Agenda item

To receive a joint report by the Heads of Customer and Housing Services on the potential impact of housing benefit changes upon Huntingdonshire.

20 Minutes.

(Councillor B S Chapman, Executive Councillor for Customer Services and Councillor N J Guyatt, Executive Councillor for Strategic Planning and Housing, were in attendance for consideration of this item).

With the aid of a joint report by the Heads of Customer Services and of Housing Services (a copy of which is appended in the Minute Book) the Panel gave consideration to the impact of changes to the Housing Benefit system upon Huntingdonshire residents. The Executive Councillor for Customer Services reported that the changes were part of the Government’s Welfare Reform programme. They largely affected the Local Housing Allowance paid to households that were assessed as being eligible for help with their rent in the private sector. Members were advised that the effect of the changes to the Housing Benefits system had resulted in a reduction of £370,000 per annum, in the amount that was paid to existing benefit claimants renting in the private sector. This equated to a reduction in benefit entitlement of between £3 and £70 per week. The changes were likely to have an impact on existing claimants from January 2012, which could potentially result in households falling into rent arrears, facing the threat of eviction and/or possible homelessness.

In response to a question by a Member, the Panel was advised that a majority of claimants would lose less than £10 per week. Members were however concerned at the greater impact that the changes would have on larger households in properties with 4 or more bedrooms. These households would experience a significant reduction in their entitlement and consequently were likely to turn to the Council for assistance. Given the shortage in the availability of social rented housing, it was likely that there would be an increase in the number of households facing homelessness. This could result in more use being made of temporary accommodation with the associated additional costs being incurred by the Council. In response to a subsequent question by a Member, the Panel was informed that additional provision to meet demands on Council services as a result of an increase in the level of homelessness had been made within the budget.

The Panel discussed a number of ways in which the changes would have an impact locally. These included landlords potentially having to sell their properties, thereby reducing the number of homes available for rent in the private sector, the relocation of households into the District from other local authority areas in their search for more affordable housing, whether certain areas within the District would be affected more than others, utilising empty properties in the District to assist with meeting the shortfall in housing and other ways of increasing the stock of social rented housing.

Having been advised that other welfare benefit reforms through the introduction of the Universal Credit system contained within the Welfare Reform Bill were expected to have further impact on Huntingdonshire residents, the Panel

RESOLVED

(a)  that the report now submitted be noted; and

(b)  that a further report drawing together the wider housing policy implications for the Council arising from the Government’s Welfare Reform Bill be submitted to a future meeting of the Panel.

(At this point (7.30pm) Councillor J J Dutton left the meeting).