Agenda item

Rose Doran (Senior Adviser – Welfare) and Nick Porter (Senior Adviser – Housing) introduced the item, which updated the Board on the LGA’s current and proposed work on housing, homelessness and welfare reform. Members in particular noted recent work on the cumulative impacts of welfare reform, and the scale of costs of temporary and emergency accommodation.

Direct impacts included the cost of benefit administration to local authorities, and it was important that the Department for Work and Pensions considered the implications of how resources were distributed. Indirect impacts were more complex, and included welfare reforms as a catalysts for behavioural change. At the previous Board members had received a presentation on interim findings of work which had been commissioned on the impacts of welfare reform. The final report had now been received, and cumulative impacts on some households would be significant, and the LGA would be taking the work forward through the industrial strategy and the inclusive growth strategy.

Members noted that homelessness had increased due to the loss of assured freehold tenancy, and therefore there had been a rise in the amount of temporary accommodation required to be provided by local authorities. Another main driver was affordability of housing, which had become a major factor in the years since the recession. There was a lack of emergency accommodation, and as a result councils were hosing people in bed and breakfasts, which was expensive. Universal Credit posed a new challenge and cost risk to councils, and some authorities had seen spikes in rent arrears. The LGA was looking at possible innovations in temporary accommodation, and was working with the private rental sector, councils and the government to explore options.

In the discussion which followed, Members raised the following points:

·         The LGA would work closely with partner organisations on generating a narrative on social justice, and advocating for existing reforms. There should also be more partnership working with government, and lobbying that taking money out of housing benefit was not sustainable, and would just push the cost elsewhere.

·         Authorities who were early adopters of Universal Credit should be in regular contact with the LGA, so when issues arose they could be used as evidence when lobbying the government.

·         There were a number of transitional issues, such as design of Universal Credit, and waiting times, and it was hoped a specific piece of work could be undertaken with DWP to look at issues which were arising.

·         Increasing the amount of house building was also vital in reducing homelessness and the number of residents in temporary accommodation. The LGA should continue to lobby on the housing bill, and this work would be primarily led by the Environment, Economy, Housing and Transport Board. About 300,000 homes were required to be built each year for a decade to impact on cost.

·         The rural impact of homelessness should be considered as a significant issue. Temporary accommodation was not always available in the same town where a family were located, and they may be forced to change school or job as a result. There was also the issue of rural public transport. In urban areas there was a similar high cost to councils in taxi fares when moving people to temporary accommodation.

·         A piece of work on indirect costs of welfare reforms would be taken forward, considering the knock on impact of out of area placements or unsuitable accommodation. Officers would work with colleagues from the Children and Young People Board on the costs of homelessness, to set out the scale and shape of the problem.

Decision

The Board noted the update and comments would be taken on board when planning the LGA’s future priorities and key policy lines related to homelessness, housing and welfare reform.