Question No

Question By

Cabinet Member

Subject

Q8/12-13

Mr R Aldred

Councillors Lowry (Cabinet Member for Finance) and Penberthy (Cabinet Member for Cooperatives and Community Development)

Cuts in Housing Benefit

This labour council have said that they are opposed to the spare room subsidy or bedroom tax, and I would like to know what steps they will be taking to ensure that housing associations do not evict those who are unable to afford the 14-25 per cent cut in Housing Benefit?

Response:

The council has taken a very proactive stance on mitigating the negative impact of the coalition Governments welfare reform changes. It is actively working to limit this, and examples of partnership initiatives to prevent evictions that result from loss of benefit due to under-occupation are:

·       Identifying individual households affected and targeting support:  The council’s Revenues and Benefits Department have identified every household that will receive reduced levels of Housing Benefit, and have shared this information with housing associations.  At a recent partnership meeting, housing association partners assured the local authority that they are proactively contacting each and every affected tenant to offer support.  In addition visiting officers from the local authority and the Department for Works and Pensions will combine to offer specialist affordability/employment related support to households in social housing who are experiencing high levels of loss (due to the combined impact of being subject to the benefit cap)

·        Pre-court eviction prevention panel:  A new initiative about to be piloted with tenants of Devon and Cornwall Homes (DCH) with support provided by Shelter.  The aim of the panel is to ensure that tenants engage with support after they have been issued with a notice seeking possession.  The next step would normally be court proceedings, but support to develop a personal action plan (delivered alongside a realistic view about future housing options) proactively seeks to prevent eviction.  Support will include development of an arrears repayment plan; money management skills; help to address debt issues; income maximisation work and other support required on an individual basis.

·       Support to access Discretionary Housing Payments:  Our partnership forum is specifically working with housing associations to develop access to this limited funding pot for tenants who simply cannot afford the additional amount and would otherwise fall into rent arrears.  Priorities will include affected social tenants where: properties have been substantially adapted around tenant’s disability needs; where a medical condition, behavioural issues or disability mean that it is unsuitable for members of a household to share a room where they would otherwise be expected to; foster carers between placements of children; tenants who are pregnant and for whom the under-occupation issue is therefore short term.  

·       Ensuring that tenancies are affordable, and that tenants can manage their money:  The Housing Options Service have commissioned an additional service from the main Advice Plymouth contract, with the aim of proactively offering a welfare rights/housing affordability check and money management advice to every customer that attends the Housing Options Service asking for advice.  In addition Big Lottery funding in the city will enable new young tenants of social housing to receive financial capability advice and support.  Both of these services seek to ensure that new tenants in social housing are better prepared for their tenancies, and are able to manage their money (and rent payments) much better, avoiding the potential for eviction action to be taken.

·       Giving priority within the social housing register for affected tenants who wish to downsize:   Current social housing tenants have been awarded additional priority within the Devon Home Choice housing register since September 2012.  Their ability to apply for a smaller property from within band ‘B’ significantly increases their chances of bidding successfully for a more affordable property.

·       Increase accessibility of private rented sector:  For tenants in receipt of full housing benefit, a move to an appropriately sized private rented property may be the quickest way to secure an affordable property of a decent standard in an area of their choice. Tenants are often reluctant to move from social housing to houses with the permitted number of bedrooms in the private rented sector, even when this would be more affordable to them.  However, the expansion of Easy Let Scheme (that matches private rented properties with appropriate properties) enables Housing Options staff to offer this as a realistic option.   

·       Work within Housing Associations to encourage tenants to exchange properties:  Housing associations report that applications for mutual exchanges have noticeably increased this year, and they continue to encourage their tenants to access the Home-swapper scheme.  Recently the Devon Home Choice on-line system has been updated to take a more proactive approach to enabling people to easily access information about mutual exchange properties that are being advertised.

·         Housing Delivery: In addition to this proactive approach to prevent evictions, Plymouth City Council is responsible for working with housing associations to secure funding and provide land assets to build new affordable housing and has offered ten new housing sites recently which are planned to deliver 616 new homes of which 43 per cent are new affordable homes.  The council also works proactively with the Plymouth Housing Development Partnership of housing association partners and developers to enable the delivery of new development opportunities and to influence the tenure and mix of new homes so that there are increased opportunities for downsizing (i.e. including a higher proportion of smaller one and two bed units). Our regeneration activities further improve the number and mix of new homes, helping to rebalance housing markets in some of our priority neighbourhoods.

