The Director of Regeneration, Housing and Planning submitted a report which updated the Committee on the potential impact of Welfare Reform across both the social and private sector and highlighted the current position in Wirral with regards to under occupation in the social rented sector.

For the private sector the focus was to prevent financial hardship and potential homelessness arising from Welfare Reform through early intervention, payment of Discretionary Housing Payments and working with tenants to find affordable and sustainable accommodation.

The report also highlighted work being undertaken by the Council in responding to under occupation across both sectors, focusing in particular on the work being undertaken in the social sector to develop a pilot scheme which would aim to tackle and reduce under occupation in Wirral. The scheme developed would target those residents registered on the Wirralhomes housing register and awarded an Urgent Need Status for under occupation, which under the current allocations policy meant that they had two or more spare bedrooms. By targeting these residents, it was anticipated this would free up some larger social properties for families in need and who might be overcrowded, and also reduce the threat of financial hardship when the Welfare Reforms were introduced.

Addressing under occupation would promote the Council’s Corporate Priorities in terms of support for vulnerable people to maintain their independence in the community, prevent and alleviate homelessness and to make best use of existing housing stock across all sectors.

Responding to comments from Members, the Director, Lisa Newman, Housing Strategy Manager and Catherine Green, Rehousing Services Manager, elaborated on some of the detail of the impact in Wirral and explained the system for prioritising those in most need. Individual circumstances would be different and until the Welfare Reform Bill was finalised it was difficult to take account of its implications. Out of 15,434 units of the social housing stock (which the Council had been provided information about to date), 5% would be affected by the Welfare Reform reduction in benefit of up to 25% due to occupying a property that had two or more spare bedrooms, and 15% would be affected in benefit of up to 14% due to occupying a property that had one spare bedroom. They explained the use of Discretionary Housing Payment and the development of a pilot scheme to assist those households that wanted to move into smaller accommodation which met their needs.

The Chair commented that the myth that the elderly would be affected could be put to rest as the legislation only applied to those of working age. He suggested that a summary of the report / crib sheet should be circulated to all members to assist them with their casework and that it would be an ideal piece of work for a scrutiny review in the forthcoming municipal year.

It was then moved as an addition to the recommendation in the report by Councillor Whittingham and seconded by Councillor Hackett –

“That Committee notes the report and welcomes the work being done to assist tenants affected by the ‘bedroom tax’.

However, Committee shared the National Housing Federation’s concern about the impact the ‘bedroom tax’ will have on tenants and vulnerable people deemed to be under occupying, some of whom may already be struggling to make ends meet.

Committee also shares the National Housing Federation’s concern about the impact of the ‘bedroom tax’ on the tax payer, because if a tenant moves to a smaller property it may be that the rent for the smaller property is more expensive, which, if that’s the case could well place additional pressure on the Housing Benefit Bill.

Committee also agrees with the Deputy Leader of the Liberal Democrats, Simon Hughes MP, on tenants who are deemed to be under occupying that ‘it is not practical to insist that they move when there is nowhere smaller to move to’.”

The addition to the recommendation was put and lost (4:6).

Resolved –

(1) That Committee notes the current situation with regards to the potential impact of Welfare Reforms and under occupation in the social sector and the work being undertaken to mitigate this.

(2) That a summary of the report / crib sheet should be circulated to all members to assist them with their casework and that it be added to the work programme as a scrutiny review in the forthcoming municipal year.