CABINET RESPONSE TO REPORT OF COMMITTEE TITLED THE IMPACT OF UNDER OCCUPATION OF SOCIAL HOUSING (BEDROOM TAX) WELFARE REFORM IN CARDIFF.

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1 CITY OF CARDIFF COUNCIL CYNGOR DINAS CAERDYDD COMMUNITY & ADULT SERVICES SCRUTINY COMMITTEE AGENDA ITEM 2 nd July 2014 CABINET RESPONSE TO REPORT OF COMMITTEE TITLED THE IMPACT OF UNDER OCCUPATION OF SOCIAL HOUSING (BEDROOM TAX) WELFARE REFORM IN CARDIFF. Purpose of Report 1. The purpose of this report is to provide Members with an overview of the Cabinet response regarding their scrutiny of The Impact Of Under Occupation Of Social Housing (Bedroom Tax) Welfare Reform In Cardiff. Background 2. At its meeting on 23 rd July 2013, Members chose to carry out an inquiry into the impact of Under Occupation of Social Housing Welfare Reform in Cardiff, otherwise known as the Bedroom Tax, and agreed the following terms of reference: To gain an understanding of the latest position with regard to the known impact of Welfare Reform changes for citizens and advice services organisations in Cardiff. To hear how Cardiff Council is dealing with the impact of Under- Occupation of Social Housing Welfare Reform. To examine the pros and cons of approaches taken by other local authorities in the U.K. to manage the impact of the Under Occupation of Social Housing (also known as the Bedroom Tax) in their area, including reclassification and no eviction policies. To utilise the findings from the above to make informed recommendations to all relevant parties on the most appropriate approaches to take in Cardiff. 3. Members of the Task & Finish group were: a. Councillor Daniel De Ath (Chair) b. Councillor Joseph Carter 1

2 c. Councillor David Groves d. Councillor Paul Mitchell. 4 As part of this inquiry, Members requested desk-based research to review the different approaches taken by other local authorities to managing the impact of the under occupation of social housing (Bedroom Tax) welfare reform changes. 5 The task group Inquiry was informed by evidence from Councillor Lynda Thorne, Cabinet Member (Communities, Housing and Neighbourhood Regeneration), Sarah McGill (Director - Communities, Housing and Customer Services), Jane Thomas (Operational Manager, Benefits, Finance and Tenant Services) and Richard Griggs (Housing Services Legal Officer). 6 The task group Inquiry also heard from the following external witnesses: Adam Johannes - Cardiff Against the Bedroom Tax (CABT) Sue Leader - Cardiff Against the Bedroom Tax (CABT) Jamie Insole - Cardiff Against the Bedroom Tax (CABT) Paul Callaghan - Cardiff Against the Bedroom Tax (CABT) John Fellows - Cardiff Tenants and Residents Federation Steve Clark - Welsh Tenants. 7 Members invited written evidence from partner housing associations and from advice agencies operating in Cardiff. Responses were received from the following organisations: Hafod Housing Association Linc Cmyru Housing Association Taff Housing Association CAB Cardiff and Vale. 8 All of the above was used to identify suitable findings from the Inquiry and recommendations, which were agreed by Committee on 4 th December 2013 for submission to the Cabinet. 2

3 9 The Cabinet received the report at their meeting on 21 st February 2014 and agreed their response to the recommendations at their meeting on 12 June Cabinet Response to Recommendations 10 A full copy of the Cabinet Response is attached at Appendix A. Overall, the Committee made ten recommendations to the Cabinet. The Cabinet response states that: a. Eight of the recommendations are accepted R1, R2, R3, R5, R6, R8, R9 and R10 b. Two are partially accepted R4 and R7 Way Forward 11 Councillor Susan Elsmore (Cabinet Member Health, Housing and Wellbeing) and Sarah McGill (Director - Communities, Housing and Customer Service) have been invited to present the Cabinet Response and answer Members questions on this. 12 Members are requested to consider the responses received from the Cabinet. Legal Implications 13 The Scrutiny Committee is empowered to enquire, consider, review and recommend but not to make policy decisions. As the recommendations in this report are to consider and review matters there are no direct legal implications. However, legal implications may arise if and when the matters under review are implemented with or without any modifications. Any report with recommendations for decision that goes to Cabinet/Council will set out any legal implications arising from those recommendations. All decisions taken by or on behalf of the Council must (a) be within the legal powers of the Council; (b) comply with any procedural requirement imposed by law; (c) be within the powers of the body or person exercising powers on behalf of the Council; (d) be undertaken in accordance with the procedural requirements imposed by the Council e.g. Scrutiny Procedure Rules; (e) be fully and properly informed; (f) be properly motivated; (g) be taken having regard to the Council's fiduciary duty to its taxpayers; and (h) be reasonable and proper in all the circumstances. 3

