Agenda item

Purpose of Report

 

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

 

 

Decision

 

1.    That the content of the report be noted, and a further update be presented at the next meeting of this Committee.

 

2.    That Joint Committee:

 

 

Alternative Options Considered and Rejected

 

None.

 

Reason for Decision

 

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

 

The national Welfare Reform agenda had 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 – and 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 operating of our shared service, to ensure a proactive and positive response to welfare reform and the impacts on residents.

 

The Covid-19 pandemic and cost of living related matters had caused significant challenges to households locally and nationally. The Revenues and Benefits Shared Service played a lead and key role in developing deliverable schemes to help mitigate some of the impacts of cost-of-living challenges. Some of these schemes were directly delivered by this Service, some in partnership with other teams within the Councils, also with organisations such as those in the voluntary sector.

 

Universal Credit (UC)

 

The latest national figures published by the Department for Work and Pensions (DWP) were released on 9 July 2024, with statistics relevant to the period up to May 2024:

 

• 6,757,693 households receiving UC

(this was an increase from 6,458,756 as reported at the last meeting of this Committee).

 

Local authority statistics:

 

• City of Lincoln – 12,900 (12,495 as at the last report).
• North Kesteven – 8,172 (7,857 as at the last report).

 

On 25 April 2022, the Secretary of State for Work and Pensions made a statement in the House of Lords (Written statements - Written questions, answers and statements - UK Parliament) regarding managed UC migration for working-age legacy benefits – with the aim of completing this migration by the end of 2024. A ‘Discovery Phase’ of migration had been taking place, with a number of areas around the country (not Lincolnshire) with a relatively small number of UC cases.

 

DWP released information to state those in receipt of Tax Credits would be asked to apply for UC by the end of 2024 (Tax credits are ending - Understanding Universal Credit). DWP also announced, through the Autumn Statement 2022, that the managed migration of Employment and Support Allowance (ESA) cases had been delayed to 2028/29. A further announcement was made on 19 April 2024 with plans to bring forward the managed migration of ESA cases. Notifications for this group were now planned to commence in September 2024 with the aim of notifying everyone to make the move to UC by December 2025, - however no definitive timescale had yet been announced and this could change.

 

As at the time of writing this report, further information was awaited from DWP in terms of estimated numbers of cases anticipated as moving from a legacy benefit (for example, Housing Benefit (HB)) to UC in 2024/25, - as well as a more definitive timeline for the next 18-24 months. Under current plans, our shared service would continue to be responsible for administering and processing HB claims for those of pension age, all Council Tax Support claims, and Exempt/temporary accommodation HB claims, - as well other related work such as Discretionary Housing Payments. Revenues and Benefits management continued to keep the whole LiNK team aware of UC managed migration and the potential impacts moving forward.

 

Discretionary Housing Payments (DHP)

 

On 13 March 2024, DWP announced DHP government grants for 2024/25. For City of Lincoln and North Kesteven, these were exactly the same amounts as for 2023/24 at £132,330 for City of Lincoln and £86,931 for North Kesteven respectively.

 

The table at paragraph 5.2 of the report broke down the number of DHP applications received and determined in Quarter 1 2024/25.

 

Local Housing Allowance (LHA) rates increased from 2024/25 (Local Housing Allowance (LHA) rates applicable from April 2024 to March 2025 - GOV.UK (www.gov.uk)), having previously been ‘frozen’ for several years. Increased LHA rates may help affordability of rents for some private sector (and some social sector) tenants, however as things stood this was only a ‘one year unfreeze’.

 

Household Support Fund

 

 

Household Support Fund wave 5 (HSF5)

 

In the Spring 2024 budget, the Government confirmed that a further £421 million would be made available to county councils and unitary authorities in England via the Household Support Fund (HSF) for the period 1 April to 30 September 2024. The fund was intended to support vulnerable households most in need with the cost of essentials, such as food, energy and water

 

Following the publication of the scheme guidance on 2 April 2024, Lincolnshire County Council presented a report to its Overview and Scrutiny Management Board (H (moderngov.co.uk)), setting out details of the scheme and options to utilise the Lincolnshire allocation of £5,464,685.20 for the benefit of residents most in need of support. This was the fifth round of funding and as with earlier rounds, collaboration with District Councils was required to effectively deliver the scheme. Relationships with delivery partners and mechanisms were now well established with learning taken from previous funding rounds. As with previous rounds, Lincolnshire County Council proposed that funding be allocated to schools and early years providers to distribute to targeted cohorts and to support eligible care leavers in supported living accommodation. The remainder would be allocated to District Councils using the Indices of Multiple Deprivation (IMD), to support the delivery of an application-based element and locally determined schemes that met the specific needs of communities.

