Agenda item

The Board considered a joint report of the Director of Transformation and Partnerships that provided an update on the welfare reform programme and the wider issues of poverty and the council’s response so far through its poverty action plan, with a particular focus on child poverty, and analysis of the implications for the County (for copy see file of minutes).

The Head of Policy and Communications reported that government was continuing with its policy of welfare reform to achieve financial savings and to encourage people to support themselves through employment.

Further welfare and benefits policy announcements have been made since the last report to Cabinet in October 2015 with summaries of the announcements detailed in Appendix 2 and key headlines which included:-

(a)  the Department for Work and Pensions (DWP) Work Programme and Work Choice will be replaced by a new Work and Health Programme, contracts for which will begin from October 2017;

(b)  introduction of the Life Chances Strategy, with the first statistical report being published before the end of the financial year ending 31 March 2017;

(c)  removal of specific parts of the Child Poverty Act 2010, including the duty placed on local authorities to prepare and publish an assessment of the needs of children living in poverty in their area;

(d)  lowering the benefit cap so that the total amount of benefits to which a family on out of work benefits can be entitled to in a year will not exceed £20,000 for couples and lone parents, and £13,400 for single claimants;

(e)  changes to the child element of Universal Credit to limit payment for a maximum of two persons who are either children or qualifying young persons for whom a claimant is responsible;

(f)   freezing social security benefits for four tax years starting from 2016/17;

(g)  reduction in social housing rents by one percent a year for four years from April 2016;

(h)  proposal to apply the Local Housing Allowance cap to Housing Benefit all claims in supported and sheltered housing with a top-up paid by the local authority from 2019;

(i)    proposals to halve the disability employment gap published in Improving Lives, the green paper on work, health and disability.

The Head of Policy and Communications advised that the Interim Corporate Director of Children and Young People's Services was focusing on specific work surrounding child poverty and findings would be reported back to members.

Councillor Crute welcomed the work on child poverty from Children and Young People’s Service. He highlighted that government were also working on statistical information at the same time and to be prepared for considerable differences between the two pieces of work. He felt that findings from government would not be a true reflection of levels of child poverty in this part of the country and should not be looked at in isolation, with focus given to the value of work done in County Durham.

Councillor Wilkes referred to the Local Housing Allowance cap and the top up to be paid by the Local Authorities from 2019. He suggested that Corporate Issues Overview and Scrutiny consider the impact this would have.

Resolved:           

That the information contained in the report and the progress made by the Council and its partners in addressing welfare reform and the wider poverty issues in the county be noted.