The council will determine our policy on the ‘bedroom tax’ later this afternoon. I hope that you are able to stay and listen to the debate and observe the decision being made.

Question No

Question By

Cabinet Member

Subject

Q9/12-13

Mr D Moore

Councillor Lowry (Cabinet Member for Finance)

Cuts to Council Tax Benefits

What are the council’s total financial reserves and could you use some of these to offset cuts to Council Tax Benefits?

Response:

Total reserve balances are forecast at £31.3m at the end of March 2013, of which £20m are earmarked against future known expenditure and will at some point be spent. This leaves a modest working reserve of 5 per cent or £11m and would be used up within four years if we were to make up the government’s cut in Council Tax Benefit to individuals, thereby leaving the council potentially bankrupt. 

As a council, we have been very aware of the impact of the cuts to funding for Council Tax Benefits and have made our views clear to the government. So whilst we as a council would like to fully fund the reductions, we are faced with the fact that we are unable to do so.

As you will understand, this council will need to make tough choices as we face the reality of ensuring we balance the needs of the people of Plymouth and maintain essential services whilst accepting the reality of central government cuts to our core funding.  Over the four year period to 2015/16 Plymouth City Council will see anticipated funding reductions of over 35 per cent. 

However, the Council Tax Support Scheme we have introduced aims to minimise the impact on individuals as far as possible, and to help further support the most vulnerable residents, we have created an Exceptional Hardship Fund.

Question No

Question By

Cabinet Member

Subject

Q10 /12-13

Mr S Taylor-  Wickenden

Councillor Lowry (Cabinet Member for Finance)

Cuts to Council Tax Benefit

How do you think we can afford to make up for the 25 per cent Council Tax Benefit cut and pay for the 14-25 per cent ‘bedroom tax’ or spare room subsidy when my benefit has only gone up by 1 per cent, a dismal 54p?

Response:

Plymouth has worked hard to minimise the impact of the governments’ cuts to funding and has implemented a Council Tax Support Scheme which aims to achieve this and have introduced an Exceptional Hardship Fund to support the most vulnerable residents.  We are currently preparing to lobby the government in relation the ‘bedroom tax’ over which the council has no direct discretion.

We are working with our social landlords to find ways to support tenants and a Discretionary Housing Fund has been set aside to help residents move to suitable accommodation.  However we recognise that this funding will only help around 17 per cent of those affected.

Knowing your household budget is going to be really important and staff and agencies are working together to help residents work out what they can afford and options available to them.

Question No

Question By

Cabinet Member

Subject

Q11 /12-13

Dr L Alldridge

Councillor Lowry (Cabinet Member for Finance), Councillor Penberthy  (Cabinet Member for Cooperatives and Community Development) and Councillor Williams (Cabinet Member for Children and Young People)

Impact of cuts on Child Poverty

How will these cuts affect child poverty in Plymouth? How will you keep your promise to reduce child poverty in the town?

Response:

How will these cuts affect child poverty in Plymouth?

The National Context

Attempts to tackle child poverty across the country are taking place within an environment of public spending cuts, the level of which has only been seen once since the World War II period.

Families with children are shouldering a disproportionate burden as a result of the government’s austerity cuts.

As a result of the changes being introduced between January 2011 and April 2014, households with children are set to lose more than pensioner households and working-age households without children.

This disparity is largely driven by a package of benefit and tax credit reforms which are disproportionately affecting our poorest households (e.g. non-working lone parents), households with three or more children, households with children under five years and households living in private rented accommodation.

Our poorest families face a future of disproportionately lower incomes, increased pressure to take work or increase their hours, continuing stigmatisation of dependency, and families being blamed for their poverty rather than the nature and structures of society being examined.

The Local Context

Plymouth has high levels of deprivation with a number of neighbourhoods among some of the most deprived in the country. Plymouth is just above the bottom 20 per cent of local authorities for levels of deprivation and is most deprived in the domains of income and employment scale.

One in five Plymouth children are living in poverty with one Local Super Output Area alone having 57.6 per cent of children in poverty. Plymouth families earning less than £251 per week are classed as living in poverty. This equates to 11,560 children, of which 10,190 are aged under 16.

Overall, changes to the benefits and tax credits system is estimated to impact 20 per cent of the city’s population, disproportionately affecting some of our most vulnerable families.

