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37 Welfare Reform and the Impact on Rent Arrears. PDF 285 KB
Minutes:
Matter for
Decision
Since
April 2013 City Council tenants of working age have experienced a reduction in
Housing Benefit if they are deemed to have a spare bedroom. Originally nearly
600 households were identified as falling into this category. This has now
reduced to less than 500 due to re assessment and exemptions. Rent arrears for
all current tenants at the end of August 2013 amount to just over £750,000
compared with £800,000 twelve months ago. The rent arrears due to the Housing
Benefit Social Size Criteria since April 2013 amount to £29,271 after five
months.
Discretionary Housing Payments (DHP) have been applied for by 158
tenants and 27 of those have been refused or had their bedroom requirements
revised so that DHP was no longer needed. DHP may be refused if the tenant has
too much capital or sufficient income. Reasons to award DHP may be where the
property has disabled adaptations or the tenant is actively bidding to move on
Homelink or seeking employment
Decision of Executive Councillor for Housing
i.
Acknowledged the
impact of the Welfare Reforms and the support given to tenants affected by the
changes.
ii.
Instructed
officers to continue to assist tenants in rent arrears and only seek eviction
through the Court as a last resort.
iii.
Instructed
officers to introduce a Local Lettings Policy in April 2014 to give priority to
tenants wanting to downsize as a result of the Housing Benefit Social Size
Criteria
Reason for the
Decision
As set out in the
Officer’s report.
Any Alternative
Options Considered and Rejected
Not applicable.
Scrutiny Considerations
The Committee
received a report from the Area Housing Manager.
The Committee made the following comments in response to the report:
(i)
Thanks should be passed to those staff who had
worked hard to cushion these changes.
(ii)
Expressed
concern regarding the impact of changes to benefit payments that may affect
tenants and the impact that this would have on rent payment.
(iii)
Asked if
figures could be produced to show the result on rent arrears when the changes
to the universal credit system came into force.
(iv)
Questioned how many of those tenants in arrears
were disabled as this was not stated in the report.
(v)
Queried how those tenants affected by the ‘spare
room subsidy’ or more commonly known as the ‘bedroom tax’ would be identified
and how they would be treated.
The Committee:
Councillor Blencowe proposed that the recommendation 2.2 of the
Officer’s report became 2.2 A:
·
To
instruct officers to continue to assist tenants in rent arrears and only seek
eviction through the Court as a last resort.
The Committee resolved
unanimously to agree to the numbering change.
Councillor Blencowe then proposed that paragraph 3.5 of the Officer’s
report became an additional recommendation 2.2 B (replacement underlined
and original struck through):
·
Eviction will not
be progressed for a tenant in rent arrears, which solely relate to the under
occupation reduction in Housing Benefit, when all any of the
following criteria are met:
-
Where the tenant
has applied for rehousing and is making active reasonable bids.
-
Where the tenant
has applied for DHP.
-
Where other
tenancy conditions (such as ASB) have not been seriously breached.
The Committee resolved
unanimously to agree to this additional recommendation.
The Committee resolved
unanimously to endorse the amendment and additional recommendation.
The Executive Councillor approved the recommendations.
Conflicts of Interest
Declared by the Executive Councillor (and any Dispensations Granted)
No conflicts of interest
were declared by the Executive Councillor.