Agenda item

The Committee were provided with an update regarding the implementation of Universal Credit and any potential implications for local residents. Members were reminded that the aim of universal credit was to simplify a complex system of benefits by bringing them together in a single system for both in work benefits and out of work benefits for all working age applicants.

Universal Credit is seen by the government as a key part of a package of welfare reforms supporting a more dynamic and flexible labour market by removing barriers to work allowing individuals to get back into and progress in work.

One of the overarching aims stated by the Department of Work and Pensions (DWP) is making work pay and they are doing this via Universal Credit by providing:

–  more help for low income working families

–  helping customers keep more of what they earn

–  improving incentives to increase hours of work

–  simplified system which will make moving to work feel less ‘risky’

Universal Credit was introduced in April 2013 in a limited number of Local Authorities and is gradually being rolled out across the country; Slough’s implementation went live in September 2015.  It encompasses all new benefit claims for working age single people and couples without children. The intention is that Universal Credit will be rolled out further between now and 2021. The next phase will be for all new claims from all working age benefit recipients to be made for Universal Credit by July 2018. Although an exact date for Slough to go ‘live’ was unknown at present, following recent correspondence with the DWP it was anticipated that it would be after December 2016.

It was explained that if an individual made a claim for Universal Credit and had rent costs either to a private landlord or to the Council, their rent costs would be calculated and paid within their Universal Credit. Similarly, if a customer made a claim for Universal Credit and they also paid Council Tax they were directed to the Slough Borough Council web site and requested to make a separate claim for Council Tax Support.

Members were informed that there were no formal statistics for Universal Credit claims in Slough as Universal Credit was a national benefit and only national figures were published. However, officers had maintained records of the contacts made regarding Universal Credit and the issues raised. Between 28 September 2015 and 12^th February 2016, there had been 70 individual contacts regarding Universal Credit claims, this could be any forms of contact in relation to their claim. It was therefore assumed that at least 70 people had claimed Universal Credit in Slough. There were 12 council tenants and 11 private tenants who were currently in receipt of universal credit. On the basis that there were 23 claims known to the Council for help with rent payments, it was assumed that there would be 23 claims for Council Tax Support. At this stage however there were only 6 council tax claims. It was noted that this may be because the customers are living in houses in multiple occupation (HMO) but could also be because they are unaware that a separate claim has to be made. The Council, in partnership with arvato, was in the process of contacting these customers to see if they wanted to claim Council Tax Support.  Without a valid claim for council tax support it was unlikely that they would be able to pay their council tax, which would adversely impact the councils Council tax collection rates.

Committee Members queried what support was offered to individuals to assist them both in claiming Universal Credit and managing their money better; given that payments were being made monthly in arrears. It was explained that the DWP had introduced a Personal Budgeting Support (PBS) service, providing customers with advice and support in managing their finances. It was noted that to date Slough had not received any referrals for PBS from the DWP. This was a similar situation for many other Council’s nationally who are live on Universal Credit. It was brought to Members attention that the issue had been raised with the liaison officer in the DWP, who was actively trying to ensure that their staff made referrals.  In addition a nationwide initiative had commenced to remind all DWP advisors to make referrals for PBS. 

Resolved – That details of the report be noted.

(Vice Chair, Councillor Strutton, in the Chair during consideration of the following item)