Austerity cuts at a national level are also impacting local government. We are being forced to take financial sums out of our spend while endeavouring to ensure that this doesn’t affect our most vulnerable households.

While at a local level we are working hard to reduce our child poverty levels, it appears that current government policy is making this difficult for us to achieve.

How will you keep your promise to reduce child poverty in the town?

Child Poverty in Plymouth is being taken seriously.

Plymouth City Council expects to publish its three year Child Poverty Strategy and Action Plan at the end of May 2013. This strategy will present how Plymouth aims to tackle the causes and impact of child poverty, while also acknowledging the limits and challenges presented by the current economic and social environment. The breadth of work already being undertaken to tackle child poverty across the city is also reflected in the strategy.

This work has been overseen by a Child Poverty Cross Party Working Group which also oversaw development of the Child Poverty Needs Assessment. All documents can be accessed at via the dedicated child poverty page on the Plymouth City Council website.

Question No

Question By

Cabinet Member

Subject

Q12 /12-13

Mr C Willcox

Councillor Lowry (Cabinet Member for Finance)

Council tax enforcement

Can the council assure tenants that they will not be issuing liability orders for non- payment of council tax if they genuinely cannot afford to pay for the 25 per cent cut in Council Tax Benefit and will they be hiring bailiffs to evict people if they accrue debts?

Response:

We worked hard to limit the impact of the Council Tax Benefit cuts and, following public consultation, implemented a new Council Tax Support Scheme from 1April 2013. We wrote to everyone who is affected before the changes were implemented.

Our overriding aim is to work with customers to help them pay.  Various payment options are available and payment plans can be agreed with us.  However, if the instalments or payment plan that is agreed with the council is not maintained then appropriate further recovery action will be taken. This could include issuing a liability order for non-payment of council tax. This will allow us to arrange an attachment to benefits rather than referring to our bailiff where possible.

Our ‘Money Advice…..’ booklet includes details of the recent changes and offers help and advice for people on low incomes.

Question No

Question By

Cabinet Member

Subject

Q13 /12-13

Mr R Davey

Councillor Lowry (Cabinet Member for Finance) and Penberthy  (Cabinet Member for Cooperatives and Community Development)

Impact of welfare reforms on rent arrears and repossessions

In Torfaen, trial-version welfare reforms (including the ‘bedroom tax’ and direct payment of housing benefit) increased rent arrears sevenfold. What impact do you expect these reforms to have on the spread and severity of rent arrears in Plymouth, and on the cost to housing associations of pursuing arrears and repossessions?

Response:

The council is aware that the demonstration projects have seen rent arrears increase as a consequence of both ‘bedroom tax’ and Universal Credit. For that reason the council believes that it is possible that this will happen in Plymouth. We are unable to forecast the level of any potential rise. Instead the council is concentrating on trying to mitigate the changes and to support registered social landlords to minimise the impact.

Examples of partnership initiatives to prevent evictions that result from loss of benefit due to under-occupation are:

·       Identifying individual households affected and targeting support:  The council’s Revenues and Benefits Department have identified every household that will receive reduced levels of Housing Benefit, and have shared this information with housing associations.  At a recent partnership meeting, housing association partner’s assured the local authority that they are proactively contacting each and every affected tenant to offer support.  In addition visiting officers from the local authority and the Department for Works and Pensions will combine to offer specialist affordability/employment related support to households in social housing who are experiencing high levels of loss (due to the combined impact of being subject to the benefit cap)

·        Pre-court eviction prevention panel:  A new initiative about to be piloted with tenants of Devon and Cornwall Homes (DCH) with support provided by Shelter.  The aim of the panel is to ensure that tenants engage with support after they have been issued with a notice seeking possession.  The next step would normally be court proceedings, but support to develop a personal action plan (delivered alongside a realistic view about future housing options) proactively seeks to prevent eviction.  Support will include development of an arrears repayment plan; money management skills; help to address debt issues; income maximisation work and other support required on an individual basis.

·       Support to access Discretionary Housing Payments:  Our partnership forum is specifically working with housing associations to develop access to this limited funding pot for tenants who simply cannot afford the additional amount and would otherwise fall into rent arrears.  Priorities will include affected social tenants where: properties have been substantially adapted around tenant’s disability needs; where a medical condition, behavioural issues or disability mean that it is unsuitable for members of a household to share a room where they would otherwise be expected to; foster carers between placements of children; tenants who are pregnant and for whom the under-occupation issue is therefore short term.  

