Agenda item

This is the final report of the in-depth review that has considered the impact of the Government’s Welfare Reforms.

Discussion:

The Chairman of the Welfare Reform Task Group introduced the Task Group report, which had considered the impact of the Government’s Welfare Reforms.

The Committee was referred to the work the Council was already undertaking to inform and assist residents, which had been positively highlighted by partner organisations during the evidence sessions. The Committee was also advised that, whilst a smaller number of Medway residents than originally anticipated had been impacted, those households affected had seen a significant reduction in their household incomes. Such households would need to be supported. The importance of the Officer Welfare Reform Group as the principal co-ordinating vehicle was stressed, as were regular reports to the Business Support Overview and Scrutiny Committee to enable the impact to be monitored carefully and remedial action taken.

The Committee discussed the contents of the Task Group Report, which included:

·        Food banks, in particular a new food bank in Rochester East Ward, and the framework for distributing food bank vouchers; especially to families during the school holidays, when schools (who distribute vouchers) are closed.

It was noted that the Task Group had spoken with Medway Food Bank, which operated as part of the Trussell Trust’s national network and was supported by a network of churches and other front-line organisations who assessed need and issued up to a maximum of three food bank vouchers. It was requested that officers consider the impact of school closures and distribution of vouchers further.

·        Universal Credit and the requirement for claimants (in most cases) to make and maintain their claim online.

It was noted that nationally, further lessons would be learnt from the Department for Work and Pensions pilot projects. The Task Group had also recommended that the Welfare Reform Officers Working Group reflect on digital access, use and support across Medway and play a role in the developing digital inclusion workstreams.

·        The Council’s changing role with the end of Housing Benefit assessment and payments made by local authority staff under Universal Credit.

Members were advised that the Council would still need to maintain the Council Tax Reduction (CTR) Scheme and Universal Credit would only be applied to working age claimants in the first instance.

·        Personal Independence Payment and Employment and Support Allowance and the delays and growing backlog of claims by the external provider (ATOS), which are impacting negatively on claimants.

It was noted that representations would be made to the Secretary of State for Work and Pensions and Secretary of State for Communities and Local Government concerning this.

·        The cessation of Government funding for the Local Welfare Provision Scheme

It was noted that the Task Group had recommended that a letter be sent requesting that the Government continue to provide an identifiable local welfare provision grant to local government from 2015/2016 onwards.

·        The recommended Stakeholder event explaining the Welfare Reforms and the schemes in operation in Medway, and the opportunity this provided to gain further feedback on the Council’s response to the Welfare Reforms.

·        The need for claimants to open bank accounts, which would be considered further by the Welfare Reform Officers Working Group.

The Committee commended the Task Group and the supporting Council officers on the development of the Task Group report.

Decisions:

The Business Support Overview and Scrutiny Committee agreed that the Welfare Reform review document be referred to Cabinet on 2 September 2014 for consideration, together with the following recommendations:

(a)        That the Welfare Reform Officers Working Group continues to lead the Medway response to Welfare Reform and to work to develop communication between the Council and other agencies, with the objective of providing the customer with the single journey through a coordinated response. This should include:

(i)                a Stakeholder event explaining the Welfare Reforms and the schemes in operation in Medway. This event should enable organisations to showcase their response to the reforms;

(ii)              the development of a booklet (in print and online) for all affected residents, signposting the various organisations providing support;

(iii)            a briefing for all Members on the Welfare Reforms.

(b)                    That the Welfare Reform Officers Working Group undertakes further work to improve communication channels for potentially vulnerable claimants of discretionary payments, who may find themselves excluded. This should incorporate:

(i)                 any positive learning from existing cross agency partnerships, such as Street Weeks and Troubled Families;

(ii)               a review of Council systems, with a view to highlighting vulnerable claimants, especially where there may be safeguarding issues, and the potential need for ‘personal intervention’ in the debt recovery process;

(iii)             undertaking a Diversity Impact Assessment to understand the cumulative impact of the Welfare Reforms including the impact on groups with protected characteristics and to identify the necessary actions to take forward.

(c)                     That the Welfare Reform Officers Working Group review the Council’s corporate debt policy, considering the feasibility of encouraging the “Warm Transfer” of clients to organisations such as StepChange, the Citizens Advice Bureau and Christians Against Poverty and stressing the availability of advice agencies at the later stages of the debt recovery process.

(d)                    That the Welfare Reform Officers Working Group continue until after the introduction of Universal Credit and that the Corporate Management Team reviews its membership, with a view to ensuring appropriate representation at the relevant time and enhancing its collaborative work with partners.

(e)                    That the Welfare Reform Officers Working Group ensures that it continues to track and respond to the emerging requirements of Universal Credit and Welfare Reforms, reporting on progress to the Business Support Overview and Scrutiny Committee every 6 months.

(f)                       That the Council write to the Secretary of State for Work and Pensions and Secretary of State for Communities and Local Government, copying in the Chairman of the Local Government Association, highlighting the:

(i)           recognised delays and impact of the assessment phases of Employment and Support Allowance and Personal Independence Payment processes;

(ii)         concerns expressed during the evidence sessions as to direct payments;

(iii)       benefits of a localised Local Welfare Assistance Fund and stressing the need for Central Government to make alternative funding provision for this to continue.

(g)                    That the Welfare Reform Officers Working Group reflects on digital access, use and support across Medway. This should give particular focus on:

(i)           assisting in the development of a Corporate Customer Access Strategy and the development of an assisted digital offer;

(ii)         linking in with community networks and considering the potential role of Digital Ambassadors (led by partners and the wider community);

(iii)       learning from research and pilot projects that are being undertaken both locally and nationally to establish barriers and enablers to digital access and use;

(iv)       the evolution of community hubs and considering the potential for privacy for claimants at Council access points.