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, Discretionary Housing Payments, 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. Further sites were announced over summer 2022, with 250 migration notices issued in Truro, Falmouth, Harrow and Northumberland as part of the UC ‘discovery phase’.

 

On 10^th April 2023, DWP released a research and analysis document entitled ‘Completing the move to Universal Credit: Learning from the Discovery Phase’, Completing the move to Universal Credit: Learning from the Discovery Phase - GOV.UK (www.gov.uk)

 

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.

 

Discretionary Housing Payments (DHP)

 

City of Lincoln’s DHP government grant for 2022/23 was £129,643 and North Kesteven’s £85,166. The recent mid-year additional DHP grant announcement had increased both amounts marginally, therefore 2022/23 grants were now £132,330(Lincoln) and £86,931 (North Kesteven).

 

 

The number of DHP applications received and determined in Quarter 3 2022/23 was detailed at paragraph 5.2 of the officers report.

 

DHP spend for up to the end of Quarter 3 of the financial year 2022/23 amounted to £105,180, (74.73% of DHP Grant) for City of Lincoln and £73,897 (79.87% 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 29% 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 to determine they remained entitled to DHP. However, DHP was generally only meant to be a short-term form of financial assistance.

 

In 2022/23, focus was now more towards shorter-term assistance through DHP, with availability and provision of appropriate debt/benefits advice and tenancy/housing options support for residents. Officers continued to monitor impacts and spend closely.

 

In 2022/23 there had been less applications but the average award per case was higher than in 2021/22. Also, it was anticipated spend would not exceed the government grant (plus ‘top-up’ from unallocated Council Tax Hardship Fund).

 

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 and delivering these Household Support Fund payments for City of Lincoln and North Kesteven.

 

For the months of December 2021-March 2022, £427,542 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 million 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. The table at paragraph 6.2 of the officer’s report showed how these funds were allocated for the second round of Household Support Fund.

 

Lincolnshire was allocated £5.46m for the third round of the Household Support Fund. This time, the government did not ringfence any of this funding for particular groups of people. However, local authorities were asked to consider groups who may not have benefitted from any of the recent cost of living support.

 

Household Support Fund wave 3 phase 1 was delivered in Lincoln and North Kesteven in December 2022 and January 2023. Applications for support were taken from our referral partners and vouchers/payments allocated accordingly. Also, for those in receipt of Housing Benefit and not entitled to the national Cost of Living Payment, a £250 voucher was issued (via the Post Office) to these households. To the end of January 2023, under this phase of Household Support Fund, payments totalling £241,250 had been allocated to City of Lincoln residents, £209,112 to North Kesteven residents.

 

In terms of Household Support Fund 3 phase 2 – to be delivered in February/March 2023 (all payments to be made by the end of 31^st March 2023), £61,204 had been allocated to City of Lincoln and £42,078 to North Kesteven. Following decision-making protocols, officers were now working with partner organisations to deliver these monies promptly, effectively and to those identified/referred as being most in need

 

In his Autumn statement the Chancellor of the Exchequer announced an extension to the Household Support Fund, running from 1st April 2023 to 31^st March 2024. Guidance and allocations for this round of funding were still to be announced. Officers were working on protocols in terms of decision-making for the wave of funding, which would be further progressed in due course once more information was released by central government.

 

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

·         £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.

 

Energy Bill Support Scheme Alternative Funding (EBSS AF)

 

In October 2021, Central government announced that the EBSS AF scheme was intended to provide the £400 of support for households across the UK that would otherwise miss out on the Energy Bills Support Scheme – which the vast majority of households were already receiving – as they did not have a domestic electricity contract. It would also support the delivery of £100 Domestic Alternative Fuel Payments where these could not be automatically delivered to households through other means, such as suppliers.

An update was received on 20^th January 2023 stating that the scheme had been delayed, and further information would be provided in due course. It was now anticipated this scheme will go live in week-commencing 20^th February 2023.

 

Council Tax Support Scheme

 

On 23^rd December 2022, central government provided guidance to local authorities regarding a £100 million Council Tax Support Fund for 2023/24, whereby awards of up to £25 were to be made to Council Taxpayers in receipt of Council Tax Support, - with an element of funding also to be made for discretionary local funds in 2023/24. Funding allocations for City of Lincoln and North Kesteven were £222,803 and £142,500, respectively. Subject to a required ICT ‘patch’ being made available from our software providers NEC, and being successfully tested and installed into a live environment, it was hoped that the awards would be made as part of the 2023/24 annual Council Tax billing processes. Remaining funding would then be considered for both local authorities, with recommendations made in the early part of 2023/24, in relation to local discretionary schemes.

 

Financial Inclusion