Housing and Community Safety Select Committee

Review of Welfare Reform and Financial Inclusion

Outline Scope

Scrutiny Chair (Project Director):
Cllr Julia Cherrett / Contact details:

01642 785473
Scrutiny Officer (Project Manager):
Peter Mennear / Contact details:

01642 528957
Departmental Link Officer:
Julie Nixon, Head of Housing / Contact details:

01642 527072
Which of our strategic corporate objectives does this topic address?
Under the Stronger Communities theme of the Sustainable Communities Strategy there is an Ambition to improve Financial Inclusion.
The Strategy’s Economic Development theme and aims are also relevant.
What are the main issues and overall aim of this review?
Welfare reform is a key issue for the local community, Council and partner organisations. A number of key changes have taken place in April 2013 (including Council Tax Support, Housing Benefit, and Social Fund) and further changes are planned with the introduction of Universal Credit.
The review will consider the early impact of welfare reform on local agencies, whether any amendments to policy and operational services are required as a result, and what plans are in place to project the future impact on the Borough.
Further consideration will be given to the wider aspects of financial inclusion and tackling poverty. A range of factors are involved in this work including food poverty, including food banks, fuel poverty, illegal money lending, and provision of credit unions and advice services.
The review will consider the overall approach to improving financial inclusion in the Borough, whether a co-ordinated approach is in place, and whether SBC resources are effectively targeted to ensure the most benefit. This will include consideration of the performance of services provided or funded by both SBC and partners.
SBC has a Welfare Reform Board made up of key services and the review will both report its outcomes to the Board and be informed by its work.
Due to the nature of the review, the Committee may report to Cabinet on issues/policies that arise during the period of the review and that require a response, in addition to a final report.
This review has close links with the separate review of Child Poverty, and links to the Further Education/Employability review.
The Committee will undertake the following key lines of enquiry:
What has been the impact of welfare reform to date following implementation of Housing Benefit and Council Tax changes, and changes to the Social Fund?
What is the overall projected impact of welfare on Stockton Borough? What work is ongoing to further model the projected local impact?
What examples are there of good practice by Registered Housing Providers in supporting tenants?
How are the preparations for Universal Credit progressing?
What is the local approach to improving financial inclusion and what support is available?
Is there scope for further joint working?
Is there early evidence of a wider impact of welfare reform for example on local business activity and community safety?
Who will the Committee be trying to influence as part of its work?
Cabinet, Registered Providers of housing, key local partners including advice providers and relevant VCS agencies
Expected duration of review and key milestones:
9 months
What information do we need?
Existing information (background information, existing reports, legislation, central government documents, etc.):
ILG Report – commissioned by SBC – Local impact of welfare reform
Sheffield Hallam University Review – The local and regional impact of welfare reform
Implementation of welfare reform by local authorities, Report of House of Commons Communities and Local Government Select Committee (April 2013)
Family Poverty Framework 2011-13
New information:
ILG Report – commissioned by ANEC – Regional impact of welfare reform (due in June)
ILG Report - the Economic Impact of Reductions to Local Authority Funding and Welfare Reform (due Autumn 2013)
Thrive Research
Who can provide us with further relevant evidence? (Cabinet Member, officer, service user, general public, expert witness, etc.)
SBC Welfare Reform lead officers
SBC Welfare Rights
Stockton District Advice Information Service
(funded by SBC)
Five Lamps
(funded by SBC)
Vela Group / Other Registered Providers
SBC Housing Services
SBC Policy, Improvement and Engagement
SBC Trading Standards and National Illegal Money Lending Team
Local Credit Unions
Local Food Banks / What specific areas do we want them to cover when they give evidence?
Baseline report setting out the ‘known’ local situation and relevant SBC service provision
Information on range of people accessing services, overview of performance including benefit
Information on range of people accessing services, overview of performance
Operation of Social Fund
Approach to supporting tenants
Overview of demand on services, impact of housing benefit changes, operation of Discretionary Housing Payments
SBC approach to Financial Inclusion, monitoring performance of key contracts
Actions to tackle illegal money lending
Overview of services provided, opportunities for joint working
Overview of services provided, opportunities and SBC policy on joint working,
How will this information be gathered? (eg. Financial baselining and analysis, benchmarking, site visits, face-to-face questioning, telephone survey, survey)
Desk top analysis and discussion at Committee meetings.
Good practice from other areas will be identified.
Case studies prepared by partner organisations including CABs.
How will key partners and the public be involved in the review?
Key partners will be invited to contribute as outlined above.
How will the review help the Council meet the Public Sector Equality Duty?
The review will seek to ensure that there is no disadvantage of access to relevant services for protected groups.
How will the review contribute towards the Joint Strategic Needs Assessment, or the implementation of the Health and Wellbeing Strategy?
A key priority in the Health and Wellbeing Strategy is to ‘Ensure a healthy standard of living for all’. The review will contribute towards achieving the Objectives entitled ‘Support every resident to access the range of benefits that they are entitled to’ and ‘Lobby to establish a minimum income for healthy living for people of all ages’.
Residents affected by welfare reform and poverty may be at higher risk of mental health problems.
Provide an initial view as to how this review could lead to efficiencies, improvements and/or transformation:
Refined approaches to implementing welfare reform following experience of early implementation
Improved methods of projecting local needs
A Council strategy for tackling financial inclusion to ensure services are focussed and efficient, including an SBC policy in response to evolving local services such as food banks.

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