Agenda item

Impact on Housing following Government Budget Announcement

Minutes:

The Committee gave consideration to the report and appendices (at pages 36 – 41) as delivered by the Head of Community which should be read together with these minutes as a composite document.

 

She reported that the requirement for social housing rents to be reduced by 1% served to undermine the HRA Business Plan and that work was being undertaken in partnership with consultants to forecast any impacts and adjustments. With reference to the documented impacts (at pages 37 - 38), it was said that a review of this Council’s housing policies was needed in order to carefully manage its obligations in its capacity as a landlord. She stated that the proposal to extend the Right to Buy scheme to registered providers raised concerns in respect of an increasing diminution of stock vis-a-vis an increase in housing demand thus impacting on homelessness and that the policy hitherto affording tenants lifetime tenancy options required a reconsideration.

 

The proposed changes to welfare benefits implicating housing services detailed in the report were also said to be of concern, most notably in respect to changes to retrospective housing benefit regulations (at page 40) and the impact this will have on vulnerable residents’ claims. It was also announced to Members that the introduction of the housing element of the Universal Credit (UC) scheme in respect of 18-25 years was due to be implemented in this Borough from January 2016.

 

Councillor L A Bentley sought clarification as to age-bracket of those to due to receive a reduction in credits. The Head of Community advised that those aged 18-25 would be the first tranche of affected individuals whose reduction in credits would be contingent on their circumstances.

 

Councillor Ms A R Bond raised a concern regarding the lack of advisory services available to residents within the Borough, citing the increased workload upon the Helping Hands Advice Centre(s) in the Borough. Councillor J W Boyce stated that an open-bid procurement process was to be undertaken to replace those services whose contracts had lapsed once a gap-analysis of advisory services has been completed.

 

Councillor J W Boyce enquired as to the feasibility of rent conver-gence/s considering simultaneous reductions in rental rates. The Head of Community advised that rent convergence/s was now a redundant ten year target due to the recent changes in legislation. The Member therefore requested that an additional report be brought to this Committee exploring the specific implications of this subject-matter once the central Government’s intentions where more clearly defined.

 

Councillor J W Boyce requested that risk implication indicator ‘CR1’ be added to the report (at page 41). He further opined that the recent announcements would significantly disadvantage those individuals who were not in work and, or, otherwise financially-illiterate, stating that an affordable provision of housing was preferentially required as opposed to intervention in the housing market on the part of the government.

 

Councillor Ms A R Bond enquired as to whether the Chief Executive or the Leader of the Council had responded to a request for assistance by the Chairman of the Helping Hands Advice Centre. Councillor S B Morris advised that no formal approach had been made by the Helping Hands Advice Centre for service-delivery assistance although pro-active steps were being taken by this Council to arrange a meeting.

 

RESOLVED THAT:

 

The report be noted and the review of the Rent policy be supported once further details were known of the impact on legislative changes.

Supporting documents: