Agenda item

Brian Daly, Housing Assessment Manager, outlined a report to advise Members of the impact of the Government’s current and proposed changes to the housing benefit system and how the impact of these changes was being addressed.

The Committee noted that Housing demand in Slough had increased by 30% in the past 18 months and the Government’s welfare reforms would likely lead to a greater demand for the Council’s services. There was a concern that more people would move to Slough where rents were predicted to remain more affordable and there was evidence that some London local authorities were already seeking to secure housing from Slough landlords.

The Officer discussed the financial implications of the reform for benefit claimants. Nationally, households would lose on average £12 per week and it was thought that in Slough, some would be faced with a reduction of £180 per week due to the abolishing of the 5 bedroom rate and the LHA rates being set at the 30^th percentile from the median as it was.  The reforms presented 2 critical issues: the potential increase in housing need and poverty and the possible reduction in the supply of privately rented accommodation (the Council’s main tool for preventing homelessness).

The Committee noted the Government changes to the Local Housing Allowance (LHA) and the resulting implications.  The Officer also discussed aspects of housing supply and demand in Slough and advised that the demand for social housing already outstripped supply by 11:1. It was noted that 100 new applicants had been registered per month since the start of 2011 and that  6,645 households were on the waiting list.  Homelessness approaches had increased at a very fast rate, with numbers approaching highs of 10 years ago. This had increased demand on temporary accommodation and within  the private rented sector in Slough. Homelessness had increased from around 21 approaches per month in 2009 to 34 per month this year so far which equated to an increase of 62%.

The Officer advised that in terms of rented accommodation, London Boroughs would be able to make significant savings by offering large incentives to acquire housing stock in close proximity to London and there was evidence that this was happening. There were concerns that there could be increases in child poverty and children living in overcrowded accommodation for longer. Also it was likely that single people on low incomes would be more likely to live in transient, unsettled shared housing and a culture of rough sleeping in could result in Slough.

The Committee noted the detail of Discretionary Housing Payments (DHP) and a number of ways in which the impact of the benefit changes would be mitigated including the creation of an Empty Homes Strategy.  The Officer discussed the practice of other Authorities placing their clients into temporary housing in Slough and the implications of this. It was noted that letters had been sent to the relevant authorities reminding them of their duty to inform Slough BC whenever this happened and to take necessary steps to return the applicant to their own borough.

In the ensuing debate Members raised a number of comments and questions of detail.  The Officer confirmed that in relation to the Single Accommodation Rate, there were a number of exceptions to the rule whereby a person under the age of 35 yrs could only claim £73.85 each week and it was agreed that the Officers would forward further details to Committee Members.  Members discussed the current position regarding DHP and the Officer advised that the increase in the allocation of money from the previous year would not cover requirements because 286 people under the age of 35 had been affected. It was confirmed that the Dept of work and Pensions would not allocate more money and the Council would have to find any additional funds needed.

The Committee was concerned that other Authorities were repeatedly placing people in emergency private rented accommodation in Slough and appeared not to be adhering to the required procedures. It was agreed that this concern should be addressed by Cabinet.

Resolved-

(a)  That the report be noted.

(b)  That Cabinet be recommended to examine the current position regarding the placement by other Local Authorities of individuals into emergency private rented accommodation within Slough, and the resulting impact on services.