4 Financial Implications 14 The Scrutiny Committee is empowered to enquire, consider, review and recommend but not to make policy decisions. As the recommendations in this report are to consider and review matters there are no direct financial implications at this stage in relation to any of the work programme. However, financial implications may arise if and when the matters under review are implemented with or without any modifications. Any report with recommendations for decision that goes to Cabinet/Council will set out any financial implications arising from those recommendations. RECOMMENDATION The Committee is recommended to receive the Cabinet response and agree the way forward for receiving progress reports on the work required in response to the recommendations in the report. MARIE ROSENTHAL County Clerk and Monitoring Officer 16 June

5 CITY OF CARDIFF COUNCIL CYNGOR DINAS CAERDYDD CABINET MEETING: 12 JUNE 2014 CABINET RESPONSE TO THE REPORT OF COMMUNITY AND ADULT SERVICES SCRUTINY COMMITTEE ENTITLED: THE IMPACT OF UNDER OCCUPATION OF SOCIAL HOUSNG (BEDROOM TAX) WELFARE REFORM IN CARDIFF. REPORT OF DIRECTOR OF COMMUNITIES, HOUSING &CUSTOMER SERVICES AGENDA ITEM: 14 PORTFOLIO: HEALTH, HOUSING AND WELLBEING Reason for this Report 1. To respond to a report published by the Community and Adult Services Scrutiny Committee in January 2014 entitled The Impact of Under Occupation of Social Housing (Bedroom Tax) Welfare Reform in Cardiff. Background 2. The Community and Adult Services Scrutiny Committee agreed to form a Task and Finish Group on the impact of the size criteria introduced by the Welfare Reforms for social housing tenants, more commonly known as the Bedroom Tax. This is the second Inquiry report that the Committee has undertaken focusing on Welfare Reform, the first report looked at the work to mitigate the overall impact of Welfare Reform in Cardiff. 3. The Committee agreed the following Terms of Reference for the Task and Finish Group:- To gain an understanding of the latest position with regard to the known impact of Welfare Reform changes for citizens and advice services organisations in Cardiff. To hear how Cardiff Council is dealing with the impact of Under- Occupation of Social Housing Welfare Reform. To examine the pros and cons of approaches taken by other local authorities in the U.K. to manage the impact of the Under Occupation of Social Housing (also known as the Bedroom Tax) in their area, including reclassification and no eviction policies. Page 1 of 3

6 Issues To utilise the findings from the above to make informed recommendations to all relevant parties on the most appropriate approaches to take in Cardiff. 4. The report recognises that the Council has prepared well for the introduction of the size criteria, establishing a task group with partner housing associations and working with other organisations, such as Cardiff and Vale Credit Union and advice agencies. The report notes that this approach has been welcomed by partners and recognised as good practice by the Welsh Government and U.K. Cabinet Office. 5. The report also notes that the Council has been praised for trying to solve problems flowing from the introduction of the size criteria and notes that a proactive approach has been taken to using the DWP Discretionary Housing Payment grant. 6. The report makes 10 recommendations and all have been accepted or partially accepted. Full details of the recommendations and response are contained in appendix 1. Reasons for Recommendations 7. To enable the Cabinet to respond to the report published by the Community and Adult Services Scrutiny Committee. Legal Implications 8. Any relevant legal implications will be identified and considered as part of the work to progress the responses to the recommendations that are accepted. Financial Implications 9. Any relevant financial implications will be identified and considered as part of the work to progress the responses to the recommendations that are accepted. RECOMMENDATIONS Cabinet is recommended to agree to the response to the recommendations as set out in Appendix A. SARAH McGILL Director 6 June 2014 Page 2 of 3

7 The following Appendix is attached: Appendix A: Cabinet Response to the Report by the Community and Adult Services Scrutiny Committee into The Impact of Under Occupation of Social Housing (Bedroom Tax) Welfare Reform in Cardiff The following Background Paper has been taken into account: The Community and Adult Services Scrutiny Committee report into The Impact of Under Occupation of Social Housing (Bedroom Tax) Welfare Reform in Cardiff Page 3 of 3

8 Appendix 1 Cabinet Response to the Report by the Community and Adult Services Scrutiny Committee into The Impact of Under Occupation of Social Housing (Bedroom Tax) Welfare Reform in Cardiff Cabinet welcomes the findings of the Community and Adult Services Scrutiny report into the impact of the under occupation of social housing (Bedroom Tax), and was pleased to note that the committee recognised the good work that has been carried out by the Council and its partners in preparing for the changes and in supporting the tenants affected. A response to each of the recommendations is set out below: R1. Task officers to maintain the current approach to providing advice and support to affected council tenants. Supported by Key Findings 2, 5, 6, 10, 11, 12 &14 Cardiff Council and partner organisations are continuing to help social housing tenants move to smaller properties by maintaining the approach outlined in the report. Since the report was written, the number of tenants affected by the size restriction rules has further decreased to 2,871, an overall reduction of 1,323 since the project began. The Housing and Communities service is continuing to support affected tenants with a range of Discretionary Housing Payments schemes and continues to monitor these for effectiveness and possible improvements. A pro-active and supportive approach to rent arrears recovery has been maintained and at the end of the year arrears had increased by 97,233 which is a significant reduction on the original projected figure of nearly 1 million. R2. Task officers to maintain the current approach regarding engaging with council tenants and not evicting a council tenant who is engaging with the Council and genuinely seeking to resolve their situation. Supported by Key Findings 14, 15, The current approach is being maintained and to date no tenant has been evicted due to under occupation alone. Page 1 of 4

