Toggle menu

Councillors and committees

Agenda item

Case Study - Welfare Reform Update and the Implementation of Universal Credit in Gateshead

Report of the Strategic Director, Corporate Resources

Minutes:

The Committee received an update report on the implementation of Universal Credit (UC) within Gateshead and other changes arising from: the Welfare Reform Act 2012; the Chancellors Autumn Statement 2015; and the Welfare Reform and Work Act 2016.

 

It was noted that UC will be made via an online application and will be a single household payment, paid monthly in arrears.

 

It was reported that to date, UC has been implemented in Gateshead, Blaydon and Felling Job Centre areas (as of 15 June 2015) for a limited client group.  Birtley, Chopwell and Rowlands Gill were included from September 2015, followed by parts of Leam Lane and Wrekenton from November 2015.

 

To support the implementation of UC, the Council agreed a Delivery Partnership Agreement with DWP. As part of this agreement the Council provides support to clients and this was summarised in the report.

 

The Committee was informed that, to date, there have been 361 UC claimants within Gateshead, who were previously in receipt of Housing Benefit. A further 384 UC claimants have been assessed for Local Council Tax Support.

 

The report and a presentation outlined the actions taken by the Council and The Gateshead Housing Company (TGHC) as a result of this initial implementation of UC.

 

The report also provided updates on: under occupation; UC Full Service implementation; Local Housing Allowance; and benefit capping.

 

A number of case studies were provided in the presentation to illustrate the impact of the changes on claimants with varied circumstances.

 

It was queried why there is difficulty letting flats when there is a waiting list. It was reported that the waiting list has reduced from 11,000 to 6,000 since the introduction of housing benefit reductions for under-occupation. There has also been an increase in potential tenants choosing to rent properties in the private rental sector. The growth of the private rental sector is having an impact on demand for social housing.

 

It was noted that it is often necessary for TGHC to re-advertise vacant flats, however houses remain popular and in demand. Of the 500 vacant properties over 300 of them are flats.

 

The Committee was satisfied that the £400k of funds from the Housing Revenue Account (HRA) was effectively used as it sustained tenancies which, had they ceased, would have resulted in rental income loss.

 

It was queried whether TGHC could actively market the flats to young professionals and/or students.  It was reported that it is an option to market to college and university students however the range of choices available within this market makes it difficult.

It was commented that there are examples of exploitation within the student rental market and that marketing properties to this group may help to address that wider issue. It was also commented that a venturous approach to marketing the properties is now required. 

 

It was requested that costs to the Council of the support it provides (as part of the Delivery Partnership Agreement with DWP) be identified and provided to the Committee. It was reported that TGHC has so far managed the changes within existing resources but that pressures could increase.

 

It was queried whether the vacant properties are suitable for young people who are leaving care and are in need of housing. It was confirmed that the properties are suitable and that vacancies exist across Gateshead. It was also reported that a longer-term solution is currently being devised for the accommodation of young people leaving care.

 

There were concerns that the DWP is not able to assist with early interventions for the most vulnerable.

 

RESOLVED:

      i.         

That the issues arising from the implementation of Universal Credit were noted.

 

    ii.         

That the actions taken by the Council and The Gateshead Housing Company were noted.

 

Supporting documents:

 

Help us improve this site by giving feedback