Issue - meetings

This report provides an update to Members on the work being done to implement the new Local Housing Allowance from April 2008 and also sets out details of the Safeguard Policy.

Advice of the Advisory Panel

That the Executive Member be advised:

(i)                 That the content of this report be noted with concern;

(ii)               That the establishment of a safeguard protocol be noted and welcomed;

(iii)             That the financial assessment of the likely impact of the LHA scheme on tenants be noted.

Decision of the Executive Member

RESOLVED:That the advice of the Advisory Panel be accepted and endorsed.

REASON:To keep the Executive Member informed of changes in legislation that impact on the processing and payment of Housing Benefit.

Members considered a report which provided an update to Members on the work being done to implement the new Local Housing Allowance from April 2008 and also set out details of the Safeguard Policy.

This report was for information only and no decision was required. The authority was due to be issued with final LHA rates by the Rent Service in early March. An assessment of the likely financial impact for customers was presented. It was reported that the final LHA rates had still not been issued and were now due at the end of March. Officers informed the committee that approximately 47.5% would see a reduction in the amount of rent they would be allowed. About a third of customers would lose up to £5 a week and two thirds would lose between £5 and £10 a week in terms of the rent allowed.

Officers further reported that a bid was due to be submitted shortly to the Department for Works and Pensions (DWP) for £100 000 to cover the budget, and that the DWP were supportive of the application as they understood the impact of the Broad Rental Market Area on York.

Board members raised concerns that the level of debt might increase with the rents being paid direct to the customers instead of to landlords, and that landlords might start to refuse to take tenants on housing benefits which could affect long term provision of private housing.

Officers reported that they would be emailing a report round to all councillors with updated figures to try to raise awareness of the two changes coming into effect from 7 April 2008. It was suggested that an Executive Summary should be sent with this report in the email.¹

Advice of the Advisory Panel

That the Executive Member be advised:

(i)                 That the content of this report be noted with concern;

(ii)               That the establishment of a safeguard protocol be noted and welcomed;

(iii)             That the financial assessment of the likely impact of the LHA scheme on tenants be noted.

Decision of the Executive Member

RESOLVED:That the advice of the Advisory Panel be accepted and endorsed.

REASON:To keep the Executive Member informed of changes in legislation that impact on the processing and payment of Housing Benefit.