 

Allocated shares of HSF5 for our shared services were as follows:

Officers were again working with an established range of referral partners and application processes – as well as some new partners/routes – to ensure these HSF5 monies (through vouchers, food parcels, energy top-ups, etc.) were delivered to those identified as in need. A key focus was again on reducing foodbank dependency wherever possible, working with partners to help residents to access other means of support (e.g. money advice), - as well as supporting a drive to further increase usage of community groceries. Also, a strategic aim of HSF5, was to try and leave a ‘legacy’ of impact – as there was no guarantee of a Household Support Fund scheme (or of another form of local welfare provision) beyond 2024/25.

 

 

Extension of Household Support Fund wave 6 (HSF6)

 

On 2 September 2024, the Government announced an extension to the Household Support scheme.Department for Work and Pensions (DWP) stated there would be an extension to the Household Support Fund, for the next six months – i.e. 1 October 2024 to 31 March 2024.

 

At the time of writing this report, officers awaited further information in respect of the scheme – i.e. guidance, financial allocation for Lincolnshire (which would then follow with allocations for Lincolnshire District Councils, following discussion with Lincolnshire County Council). Officers were starting to make indicative plans how and when such a fund could be allocated, including to any potential targeted cohorts, and would look to deliver these vital funds as soon as decision-making processes and guidance allowed.

 

Cost of living pressures were likely to remain high – locally and nationally – and increase, through the winter months. With the extension of Household Support Fund now having been announced, officers would need to mobilise quickly with the aim of providing vital cost of living support monies to residents/partner organisations quickly and effectively. Depending on associated guidance with this extended scheme, officers would aim to deliver this fund/ these monies on a similar basis as previous rounds of Household Support Fund. On this basis, recommendation 11.2 of this report sought approval of a scheme in principle, and also to delegate these decisions to the Chief Executive of both partner local authorities.

 

Winter Fuel Payments and Pension Credit

 

On 29 July 2024, the Chancellor announced that Winter Fuel Payments would become means-tested from 2024/25. Eligibility information had subsequently been made available on GOV.UK (Winter Fuel Payment: Eligibility - GOV.UK (www.gov.uk)), as shown in paragraph 7.2 (of the officer’s report).

 

Lincolnshire Financial Inclusion Partnership (see Section 9 of this report) had already planned a countywide Pension Credit take-up campaign in Autumn 2024, - this announcement had brought forward this activity, and communications and take-up activities were now taking place to encourage and assist residents in claiming Pension Credit as soon possible. A national Pension Credit Week of Action also took place in week-commencing 9 September 2024 ( “You could get Pension Credit” – Week of Action to drive take up - GOV.UK (www.gov.uk)).

 

In the Chancellor’s statement on 29 July 2024, the potential of Housing Benefit and Pension Credit being ‘merged’ was mentioned. Any merger (whether this be into Housing Benefit, or into Pension Credit), would be likely to take several years, if not longer. No further detail was available at this time, however officers would continue to engage with Department for Work and Pensions colleagues.

 

Financial Inclusion

 

Financial inclusion continued to be a key objective and factor in many areas of LiNK’s work. The Lincolnshire Financial Inclusion Partnership (LFIP) was currently chaired by the Assistant Director Shared Revenues and Benefits for North Kesteven District Council and City of Lincoln Council, - which brought together organisations and partners to promote and raise the profile of financial inclusion across the county.

 

Three key areas of high-profile engagement by LFIP in 2024/25, were:

• A co-ordinated countywide approach to Pension Credit take-up activity;

 

• Co-ordination of ‘Talk Money Week’ activities in Lincolnshire during November 2024:    Talk Money Week (moneyhelper.org.uk) ;

 

• A conference to be held on 27 February 2025, at The Storehouse in Skegness (HOME | The Storehouse), to follow-up from the highly successful conferences held at the Jakemans Community Stadium in Boston in February 2023, and Jubilee Church Life Centre in Grantham in February 2024.

 

Representatives of LFIP also presented a well-received session at the Lincolnshire Suicide Prevention Conference held at Bishop Grosseteste University in Lincoln, on 4 September 2024, in respect of the links between Money and Mental Wellbeing.

 

In terms of the well-documented ongoing national cost of living pressures, both our partner Councils continued to review and update web pages dedicated to initiatives to try and assist our residents with cost of living support:

 

• Cost of Living Support – City of Lincoln Council

 

• Cost of Living Support | North Kesteven District Council (n-kesteven.gov.uk) .

 

City of Lincoln Council approved funding for some cost of living projects through the UK Shared Prosperity Fund, for 2024/25, and this work continued to deliver effective initiatives working with a range of partners.