Agenda item

To consider the attached report of the Director of Customer Services (East Kent Housing).

The Director of Customer Services (East Kent Housing) presented an update on the impact of Universal Credit on Dover District Council tenants.

Universal Credit was a monthly benefit that replaced six existing benefits:

·         Child Tax Credit

·         Housing Benefit

·         Income Support

·         income-based Jobseeker’s Allowance (JSA)

·         income-related Employment and Support Allowance (ESA)

·         Working Tax Credit

·          

Implementation of Universal Credit commenced in the Dover district in February 2016 and consisted of three phases. The initial phase affected new claims relating to single people on low income or unemployed (‘simple singles’). The second phase was implemented in May 2017 which included new claims made by couples, families and those whose claim was subject to revision because of a change in their circumstances. The final phase was expected to take place in 2019 when all current claimants not on Universal Credit would be switched over.

Universal Credit was administered by the Department for Work and Pensions and not Dover District Council and those on Universal Credit were required to access services on-line.

It took 5 – 6 weeks for a new claim to be assessed and the first payment of Universal Credit to be made. While the switch from weekly payments in advance to monthly payments had increased the level of arrears for tenants this had evened out over time for most people and East Kent Housing continued to monitor the situation.

The first two phases of Universal Credit had seen a rise in the level of arrears for those tenants affected and there were currently 173 cases of tenants in arrears resulting from the switch to Universal Credit.

East Kent Housing had seen an increase in customer contacts over Universal Credit and was working with partners to try and mitigate its impact, though its scope to do so was limited. However, there were cases where it had been difficult to engage with tenants in order to assist them in undertaking the necessary action to address their situations.

East Kent Housing had implemented a Welfare Reform Strategy to manage the impact of Universal Credit on both itself and tenants. This included:

·         The administration required for Universal Credit accounts was greater than for Housing Benefit claims, and included an increased need for case revision and amendment to payments, along with additional support and advice for tenants for these arrangements.

·         There would be an increased need for budgeting advice and assistance particularly for the increasing number of vulnerable tenants. East Kent Housing had sent information to affected tenants to raise awareness of the changes.

·         East Kent Housing had relaxed its formal rent collection regime triggers where arrears were due solely to the delay in first Universal Credit payment.

·         An increased level of customer contact from those seeking advice, clarification and assistance. An 0300 number had been set-up to provide advice and East Kent Housing was also working with the Citizens Advice Bureau.

East Kent Housing had also expressed its concerns over the impact of the Universal Credit rollout to the Department for Work and Pensions.

Members were advised that while at this stage East Kent Housing were unable to provide information on the cost of managing the impact of Universal Credit on its finances it was currently dealing with the matter within its existing resources. There had however been a number of one off costs in learning the Universal Credit system.

In addition to East Kent Housing tenants, the change to Universal Credit also affected tenants of private landlords.

Members agreed to maintain a watching brief on the impact of Universal Credit.

RESOLVED: That the update be noted.

(Councillor S C Manion declared a Disclosable Pecuniary Interest (DPI) in the matter by reason of his being a private landlord and withdrew from the meeting for the consideration of the remainder of the item of business.)