Agenda item

The Committee received a report on the impact of Universal Credit on Council tenants in Haringey. The report was introduced by Tracey Downie, Interim Head of Income Management for Homes for Haringey as set out in the agenda pack at pages 137 to 141. The following was noted in discussion of the report:

a.    The Committee welcomed the report and noted with concern that the picture portrayed in the report was significantly worse than the Committee were led to believe during the previous discussion held on the subject in July. The Committee were advised that there were 1529 tenants in receipt of Universal Credit (out of a total of around 17,000) and that it had a significant impact on residents’ income. Furthermore, research had indicated that residents in receipt of Universal Credit were twice as likely to be in rent arrears. Arrears tended to be worse for tenants that routinely moved in and out of work.

b.    The Committee raised concerns that some of the people who were worst impacted by Universal Credit did not have secure tenancies in social housing, but rather lived in private-rented accommodation or were housed in Temporary Accommodation.

c.    In response to a question, officers advised that the total debt owed to HfH from 1622 tenants on Universal Credit was £971.400. The Committee noted that there were around 20 new HfH residents that transitioned to Universal Credit a week.

d.    In response to a question around how arrears were monitored, the Committee was advised that HfH were able track arrears from the date of a tenant transitioning to Universal Credit to where they were now and that, residents routinely accrued rent arrears particularly during the transition period.

e.    In response to a request for further information around staffing resources available to support tenants on Universal Credit, the Committee noted that the whole income support team provided a level of support and that a number of engagement events took place for tenants on this. There were 2 welfare advisors within HfH that provided an array of support and considered whether there were additional benefits that the tenant was entitled to. There were 3 dedicated officers who dealt with Universal Credit, as well as other officers who worked on the bedroom tax and the benefit cap. In total, it was noted that there was a team of six or seven staff who provided dedicated support in one aspect or another. 

f.     The Committee raised concerns with online applications and the equalities considerations inherent within this. In response, HfH acknowledged these concerns and set out that the online application process was a policy decision taken by the DWP which had created a real challenge in some cases. Particularly, as recipients were expected to maintain an online journal and provide responses to the DWP through that online journal. Support facilities were offered by HfH and through Haringey CAB but these services often had to be booked in advance.

g.    The Chair commented that, in light of the update received, the Committee needed to give further consideration to how the system worked, the increasing tendency towards arrears and  how this could lead to a debt trap.

h.    The Committee also expressed concern about the knock-on effect created by increased financial stress, particularly around mental health and wellbeing and the impact on children’s school work. The Committee requested that a further update be provided around support services and what signposting was available for mental health support, including local community organisations. The Committee requested that this should also include some case studies on the impact of transitioning to Universal Credit for individual families. The Committee further requested figures for all of Haringey that also reflected private sector tenants rather than just HfH tenants. HfH advised that the DWP should be able to provide that information. (Action: Tracey Downie/Phylis Fealty/Helen Hili).

i.      The Chair expressed significant concern about the lack of a single point of contact or a lead officer on Universal Credit in the Council in light of this report.

RESOLVED

That the Committee noted the contents of the report.