Decision details

To agree that any new burdens funding for welfare reforms are used for the purpose intended.

Matter for Decision: The report provided an update on the progress with Welfare Reforms.

Decision of the Executive Councillor for Finance and Resources 

The Executive Councillor resolved to:

i.       Note the areas of welfare reform and their continued impact on residents of Cambridge.

ii.     Agree that the additional 2014/15 DWP New Burdens funding of £20,307, which was paid towards the costs of implementing welfare reform changes (and any subsequent New Burdens welfare reform payments), be ring-fenced to the Revenues and Benefits service in order to be fully utilised for the intended purpose.

Reasons for the Decision: As set out in the officer’s report

Any alternative options considered and rejected: As set out in the officer’s report

Scrutiny Considerations:

The committee received a report from the Head of Revenues and Benefits.

In response to members’ questions, the Head of Revenues and Benefits and the Director of Customer and Community Services said the following:

i.       A report in relation to Council Tax Reduction scheme will be brought to Strategy and Resources in January 2015, with the recommendation that the current scheme continues for the 2015/16 financial year. (Technical changes to council tax are anticipated to continue to meet the shortfall in funding for 2015/16, but as the grant element is not broken down it is difficult to quantify this).

ii.     Nearly every household affected by the removal of the spare room subsidy have been visited by officers. As a result of the Housing Benefit RSRS changes, it is understood that 30 households had moved and 32 had agreed to mutual exchanges.

iii.   The DWP interim report refers to rent arrears rising between October 2013 and April 2014 by 16%. This is total arrears (for all reasons) held by social landlords and the report emphasises that the cause is uncertain and cannot be directly attributed to RSRS.

iv.   City Homes arrears as a percentage of the collectable debt were as follows: 2.35% (2012/13), 2.08% (2013/14) and 1.89% at week 16 (2014/15).

v.    The current level of City Homes rent arrears attributed to RSRS is approximately 5% of the total rental arrears.

vi.   Details on the number of households with children of an age soon to be requiring separate bedrooms was held by Housing Benefit officers and is a consideration when awarding Discretionary Housing Payments (DHP).

vii. £97,819 of DHP was paid during 2014/15 compared to £66,000 in 2013/14. However it was difficult to compare these figures as there are long-term more awards being made during 2014/15, which has front loaded expenditure.

viii.                   It is not anticipated that the Council would exceed its DHP funds for 2014/15.

The Scrutiny Committee considered the recommendations and endorsed them unanimously.

The Executive Councillor approved the recommendations.

Conflicts of Interest Declared by the Executive Councillor (and any Dispensations Granted):

Not applicable.