Agenda item

To consider a report by the Heads of Customer and Housing Services.

(Councillors B S Chapman, Executive Councillor for Customer Services, and N J Guyatt, Deputy Leader of the Council, were in attendance for this item).

The Panel gave consideration to a joint report by the Heads of Customer Services and of Housing Services (a copy of which is appended in the Minute Book) on the impact of changes to the Housing Benefit system on Huntingdonshire residents. The Executive Councillor for Customer Services reported that the changes largely affected the Local Housing Allowance paid to households that were assessed as being eligible for help with their rent in the private sector. The effect of the changes had resulted in a reduction of £370,000 per annum in the amount that was paid to existing benefit claimants. This equated to a reduction in benefit entitlement of between £3 and £70 per week and would start to take effect from January 2012, which could potentially result in households falling into rent arrears and facing the threat of eviction and/or homelessness. Having drawn attention to other changes which would be introduced in the period to April 2013 as part of the Government’s welfare reform programme, Councillor Chapman invited Panel Members to comment on the information provided.

In considering the contents of the report, Members queried whether an assessment had been made of the local impact of the changes in housing benefit. The Panel was advised that it was difficult to assess the exact impact at this stage. Although the changes had been introduced in April 2011 there had been a nine-month protection period which was now due to come to an end and so the effects were just starting to emerge. The Council had written to those who were affected by the changes to advise them to seek advice at an early stage. It was also reported that there had already been a reduction in the number of available private sector properties for rent and Members commented on the increase in cost of rents that would result if this trend continued. Councillor M F Shellens suggested that it would be useful to receive regular reports on these matters.

In response to a question by a Member on whether the changes would have an impact on the cost to the Council of providing the homeless with temporary bed and breakfast accommodation, the Panel was advised that this was likely to be the case and that the Council was reliant on a small number of providers of this type of accommodation. The New Build Programme had helped the situation during the last few years but this would not be the case in the future. Discussions were currently ongoing with the Housing Associations to identify alternatives to bed and breakfast accommodation.

Further on the use of bed and breakfast accommodation, the Panel was advised that the Council primarily dealt with two providers and that there were currently 11 households in this type of accommodation in the District.  Having been advised of the cost of an average double room, the Panel was informed that the Council often had to take action at short notice and sought to do so in the best and most cost effective manner. Councillor S Greenall requested a breakdown of the average cost per night of this type of accommodation for 2010 and 2011.

There was no indication at this stage of the level of budget which was likely to be required to meet the expected increase in homelessness in the future. Consequently there was currently no provision within the 2012/13 Budget for an increase in homelessness, though reference was made to the impact of the various benefit changes in the text. Members queried whether the Council should seek to increase the budget estimate for homelessness at this stage; however, the Head of Financial Services explained that in the absence of an accurate estimate of the impact it was not practical to do so. Given that the Council was likely to increase its level of reserves, he was not unduly concerned about the situation for the forthcoming financial year. Having requested an update on this subject on a quarterly basis when there was likely to be a better indication of the impact on Huntingdonshire residents, it was

RESOLVED

a)  that the report now submitted be noted;

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, and

c)  that further reports on rental levels and rent costs be submitted to the Panel on a quarterly basis.