·       Ensuring that tenancies are affordable, and that tenants can manage their money:  The Housing Options Service have commissioned an additional service from the main Advice Plymouth contract, with the aim of proactively offering a welfare rights/housing affordability check and money management advice to every customer that attends the Housing Options Service asking for advice.  In addition Big Lottery funding in the city will enable new young tenants of social housing to receive financial capability advice and support.  Both of these services seek to ensure that new tenants in social housing are better prepared for their tenancies, and are able to manage their money (and rent payments) much better, avoiding the potential for eviction action to be taken.

·       Giving priority within the social housing register for affected tenants who wish to downsize:   Current social housing tenants have been awarded additional priority within the Devon Home Choice housing register since September 2012.  Their ability to apply for a smaller property from within band ‘B’ significantly increases their chances of bidding successfully for a more affordable property.

·       Increase accessibility of private rented sector:  For tenants in receipt of full housing benefit, a move to an appropriately sized private rented property may be the quickest way to secure an affordable property of a decent standard in an area of their choice. Tenants are often reluctant to move from social housing to houses with the permitted number of bedrooms in the private rented sector, even when this would be more affordable to them.  However, the expansion of Easy Let scheme (that matches private rented properties with appropriate properties) enables Housing Options staff to offer this as a realistic option. 

·       Work within Housing Associations to encourage tenants to exchange properties:  Housing associations report that applications for mutual exchanges have noticeably increased this year, and they continue to encourage their tenants to access the Home-swapper Scheme.  Recently the Devon Home Choice on-line system has been updated to take a more proactive approach to enabling people to easily access information about mutual exchange properties that are being advertised.

·         Housing Delivery: In addition to this proactive approach to prevent evictions, Plymouth City Council is responsible for working with housing associations to secure funding and provide land assets to build new affordable housing and has offered ten new housing sites recently which are planned to deliver 616 new homes of which 43 per cent are new affordable homes.  The Council also works proactively with the Plymouth Housing Development Partnership of Housing Association partner’s and developers to enable the delivery of new development opportunities and to influence the tenure and mix of new homes so that there are increased opportunities for downsizing (i.e. including a higher proportion of smaller one and two bed units). Our regeneration activities further improve the number and mix of new homes, helping to rebalance housing markets in some of our priority neighbourhoods.

The council will determine our policy on the ‘bedroom tax’ later this afternoon. I hope that you are able to stay and listen to the debate and observe the decision being made.

Question No

Question By

Cabinet Member

Subject

Q14 /12-13

Mr G Fidler

Councillor Lowry (Cabinet Member for Finance)

Cuts to Council Tax Benefit

Due to the cuts to the Council Tax Benefit, how much extra council tax will people affected in Plymouth have to pay? Please provide examples.

Response:

The new Council Tax Reduction Scheme will reduce the amount of support people of working age receive to help pay their council tax bill. From April that amount of support has been reduced to a maximum of 75 per cent. This means all working age claimants who qualify for Council Tax Support will have to pay at least 25 per cent of the yearly council tax charge. 

The majority of Plymouth council tax payers are in Band A and Band B properties and these are the indicative amounts of council tax a household will be expected to pay, based on two adults in the household or a single person, with a single person discount from April 2013.

Band A full annual charge is £1005.24. Paying at least 25 per cent of this annual charge will mean a minimum annual charge of £251.31, resulting in a minimum weekly payment of £4.83 based on 2 adults in the household. If a single person discount of 25 per cent applies this will reduce the minimum weekly payment to £3.62.

Band B full annual charge is £1172.79. Paying at least 25 per cent of this annual charge will mean a minimum annual charge of £293.20, resulting in a minimum weekly payment of £5.64 based on two adults in the household. If a single person discount of 25 per cent applies this will reduce the minimum weekly payment to £4.23.

Further restrictions have been brought in for those working age customers who are in a Band F property or above.  The maximum amount of Council Tax Support will be 75 per cent of the annual charge for a Band E property, this is £1382.20. As a minimum, customers in a Band F property or above will have to pay the difference between the £1382.20 and their full annual charge.

The table below indicates the amount of council tax a household will be expected to pay based on two adults in the household and a single person (SPD) from April 2013.