter Grant Scheme monies.

 

In total, the team received 4,918 applications for City of Lincoln, of which at the time of writing this report on 5^th May 2022, 2,091 had received a payment.

 

In total, the team received 2,668 applications for North Kesteven, of which at the time of writing this report on the 5^th May 2022, 1,017 had received a payment.

 

Discretionary Housing Payments (DHP)

 

City of Lincoln’s DHP government grant for 2021/22 was £186,707 and North Kesteven’s £122,652. The impact of Universal Credit (UC) as well as Covid-19, resulted in a high demand for DHP. North Kesteven District Council allocated up to a further £40,000 to top up the funding from Central Government, to supplement the Central Government grant up to 31^st March 2022. Additional funding was also in place for City of Lincoln Council to continue awarding DHP for the remainder of 2021/22, based on projection of spend.

 

DHP spend for the whole of the financial year 2021/22 amounted to £195,454 (104.68% of DHP Grant) for City of Lincoln and £135,260 (110.28% of DHP Grant) for North Kesteven.  

 

Overall DHP funding for 2022/23 had been cut nationally from £140m to £100m.  Consequently, grants for City of Lincoln and North Kesteven had also been reduced by more than 30% each.

 

In 2021/22, Government DHP grants were supplemented for both authorities through the Councils’ own funds, to keep paying eligible DHP claims. Longer term this was not sustainable, therefore much consideration had been undertaken in advance of 2022/23 in terms of how the reduced grant could help to assist those most in need of help with their housing costs.

 

DHP had become a longer-term form of help for some residents as their financial and housing situation each year had been as such that they remained entitled to DHP. However, DHP was generally only meant to be a short-term form of financial assistance.

 

In 2022/23, focus would be more towards shorter-term assistance through DHP, with availability and provision of appropriate debt/benefits advice and tenancy/housing options support for residents. Officers would monitor impacts and spend closely,and an update wouldl be provided at the next meeting of this Committee.

 

Council Tax Hardship Fund

 

As part of its response to COVID-19, the Government announced in the Budget 11^th March 2020 that it would provide local authorities in England with £500m of new grant funding to support economically vulnerable people and households in their local area.

 

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. The Guidance notes released on 24^th March 2020 delivered confirmation of the grant allocation.

 

Grant allocation was made based on the Council Tax Support (CTS) working age caseload and City of Lincoln was awarded £1,209,846, and North Kesteven £535,715.

 

Due to a delay in an IT script being provided (due to the announcement of the Council Tax Energy Rebates), in the region of £200k (Lincoln) and £90k (North Kesteven) was still to be allocated. The intention was that this would now be allocated to identified cohorts’ Council Tax accounts in the early part of 2022/23.

 

Household Support Fund

 

421 million was made available in 2021/22 for England to support those most in need over the winter period. This funding covered the period 6^th October 2021 to 31^st March 2022. £5,464,685.20 was 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.

 

A Lincolnshire Districts’’ scheme was live from 1^st December 2021 to the end March 2022. Our Revenues and Benefits Shared Service worked with a range of other organisations making referrals, delivering these Household Support Fund payments for City of Lincoln and North Kesteven.

 

For the months of December 2021-March 2022, £427,562 was awarded by City of Lincoln Council and £271,082 by North Kesteven.

 

As part of the Chancellor of the Exchequer’s Spring Statement in March 2022, a second Household Support Fund was announced. Detail was subsequently provided in April 2022, with an equivalent amount of £5.4 again being allocated to Lincolnshire County Council. Funding criteria included a new requirement for at least 33.33% of payments to be allocated to those of pension age. Advanced discussions were taking place between Lincolnshire County Council and Lincolnshire District Councils’ representatives, and it was hoped an announcement on a new scheme could be made in the near future. A third scheme to cover the period from October to March 2023 had also been announced, however, further detail was awaited.

 

Council Tax Energy Rebate

 

On 3^rd February 2022, Central Government announced a package of support known as the Energy Bills Rebate to help households with rising energy bills, worth £9.1 billion in 2022-23 which included:

 

·         A £200 discount on energy bills this autumn for domestic electricity customers in Great Britain. This would be paid back automatically over the next 5 years;

·         A £150 non-repayable rebate for households in England in Council Tax bands A to D, known as the Council Tax Rebate, mandatory;

·         £144 million of discretionary funding for billing authorities to support households in need but not eligible for the Council Tax Rebate, known as the Discretionary Fund.

 

Payments of the £150 Council Tax Rebate were being made automatically as far as possible for Council Taxpayers who paid by Direct Debit, as current bank details were held for these residents. Following necessary ICT releases being made available then tested, payments started to be made in week-commencing 25^th April 2022 to both local authorities.

 

Where the Council Taxpayer did not pay by Direct Debit, officers would be contacting customers to obtain the relevant details. It was envisaged, subject to successful system testing, that this would commence by the end of May 2022.

 

All payments under the mandatory scheme must have been made by 30 September 2022.

 

As of 31 May 2022, over 22,000 Council Tax Rebate payments had been made to City of Lincoln Council Taxpayers making payments by direct debit, and  over 31,000 for North Kesteven. The first of letters to non-direct debit payers had gone out this week.