9 R3. Task officers to put in place processes to monitor homelessness applications from people who have been evicted by housing associations using Ground 8 and to take robust action to address this with housing associations if needed. Supported by Key Finding 14 Currently if an applicant presents as homeless from a Housing Association tenancy, the Housing Options Centre will contact the Housing Association and attempt to prevent the notice proceeding. These cases will now be recorded and monitored to determine any further action that may be taken. R4. Task officers to ensure that every affected council tenant is made aware that the Council pursues a reclassification policy and that council tenants can request a home visit to assess whether their property requires reclassification. Supported by Key Findings 23 & 24 Response: This recommendation is partially accepted It is accepted that is important that tenants are aware of what to do if they think their property has been classified incorrectly, however information has already been sent to all council tenants in October 2013 to advise them that they can contact the council if they believe they have less bedrooms or that some bedrooms are too small to be used as a bedroom. There are no proposals to repeat this exercise however there is a fact sheet on the website which explains this process. R5. Task officers to work across Directorates to ensure that appropriate help and assistance is offered with re-orientation for social housing tenants with impairments who move to another property. Supported by Key Findings 3, 5 & 6 When a social housing tenant with impairment moves to another property, The Social Letting Unit will evaluate the facilities needed during the letting process and liaise with Community Maintenance Services to ensure the property is appropriately adapted prior to the tenant moving in. The needs of tenants are considered on a case by case basis and good working relations are in place across directorates to allow referral to the appropriate services areas when needed. Page 2 of 4

10 R6. Task officers to explore all opportunities to ensure that, wherever appropriate, all eligible disabled people receive Disabled Band Relief. Supported by Key Finding 28 Opportunities to ensure all eligible disabled people receive Disabled Band Relief will be thoroughly explored through the Welfare Reform Debt Group meeting. R7. Task officers to investigate ways of ensuring that all disabled households that qualify for Disabled Band Relief and are affected by the size criteria are exempted from having to meet the shortfall in rent. Supported by Key Finding 28 Response: This recommendation is partially accepted Disabled Band relief can apply if someone in their home has a substantial or permanent disability. The home must contain one of the following features or facilities: An additional bathroom, or kitchen; or A room other than a bathroom, kitchen or toilet which is used mainly by the person with the disability; or Extra space to allow for the use of a wheelchair Therefore, Disabled Band Relief does not necessarily mean that the tenant or someone in their home has a need for a spare bedroom. In addition there are no rules within the Housing Benefit scheme to exempt these tenants from the size restriction rules. However it is accepted that receipt of this relief is an indicator that assistance may be required and therefore a matching exercise between benefit and Council Tax data was carried out. This has shown that there are nineteen tenants affected by size restrictions who get Disabled Band Relief. Officers will work with these tenants to check if they can be given any further help and will run a report periodically to identify new tenants that may need help. Also in response to concerns about this client group, where it is shown that a person does need an additional room due to their disability Discretionary Housing Payments are now made available without the need for an income assessment. R8. Task officers to keep a watching brief on outcomes elsewhere of actions being taken by other local authorities and tribunals and case law development in order to identify useful opportunities to assist affected social housing tenants in Cardiff. Supported by Key Findings Page 3 of 4

11 The Welfare Reform Team regularly monitor developments in caselaw, Tribunal hearings and practices by other local authorities to identify areas in need of consideration. Any points indentified are brought to partnership meetings, such as the Welfare Reform Task Group and the Social Landlords Group, to consider what action should be taken. R9. Task officers to develop effective means of publicising community based internet access points across Cardiff. Supported by Key Findings A mapping portal for all public access PCs across Cardiff has been created. Publicity to promote this is currently being developed. Digital Inclusion training has been rolled out to Hubs and Libraries across the city and is now available on a regular basis. The Digital Inclusion Task Group is also investigating whether it is feasible to use a text service to tell people where their nearest internet access is. R10. Protect and publicise community based internet access in order to be prepared for Universal Credit. Supported by Key Findings The Hub project is increasing the self service facilities that are available in the community including both IT access and free phone facilities. As stated above a mapping portal for public access PCs has also been developed and will now be more widely publicised. Page 4 of 4