An LG Group perspective on welfare reform Mike Heiser 4 July 2011

Universal Credit – the story so far Intended to be a monthly payment covering living and housing costs – one per household – digital by default Work has focussed on the online channel Less work so far on telephony and face to face Delivery initially will be through established structures – likely to mean Job Centre Plus Could be scope for more local involvement after 2017 – but this provides a challenge for councils’ planning Proposal for pilots and local delivery – being progressed with DWP DWP looking for pilots for payment to tenant in social sector Council tax benefit to be ‘localised’ – current CLG consultation

LG Group position – Universal Credit Welcome simplification and an easier customer experience Need for urgent clarification on how the UC delivery model will work – online, telephony and face to face Effect on different forms of tenancy – private rented, social housing – risk issues from payment to tenant rather than landlord Make case for continuing role for councils in face to face to contact particularly with ‘complex cases’ Ensure there is a proper Impact Assessment –Costs to councils of redundancy, system decommissioning Concern at centralised fraud strategy – but DWP now considering a more local option

Welfare reform and localism Face to face contact – councils have pioneered innovative ways of working Central local information exchanges – In and Out of Work, Government Connect Innovative ways of delivery - shared services - partnerships Examples of joint working with DWP –Kent Gateway –Central Bedfordshire –Wychavon

Other changes affecting housing benefit Changes introduced through orders –Caps, 30 th percentile, shared room rate, extra room for carers, end of £15 excess Changes in the Welfare Reform Bill –CPI, overall benefit cap, social housing sector limits – concern by foster carers

Effects on councils Overall environment – cuts of 28% in real terms over four years; Significantly front loaded – some districts have grant cuts of over 30% over two years Redundancies affecting benefit departments Uncertain future for both HB and CTB Need to keep business going over changeover period Different effects on different councils – districts face particularly significant challenges

LGA and advisers Benefits Steering Group and subgroups Transitional Working Group Universal Credit structures Liaison with CLG on council tax benefit reform