The scope of Universal Credit has been gradually expanded since it was first introduced, with different household types falling within its scope over time. In the Bradford District, there are now more households in receipt of Universal Credit than the benefits it has replaced.

The DWP forecast that the roll-out of Universal Credit for working-age claimants, nationally, will be completed by March 2025.

The Strategic Director Corporate Resources will submit a report (Document “AA”) which examines the progress of, and future plans for, the roll out of Universal Credit, the impact of Covid 19, and the arrangements in place to support residents.

Recommended –

That Corporate Overview and Scrutiny Committee notes the progress being made in the roll-out of Universal Credit in the District.

(Martin Stubbs - 01274 432056)

The Strategic Director, Corporate Services, submitted a report, (Document “AA”) which examined the progress of, and future plans for, the roll out of Universal Credit, the impact of COVID 19 and the arrangements in place in the district to support residents. 

It was explained that the scope of Universal Credit (UC) had been gradually expanded since it was first introduced with different household types falling within its scope over time. In the Bradford District there were now more households in receipt of Universal Credit than the benefits it had replaced.

The Department for Work and Pensions (DWP) had forecast that the roll-out of UC for working-age claimants nationally would be completed by March 2025.

Members questioned how the risks to residents of migrating to UC would be managed.  In response it was clarified that there was the potential for some individuals to lose an element of benefit when choosing to migrate to UC and they were advised to seek financial advice.

The impact of the removal of the £20 uplift payment was questioned. Members were reminded that the uplift was for support during the pandemic. Government measures introduced to reduce the impact of removal were reported including decreased tapers for that reduction. 

It was questioned if there had been any data collated to assess the impact of the removal on residents and it was clarified that initial analysis of the likely impact of the pandemic had been produced.  It was acknowledged that the removal of £20 per week resulted in a £1,000 loss per annum and it was reported that there were now 64,000 claimants of which 40,000 were receiving Universal Credit and two thirds of those were not in employment.  It was reported that food bank usage had increased by 50% and with increased energy costs a lot of people were considerably worse off.  In addition, benefits had been calculated on a likely three per cent inflation rise, however, the Bank of England were predicting a seven point five increase. It was agreed to provide Members with the latest data available. 

It was explained that there was some Government support available to people who were struggling and the Department for Work and Pensions had seen an increase in applications for Government funding.  The assisted purchase scheme which had been an interest free loan to enable the purchase of goods had been amended to a grant award scheme.  Winter fuel payments had been made and food vouchers had been provided for some families with school age children. 

A table contained in Document AA providing a breakdown of the work status of Universal Credit claimants by Job Centre was queried.  It was explained that not all claimants were required to seek work, for example, if they had an underage child.    - 

The report revealed that the Government had identified £113 million to support new claimants in making a claim for Universal Credit through the Future Support Offer and, in response to questions, it was clarified that this work was carried out by the Citizens Advice Bureau. 

A Member questioned the impact of benefit caps and was advised that caps could be higher with Universal Credit.  It was agreed to provide additional information on the impact after the meeting.

A Member suggested that a number of people migrating from legacy benefits to Universal Credit would suffer financially through enforced changes and questioned what plans were in place of assist the difficulties they would face.  In response it was explained that the Government pilot referred to in the report was to ascertain the support which would be required.  Members questioned if the pilot population would be randomly selected and their location in the UK.  It was believed that lessons would be needed to interpret the pilot and to consider the volume of people impacted financially by the migration. 

A Member expressed a view that it would be more difficult for people to remain on legacy benefits and was concerned that vulnerable people would run into difficulty if they were unable to manage their budgets.  It was accepted that some people did find it difficult to manage fluctuating incomes and acknowledged that there had been an increase in people requiring supported accommodation.  It was explained that this had been an attempt to remove people from addiction and provide life skills.

The report revealed that in 2020/21 unsubsidised Housing Benefit for the supported housing sector amounted to £677,085. The amount for financial year 2021/22 at November 2020 was £506,295, and was forecast to be £893,000 by the end of the year. That shortfall had to be met from Council budget. The 2021/22 forecast included a one-off backdated cost related to the reclassification of some tenancies as Supported Accommodation and the cost of that one off payment was questioned.  It was reported that the cost had been £180,000.

In response to questions it was clarified that there was a risk that, if the sector continued to expand at the present rate and the expansion was by providers who were not registered social landlords the cost to the Council would increase. Where the Council were commissioning services it would, where possible, be with a registered provider in order to mitigate financial loss through unsubsidised Housing Benefit. In response to questions about the availability of the required number of registered providers it was explained that as the volume of residents needing that support in the future was not known so the requirement could not be calculated.  

It was agreed that a report in 12 months-time focusing on the migration of universal credit would be useful and it was requested that the report include historical data of the number of residents migrated to universal credit to allow Members to understand the trajectory of that group.

Resolved

This committee requests that a report be presented in 12 months, which focuses on the:

§  Roll-out of Universal Credit in the District;

§  Inclusion of historical data.

Action: Strategic Director, Corporate Services