Agenda item

L Warden updated on the status with Universal Credit in Dacorum setting out the likely impact and the steps we are taking to mitigate the potential risks.  A lot of the information is unknown and we are constantly receiving new instructions which makes establishing the risks more difficult.  We have been talking with DWP to try and build relationships, with other authorities to try to learn from what they have done and also with CAB.  There is also an internal Working Group which N Howcutt Chairs.  We are continuing to do what we can but it’s difficult with so much uncertainty.

Cllr Taylor  raised concerns about the level of debt that has been reported in the paper.  LW advised that this is not definite because it’s all unknown, but it could be correct on a worst case scenario basis and we would expect this to decrease once more details are known.  The other authorities we have contacted who are more advanced with the roll out of Universal Credit debt levels are less than expected but we have nothing to model this on because we do not have any data.

Cllr Taylor asked if he could take comfort that it is a worst case scenario and officers are working to address this.  N Howcutt advised we have a very small number which is a very different group of demographic than we would expect by the full roll out.  We don’t know when the full roll out will be completed, we also know that any debt issues that other organisations have had could be very different because Universal Credit is constantly changing. 

N Howcutt confirmed that there is a line people can call if they’ve got problems which is now Freephone, it wasn’t before, so people will raise their issues earlier than they would before.  We don’t have any real indicator what rent debt levels people have and how that will impact with Dacorum population demographic.  We don’t really have any clear understanding of how it will be rolled out and how quickly, so if we rolled out everyone at the same time there would be a larger debt arrears than if you did it slowly.

N Howcutt mentioned that the delay of payments was more when they first started on Universal Credit and other concerns around landlords not accepting tenants on Universal Credit were a bigger issue previously than they potentially are now, since there is more legislation to stop them doing that.  It’s a moving feast, we don’t know what the liability is, we believe there will be a liability and increased rent arrears, we’ve allowed for that in the HRA Business Plan.  Until we have more definitive understanding of the volume, the clients and demographics we will not have a better understanding of modelling it.

N Howcutt explained that the Working Group is meeting every three weeks and every time we have an update from Central Government we will feed that into our models.  We will bring another paper back in the next few months once we have more certainty.

Cllr Tindall thanked Officers for an extremely good and clear report, which details exactly what we are dealing with.

Cllr Tindall asked if there could be protocol on how we help the residents.  There is an enormous financial risk to us and I think one of the best ways to mitigate this is to spend to save, which is to establish a protocol which recognises that two of the difficulties facing residents.  The difficulty of form filling where it clearly half way through filling in the form it crashes and there’s also the five week delay, which is difficult for people who don’t have recourse to any surplus funds, where their living week to week.  This means they will be five weeks behind with their rent immediately.  We are not able to use DHP can we set up arrangements with the Credit Union, wouldn’t advise we get these people in further debt but this could help residents.  We have a duty as a Council to help the residents out as much as possible to steer them through this.

Cllr Tindall also recommended Universal Credit as an ideal subject for Member Development and I would suggest that all 51 Councillors attend.

L Warden highlighted that other authorities had provided a co-location triage for residents and that there Universal Support funding which has been provided to the CAB to help with budgeting for people affected. Additionally we have funding to help people make a claim as it’s all online, we are working with the CAB and Library, also we are working with our tenants to encourage them to get online.

S Potton said that DHP is exactly as it’s written in the report, you just can’t claim it, but you can get advance of your Universal Credit if you are going to struggle.

Cllr Tindall asked about the application.  S Potton advised that he is not aware of this as it would be administered by DWP.  Cllr Tindall explained this is why we need a joint team and that it should help extract the maximum amount of money from the DWP for introducing this system.

N Howcutt said that section 8 of the report highlights what we are trying to do including the partnerships.  It’s not just the Council affected by this, the Job Centre is also affected. The DWP want this to be as successful as possible so they will work in partnership with local authorities as much as they can.  We will work with them as best we can.  The lack information is what prevents us from truly targeting the individuals that will impacted.

Cllr Tindall suggested that we contacted residents.  N Howcutt advised this had caused significant difficulties for other authorities and advised that a more targeted approach would be more useful.

Cllr Banks asked if we could offer tenants the ability to overpay a little additional rent on a regular basis so that they build up a credit to help with the five-week delay.  L Warden advised this is already being encouraged but unfortunately there was not a lot of people who are able to do this as they are on a limited income.

Cllr D Collins mentioned that Chart 5.2 indicates the roll out process and that it would be difficult for some people to get to Aylesbury or Luton.  L Warden advised that the DWP had different boundaries to us, but there had been some changes and she will email them out.

Action: L Warden

Cllr Douris mentioned that Great Gaddesden was missing in Chart 5.2.  Also he believed the Library would be very happy to help people

The Chairman expressed concerns about private sector landlords debt and landlords refusing to accept tenants who are claiming Universal Credit.  S.21 notices have been served on tenants to end tenancy in an expectation of arrears rather than actual arrears, we should look at this and speak to other authorities about the percentage of Landlords affected as this could cause problems finding accommodation for our residents.  He also wants clarification on the legal situation with S.21.

Action: L Warden