The Director of Finance reported that Housing Benefit spend was the largest individual budget within the Council Budget and Members were advised of any changes which impacted upon it. In addition, the budgets, including sums set aside in provisions and reserves, were kept under review to ensure sums no longer required were released.

He set out legislative changes to Housing Benefits (Local Housing Allowance) that would come into effect from April 2011 and outlined proposals to reform the welfare system by the creation of a new Universal Credit under the Welfare Reform Bill. He also provided information on the Lean Review of Benefits, presented the budget for 2011/2012; and submitted a review of the reserves and provisions.

It was moved by Councillor P Davies and seconded by Councillor A Jones –

“(1) That Committee condemns the fact that planned changes to Housing Benefit and Local Housing Allowance will significantly worsen conditions for benefit claimants, reducing the amount of property available to rent within the reduced allowances available, reducing the size of properties available for those with large families, with the potential for overcrowding and reducing to a single room the size of property allowed for single claimants between 25 and 35.

(2) That Committee recognises that the cap on Housing Benefit/Allowance will cause severe hardship and increase homelessness in high rental areas like London.

(3) That this Committee is concerned that the introduction of the Universal Credit could lead to severe practical difficulties arising from the transfer of responsibilities from local to central Government.

(4) That this Committee believes that the issue of Welfare Reform and changes to the benefits system announced recently, and its likely impact on Local Government staffing and finances requires detailed examination and should be the subject of a special study by this Overview and Scrutiny Committee”.

Part (4) above, of the motion by Councillor Davies, seconded by Councillor Jones, was agreed unanimously without a vote.

It was moved as an amendment by Councillor P Gilchrist and seconded by Councillor A Brighouse –

“That the Committee is keen to follow the development of a national policy for the benefit of tenants and welcomes the move to Universal Credit”.

The amendment was put and carried (6:4)

The amendment, then becoming the substantive motion, incorporating part (4) of the motion by Councillors Davies and Jones, was put and carried.

Resolved (Councillors P Davies, D Dodd, A Jones and J Stapleton voting against (1) below) –

(1)  That the Committee is keen to follow the development of a national policy for the benefit of tenants and welcomes the move to Universal Credit. (6:4)

(2)  That this Committee believes that the issue of Welfare Reform and changes to the benefits system announced recently, and its likely impact on Local Government staffing and finances requires detailed examination and should be the subject of a special study by this Overview and Scrutiny Committee.