Agenda item

The Landlord Services Manager’s report set out the latest information on the roll out of Universal Credit (UC) and described the actions being taken to mitigate, as far as possible, the potential loss to Housing Revenue Account (HRA) income.

Universal Credit was an entirely new benefit and the key features were outlined in the report.  It would only affect working age people (18 years to 60.5 years).  UC would be paid as a monthly payment per household, direct into a bank account.  This amount would include the housing element.  There was provision for housing providers to apply for the housing element of UC to be paid to them direct at the start of the claim if it could be proved that the tenant fell into one or more of a number of vulnerability categories.

There was a programme for UC rollout across the region.  UC would go live for tenants with new claims with a Honiton postcode on 4 July 2018, and for those with Exeter postcodes on 26 September 2018.

Concerns about UC as a social landlord included:

·                tenants would have to arrange with the landlord to start paying their own rent.

·                some individuals may not be good at prioritising their bills or managing a budget and could easily get into debt.

·                it could have a serious effect on rental income.

·                potentially more people could be evicted for rent arrears, with the social landlord receiving more homeless applications, and finding themselves in a position where as a social landlord they have to do more with less income.

The Landlord Services Manager explained that careful preparations were underway, with a proactive approach being taken.  With the help of the Benefits team tenants who may need help should they claim UC were being identified.  Staff training had also been arranged.  A series of 12 customer drop-ins had been set up across the district to explain to tenants what was happening and how the Council could help.

It was clear that staff needed to work much more closely and proactively with their customers if they were to help them manage their income effectively.  The vulnerable in particular would require intensive support and close working across teams to achieve this.  This greater demand for support was larger than the current resources available.  It was estimated that an extra two members of staff would be required initially. Housing Benefits colleagues with expertise in this area would be facing a reduced workload and some free capacity.  It was proposed that the equivalent of two full time members of staff from Housing Benefits support the Housing Service.  This would be reviewed after a period when it was possible to assess the impact of UC on tenants.

RECOMMENDED: 

1.         that Cabinet note the report on the preparations for the further roll out of Universal Credit during 2018/19.

2.         that Cabinet agree that the council should invest in supporting tenants in order to mitigate the effects of Universal Credit on their own wellbeing as well as the impact on the Housing Revenue Account.

3.         that Cabinet agree that two members of staff from Housing Benefits support the  Housing Service through the rollout, with staff capacity required to manage the change being reassessed later in the financial year.