Agenda item

• Carole Haywood, Rotherham Partnership Manager, Resources Directorate, to report. 

Consideration was given to the report presented by the Rotherham Partnership Manager in relation to the issues within the Welfare Reform Act, 2012.  The report also provided an update to the Council and partner’s response to the Act’s provisions. 

The objectives of the Act were considered: -

• Welfare budget savings;
• Improve work incentives by ‘making work pay’;
• Reduce welfare dependency;
• Reduce the complexity of the benefits system by bringing together the majority of benefits in a new “universal credit” for people of working age.

The report outlined key changes within the Act. 

The local impacts of the provisions were outlined.  Particular emphasis was given to so-called ‘multiplier effects’.  These included: -

·         Impact on some of the most vulnerable in the Borough;

·         Insufficient jobs available for people who were successfully “incentivised” back into the labour market;

·         A conservative estimate of the cost to the Rotherham economy in reduced benefit payments was £28m by the end of March 2015.  It was thought likely that this amount would be much higher following  the impact of ‘multiplier effects’;

·         The impact would be greatest on families with children;

·         Would increase the number of children living in poverty;

·         Would have the greatest impact on the most deprived areas.

The Rotherham Partnership Board had convened a Task Group to co-ordinate a response to the Act’s provisions.  This would involve the development of an action plan, the identification of a range of activities to mitigate the risk and impact for organisations and the community.  A strategic reference group would oversee this work and to look at the required policy and resource decisions.

The submitted appendix began to capture the range of organisational and community impacts, many of which would have associated risks and uncertainties.

Initial work within communities had already begun.  This included a community drop-in session on housing benefit changes at Kimberworth Park.  The interest arising from this session had prompted efforts to co-ordinate a communication strategy, develop a training programme for front-line workers and submit a bid to the Department for Work and Pensions. 

The presentation generated much discussion between members of the Improving Lives Select Commission, and the following issues were raised: -

• Helping all members of the community to access the benefits they were entitled to.  Work had been undertaken to identify and work with groups that did not access their entitlements.
• Impact of multiplier effects;
• Role of the Council in communicating the provisions to the Rotherham community.

Resolved: -  (1)  That the report be received and its content noted.

(2)  That a publicity campaign and communication plan be produced in relation to the provisions of the Welfare Act, 2012.

(3)  That further work is undertaken in relation to ensuring there is sufficient capacity to provide information, advice and guidance to members of the community.

(4)  That a further report is presented to a future meeting of the Improving Lives Select Commission in relation to the impacts on children and families. 

(5)  That proposals for Council Tax and Housing Benefit Schemes be considered at the earliest opportunity.