The Shared Revenues and Benefits Joint Committee has decided to acknowledge updates on welfare reforms and support measures for residents amid cost of living challenges.

URL: https://democratic.lincoln.gov.uk/ieDecisionDetails.aspx?ID=1742

Decision Maker: Shared Revenues and Benefits Joint Committee

Outcome: Recommendations Approved

Is Key Decision?: No

Is Callable In?: No

Purpose:

Content: Purpose of Report   To provide Shared Revenues and Benefits Joint Committee with an update regarding various areas relating to the national welfare reform agenda, as well as current cost of living initiatives to support residents.   Decision   That the content of the report be noted, and a further update be presented at the next meeting of this Committee.   Alternative Options Considered and Rejected   None.   Reason for Decision   The report provided Shared Revenues and Benefits Joint Committee with an update with regard to the national and local position of welfare reform/other initiatives, with a specific focus on Universal Credit, Discretionary Housing Payments, Household Support Fund, Energy Bill Support Schemes, Council Tax Support Fund and Financial Inclusion matters.   The national Welfare Reform agenda had a significant impact on residents of Lincoln and North Kesteven since 2013 when certain changes were introduced – such as Removal of Spare Room Subsidy, and Benefit Cap – and had continued as further changes had been introduced, such as the ongoing rollout of Universal Credit. These changes had resulted in major changes to the operating of our shared service, to ensure a proactive and positive response to welfare reform and the impacts on residents.   The Covid-19 pandemic and now the rising cost of living, had caused major challenges to households locally and nationally. The Revenues and Benefits Shared Service played a lead and key role in developing deliverable schemes to help mitigate some of the impacts of cost-of-living challenges. Some of these schemes were directly delivered by this Service, some in partnership with other teams within the Councils, also with organisations such as those in the voluntary sector.   Universal Credit   The latest national figures published by the Department for Work and Pensions (DWP) were released on 15th August 2023, with statistics relevant to the period up to June 2023:   5,965,178 households receiving UC (this was an increase from 5,836,354 as reported at the last meeting of this Committee).       Local authority statistics:   City of Lincoln – 11,343 (11,305 as at the last report). North Kesteven – 6,789 (6,644 as at the last report).   Discretionary Housing Payments (DHP)     In June 2023, a letter was issued to City of Lincoln Council and North Kesteven District Council setting out commencement of Tax Credit cases managed migration to Universal Credit starting September 2023. Officers understood all Lincolnshire, Nottinghamshire and Rutland local authorities received the same letter, as had all areas of the country. Officers were working closely with the Department for Work and Pensions locally and nationally to fully understand the impacts moving forward.   City of Lincoln’s DHP initial government grant for 2023/24 was £132,330 and North Kesteven’s £86,931.   Overall DHP funding for 2022/23 was reduced nationally from £140m to £100m. Consequently, grants for City of Lincoln and North Kesteven were also reduced by more than 29% each.   On 23rd February 2023, DWP announced DHP government grants for 2023/24. For City of Lincoln and North Kesteven, these were exactly the same amounts as for 2022/23; the national DHP allocation for 2024/25 would also be the same as for 2023/24.   As is usual, in advance of the new financial year a review of DHP internal guidance had been carried out – with two key changes implemented for 2023/24:   -       Certain disability-related incomes previously disregarded when assessing DHP applications, to not be disregarded;   -       Awards to those in private sector rented properties to be increased, to help reflect the challenges of frozen Local Housing Allowance rates.   The impacts of these changes were being closely monitored.     In his Autumn statement the Chancellor of the Exchequer announced an extension to the Household Support Fund, running from 1st April 2023 to 31st March 2024. Guidance was issued to local authorities on 20th February 2023, with allocations for this round of funding. For Lincolnshire, Household Support Fund 2023/24 funding was £10,929,370 – to cover the whole financial year. Household Support Fund Wave 4 (HSF4)   In Quarter 1 2023/24, Lincolnshire County Council confirmed plans in respect of Household Support Fund Wave 4 2023/24 with main details contained at paragraph 6.1 of the officer’s report.   In terms of District Councils’ separate allocations of HSF4 to be utilised to work with partners to provide payments, including through an application-based process in part (a requirement of the national HSF4 guidance), these had now been communicated to District Councils’ HSF4 lead officers, - for City of Lincoln £202,676 had been allocated, and for North Kesteven £139,340.   Officers were in discussions with an established range of referral partners and application processes – as well as potentially some new partners/routes – to ensure these HSF4 monies (through vouchers, food parcels, energy top-ups, etc.) were delivered to those identified as in need. A key focus would again be on reducing foodbank dependency wherever possible, working with partners to help signpost residents to other means of support (e.g., money advice), - as well as supporting a drive to further increase usage of community groceries. A strategic aim of HSF4, was also to try and leave a ‘legacy’ of impact – as there was no guarantee of HSF5 (or of another form of local welfare provision) from 2024/25 onwards.   Energy Bill Support Scheme Alternative Funding/Alternative Fuel Payment   In October 2022, Central Government announced that the EBSS AF scheme was intended to provide the £400 of support for households across the UK that would otherwise miss out on the Energy Bills Support Scheme – which the vast majority of households were already receiving – as they did not have a domestic electricity contract.   The government further announced, on 19th December 2022, how people in England, Scotland and Wales without a direct relationship to a domestic energy supplier, including many care home residents and those living in park homes, would receive a £400 discount on their fuel bills through EBSS AF.   The government also provided a further £200 Alternative Fuel Payment (AFP) to help those households in Great Britain who used alternative fuels such as biomass or heating oil to meet energy costs last winter.   Applications approved and paid for both City of Lincoln and North Kesteven were detailed within the officer’s report.   Council Tax Support Scheme 2023/24   On 23rd December 2022, Central Government provided guidance to local authorities regarding a £100 million Council Tax Support Fund for 2023/24, whereby awards of up to £25 were to be made to Council Taxpayers in receipt of Council Tax Support, - with an element of funding also to be made for discretionary local funds in 2023/24. Funding allocations for City of Lincoln and North Kesteven were £222,303 and £142,500, respectively. Payments of up to £50.00 (the prescribed maximum was £25.00) were made to City of Lincoln and North Kesteven taxpayers as part of the 2023/24 Council Tax annual billing process. Remaining funding would be considered for local schemes in 2023/24. These figures were £101,705 for City of Lincoln, and £38,628 for North Kesteven. The remaining funding was to be allocated in a detailed breakdown explained at paragraph 8 of the officer’s report Financial Inclusion   Financial inclusion continued to be a key objective and factor in many areas of LiNK’s work. The Lincolnshire Financial Inclusion Partnership (LFIP) was currently chaired by the Assistant Director Shared Revenues and Benefits for North Kesteven District Council and City of Lincoln Council, - which brought together organisations and partners to promote and raise the profile of financial inclusion across the county. LFIP aimed to ensure that everyone had the capability and opportunity to access appropriate financial services and products needed to participate fully in society.   Week commencing 6 November 2023, the Money and Pension Service ‘Talk Money Week would be launched. A series of events would be held across the County, including a visit to Lincoln by the Executive of the Money and Pension Service. Further ‘pop up’s’ to get information across would be held once the position of City of Lincoln Coordinator was in post.   A conference would be held in February 2024, details ‘to follow’.

Date of Decision: September 7, 2023