Agenda item

To consider any Motions for debate in accordance with Council Procedure Rule A9.

Report attached.

The following motion was moved by Councillor Tim O’Kane and seconded by Councillor Jenny Molineux under Council Procedure Rule A9:-

“That this Council notes that Universal Credit (UC) is a single monthly payment which replaces six working age benefits (known as legacy benefits).  These are Housing Benefit (HB), Income Support (IS), Working Tax Credits (WTC), Child Tax Credit (CTC), Employment and Support Allowance (Income-related) and Job Seekers Allowance (Income-related).  It supports residents on low incomes who are both in and out of work.

Universal Credit has been in Hyndburn since 2015 but on a mainly limited scale.  However, the numbers of residents moving onto Universal Credit from 2015 have been restricted to new claimants and straightforward cases.  The pilot for Hyndburn commences in February 2018 and the roll out of the full service of Universal Credit is a new entirely online-based system and claimants must apply for and manage their claim online.  It also brings in a wider range of claimants including more complex cases.  It affects claimants when they make a claim for the first time or have a change in circumstances that means their existing claim for one of the legacy benefits has to be cancelled.

Hyndburn is one of the areas subject to the rollout of Universal Credit full service. The delivery of the new service has been an area of particular concern across the country and was subject in the last parliament to an investigation by the Work and Pensions Select Committee.

As a result, and while the DWP and Job Centre Plus are the agency responsible for managing the change, the Council is committed to pro-active and continued work with key stakeholders and partners to ensure that as much support is provided to residents as possible to help achieve a smooth transition to the new service.

However, this Council has a number of concerns about Universal Credit

·         The wait times between the date of application and date of assessment. There is a built in waiting period of 6 weeks before Universal Credit is awarded and this creates hardship for residents. Any delay in DWP processing times exacerbates this hardship still further.

·         The level of deductions applied to monthly payments to clawback advance payments and sanctions can be high, leaving residents with little money to cover basic income needs for their families for the weeks ahead.

·         The high number of Universal Credit claimants that have been subject to sanctions in Hyndburn.

·         That the provision of housing  costs support for short term temporary accommodation for Hyndburn’s homeless population is not an appropriate fit for Universal Credit and should be returned to and covered by Housing Benefit at the earliest opportunity.

This Council resolves that:

The Chief Executive write to the following to register these issues and request that solutions are explored which would improve the design and delivery of Universal Credit which would mitigate impacts for low-income, working age residents in the borough;

1.         The Rt. Hon David Gauke MP, Secretary of State for Work and Pensions.

2.         Debbie Abrahams MP, Shadow Secretary of State for Work and Pensions and MP for Oldham East and Saddleworth, and Graham Jones, the MP for Hyndburn.

3.         The Local Government Association (LGA).”

After a debate, the motion was put to the vote and declared carried.

Resolved                           (1)   That this Council notes that Universal Credit (UC) is a single monthly payment which replaces six working age benefits (known as legacy benefits).  These are Housing Benefit (HB), Income Support (IS), Working Tax Credits (WTC), Child Tax Credit (CTC), Employment and Support Allowance (Income-related) and Job Seekers Allowance (Income-related).  It supports residents on low incomes who are both in and out of work.

                                                   Universal Credit has been in Hyndburn since 2015 but on a mainly limited scale.  However, the numbers of residents moving onto Universal Credit from 2015 have been restricted to new claimants and straightforward cases.  The pilot for Hyndburn commences in February 2018 and the roll out of the full service of Universal Credit is a new entirely online-based system and claimants must apply for and manage their claim online.  It also brings in a wider range of claimants including more complex cases.  It affects claimants when they make a claim for the first time or have a change in circumstances that means their existing claim for one of the legacy benefits has to be cancelled.

                                                   Hyndburn is one of the areas subject to the rollout of Universal Credit full service.  The delivery of the new service has been an area of particular concern across the country and was subject in the last parliament to an investigation by the Work and Pensions Select Committee.

                                                   As a result and while the DWP and Job Centre Plus are the agency responsible for managing the change, the Council is committed to pro-active and continued work with key stakeholders and partners to ensure that as much support is provided to residents as possible to help achieve a smooth transition to the new service.

                                                   However, the Council has a number of concerns about Universal Credit.

·         The wait times between the date of application and date of assessment.  There is a built in waiting period of 6 weeks before Universal Credit is awarded and this creates hardship for residents.  Any delay in DWP processing times exacerbates this hardship still further.

·         The level of deductions applied to monthly payments to clawback advance payments and sanctions can be high, leaving residents with little money to cover basic income needs for their families for the weeks ahead.

·         The high number of Universal Credit claimants that have been subject to sanctions in Hyndburn.

·         That the provision of housing costs support for short term temporary accommodation for Hyndburn’s homeless population is not an appropriate fit for Universal Credit and should be returned to and covered by Housing Benefit at the earliest opportunity.

                                            (2)   That the Chief Executive write to the following to register these issues and request that solutions are explored which would improve the design and delivery of Universal Credit which would mitigate impacts for low-income, working age residents in the borough:-

                                                   1.       The Rt. Hon David Gauke MP, Secretary of State for Work and Pensions.

                                                   2.       Debbie Abrahams MP, Shadow Secretary of State for Work and Pensions and MP for Oldham East and Saddleworth, and Graham Jones, the MP for Hyndburn.

                                                   3.       The Local Government Association (LGA).