Issue - items at meetings - Discretionary Housing Payments

Report of the Executive Director for Finance & Resources (copy attached).

(1)               That the principles for the administration of the DHP be agreed as set out in paragraph 3.12 of the report;

(2)               That the proposed scheme for assessing applications to DHP as set out in Appendix 1 to the report be agreed; and

(3)               That the Executive Director of Finance & Resources, the Head of City Services and other appropriate officers exercising relevant functions be authorised to take all appropriate steps to administer the scheme.

185.1          The Executive Director for Finance & Resources introduced the report which outlined how applications to the Discretionary Housing Payment (DHP) would be assessed in the future following various changes to welfare reform by the Government.  She noted that as a result of the changes it was anticipated that there would be a greater demand for support from the DHP and that individual cases would be considered on a case-by-case basis.

185.2          Councillor Littman welcomed the report and stated that he hoped it would provide the basis for cross-party understanding of the parameters of the scheme and noted that for 2013/14 the reduction in housing benefit that people in the city would receive was £11-12 million less than it was in 2010/11.  The DHP was intended to provide temporary financial assistance to people who were experiencing particular difficulties or hardship.

185.3          Councillor A. Norman welcomed the report and what she felt was a fair and balanced scheme.

185.4          Councillor Mitchell thanked the officers for the report and stated that it was difficult to estimate the lasting effects of the welfare reform changes; however she fully supported the recommendations.  She also noted that there was a question mark over the proposed use of HRA monies to support the fund that was detailed in the report that was due to be considered by the Housing Committee.

185.5          Councillor K. Norman asked for clarification in regard to the Housing Committee report and the use of £70k from the HRA budget; as he believed the restrictions associated with the use of HRA funding may be called into question.  He also noted that there were a number of exemptions that needed to be taken into account with regard to who was likely to be affected by the changes.

185.6          The Chair noted the comments and stated that he was sure that these issues would be considered by the Housing Committee.  He also noted that it was estimated that 500 households would be in need of support as a result of the changes and that £13m was being taken out of the DHP next year for local authorities.  He also suggested that the questions in relation to the HRA budget were more of a matter for the Housing Committee.

185.7          The Executive Director for Finance & Resources stated that the proposed use of £70k was part of the General Fund and would only be accessible to council tenants who would also be able to access the core funding that would be available.  The report did recognise that there were possible legal constraints in relation to the HRA and therefore advice was being sought from the Secretary of State by a number of authorities as to whether this was an option.

185.8          Councillor Hamilton stated that the reductions in Housing Benefit and the DHP fund as a result of Government action would put pressure on a number of families and it was likely that people would not use their housing benefit to pay their rents as they would be faced with less income and other pressures that they felt were more pressing.  In which case it would only add to the problems faced because of rent arrears and the increased likelihood of being made homeless and therefore more pressure on the council.

185.9          Councillor G. Theobald noted that the Government had inherited a budget deficit and action was required to address that and therefore changes were necessary.

185.10      The Chair noted the comments and put the recommendations to the vote.

185.11      RESOLVED:

(1)         That the principles for the administration of the DHP be agreed as set out in paragraph 3.12 of the report;

(2)         That the proposed scheme for assessing applications to DHP as set out in Appendix 1 to the report be agreed; and

(3)         That the Executive Director of Finance & Resources, the Head of City Services and other appropriate officers exercising relevant functions be authorised to take all appropriate steps to administer the scheme.