Proposed by Councillor Simon Holbrook

Seconded by Councillor Bob Moon

(1)  Council welcomes the Coalition Government's proposals for simplification and integration of the current complex system of benefits and tax credits and the replacement of a range of working-age welfare benefits with a "Universal Credit" from 2013 onwards.

(2)  Council believes that this will remove the "benefits trap", supporting people in the transition from benefits to work by ensuring benefits are tapered and that it will:

(a)  Simplify and amalgamate the main welfare benefits into one single system;

(b)  Ensure that work always pays; and

(c)  Alleviate poverty by boosting take-up and encouraging job market participation.

(3)  Council further believes that:

(a)  This policy is about supporting people, especially those on the lowest incomes.

(b)  The Universal Credit will streamline and simplify the system so that people will more easily know where they will stand if they take a job;

(c)  With a single benefit, take-up will improve, helping to reduce in-work poverty;

(d)  Combating high withdrawal rates of benefits as someone enters work or increases hours will increase people’s ability to change their circumstances without ending up with less money at the end of the week;

(e)  People will be able to keep more of their wage before the benefit taper kicks in;

(f)  There will be no cash losers – where the new, simpler system would produce a lower entitlement than the present system, current recipients will be protected;

(g)  That the use of sanctions will act as a deterrent and that the most severe sanctions are intended only to be applied in exceptional circumstances where people systematically and repeatedly abuse the system;

(4)  Therefore, Council calls on officers to work with partners to support residents in the transition to the proposed new system of working age benefits by ensuring that relevant information and advice on the new system and how they will be affected will be available through the call centre and one stop shop network.

Amendment submitted in accordance with Standing Order 7(2):

Proposed by Councillor Ron Abbey

Seconded by Councillor Stuart Whittingham

Delete everything and replace with the following:

(1)  This Council welcomes the intention of any reform which would enable more people on benefits to access work easily. However, it believes that the Coalition Government’s welfare reforms are destined to fail because they are not accompanied by measures which would create jobs. Instead the Government has already announced in the CSR that 490,000 public sector jobs will be lost and this is likely to result in an equivalent number of job losses in the private sector.

(2)  Council does not believe that there will be no cash losers, particularly as the current Housing Benefit will form part of the Universal Credit in future and the government has already introduced a cap on Housing Benefit which will severely disadvantage those living in high rent areas and cause severe hardship to many families.

(3)  Council further deplores the government plans for fixed term tenancies for social housing, with a potential minimum of just two years, which will be reviewed if the tenant’s financial circumstances improve. Council notes that this will act as a direct disincentive to work, with individuals forced to choose between a job or a roof over their head, which is in direct opposition to the government’s stated welfare reforms to encourage individuals into work.

(4)  Council is strongly opposed to the announced changes to Disability Living Allowance which will remove the mobility component for those living in residential care and limit their ability to have any kind of social or working life outside the residential setting. Council believes this is a retrograde step and, with further major cuts in the Disability Living Allowance budget projected for the future, sees this as a direct attack on those with disabilities which will worsen their living conditions and remove much of the progress made over the last decades which enable them to play a full part in society today.

Having applied the guillotine in accordance with Standing Order 7(8) the Council did not debate this matter.

The amendment was put and lost (24:38) (One abstention).

The Motion was put and carried (38:24) (One abstention).

Resolved (38:24:1) -

(1)  Council welcomes the Coalition Government's proposals for simplification and integration of the current complex system of benefits and tax credits and the replacement of a range of working-age welfare benefits with a "Universal Credit" from 2013 onwards.

(2)  Council believes that this will remove the "benefits trap", supporting people in the transition from benefits to work by ensuring benefits are tapered and that it will:

(a)  Simplify and amalgamate the main welfare benefits into one single system;

(b)  Ensure that work always pays; and

(c)  Alleviate poverty by boosting take-up and encouraging job market participation.

(3) Council further believes that:

(a)  This policy is about supporting people, especially those on the lowest incomes.

(b)  The Universal Credit will streamline and simplify the system so that people will more easily know where they will stand if they take a job;

(c)  With a single benefit, take-up will improve, helping to reduce in-work poverty;

(d)  Combating high withdrawal rates of benefits as someone enters work or increases hours will increase people’s ability to change their circumstances without ending up with less money at the end of the week;

(e)  People will be able to keep more of their wage before the benefit taper kicks in;

(f)  There will be no cash losers – where the new, simpler system would produce a lower entitlement than the present system, current recipients will be protected;

(g)  That the use of sanctions will act as a deterrent and that the most severe sanctions are intended only to be applied in exceptional circumstances where people systematically and repeatedly abuse the system.

(4)  Therefore, Council calls on officers to work with partners to support residents in the transition to the proposed new system of working age benefits by ensuring that relevant information and advice on the new system and how they will be affected will be available through the call centre and one stop shop network.