Agenda item

Indicative Impact for Westminster and London of Government Manifesto Pledges in relation to Welfare Changes and Housing Reform

A PowerPoint presentation would be provided by the Executive Director for Growth, Planning & Housing.

Minutes:

6.1     The Committee received a PowerPoint presentation from the Executive Director for Growth, Planning & Housing on government housing and welfare policy changes and how these would directly impact on the activities of the Council’s housing service and indirectly impact on other services.

 

6.2     The presentation provided an opportunity for the Committee to gain an understanding of the changes and the potential impacts and to ask for further explanations/analysis to be provided.  It also provided an opportunity to challenge officers to consider whether all reasonable actions are being taken to mitigate the adverse impacts of the changes.

 

6.3     It was noted that the Council’s new Housing Strategy was intended to be published in November but given:

 

·       the impacts of these national policy changes on some of the key announcements and policies in the draft strategy,

·       that there are still a lot of the details about how these changes will be implemented that the Council doesn’t have, and

·       that a Housing Bill that will make many of the changes will be introduced into Parliament in October

 

The current draft strategy is no longer appropriate.  Instead of producing a strategy at this stage the Council will publish a “Direction of Travel” statement which will highlight themes and general approaches that the Council will be taking until it is in a position to publish a strategy of the kind originally intended.

 

6.4     In response to questions Andrew Barry-Purssell, Head of Spatial Design and Environment, confirmed that until the full impacts of the legislative changes are known and a final strategy has been approved none of the planning policy proposals in the new draft strategy would be taken forward.

 

6.5     The Committee then discussed policy changes and the Council’s response to them including proposed actions to mitigate the adverse impacts and its lobbying approach.

 

6.6     The Committee noted that the benefit cap reduction and Local Housing Allowance freeze would likely result in additional homeless acceptances from 2016 or 2017 which would likely result in longer waits in increasingly expensive temporary accommodation.  Officers were asked whether the Council could be more proactive to reduce the demand for temporary accommodation such as by encouraging residents at risk of homelessness to move to more affordable housing outside of London.  Mr Denton advised that the Council had been cautious compared to other London local authorities in this respect.  The Committee was informed that the London borough of Brent has a settlement officer based in Birmingham whose role is to help Brent residents move to the area.  The duties involves offering a wide range of support including directing people to employment opportunities and helping enrol children in local schools.  Barbara Brownlee, Director of Housing, explained that one of the consequences of remaining in temporary accommodation is that households can experience a number of moves as it is often difficult to retain such property.  In Westminster those families that have moved out of borough have tended to have initiated the move.  She advised that the Housing department does intervene early on to prevent a household becoming homeless and as part of an intervention officers will see if the family has a connection elsewhere.  Members considered that in order to provide constructive views on this issue it would be beneficial to receive further information on the proactive resettlement approaches of other London local authorities.

 

6.7     Officers were referred to the fact that the definition in the presentation relating to the Discharge into the Private Sector does not include reference to the quality of the property and it was suggested that this should be inserted.

 

6.8     Officers were asked whether there was merit in challenging the government on the homelessness duty in relation to the ‘local connection’ outlined in Section 193 of the Housing Act 1996.  Concern was expressed about the requirement for the Council to take responsibility for people presenting themselves as homeless where no local connection elsewhere allegedly exists.

 

6.9     The Committee also reflected on how the Council should mitigate the impact of the annual 1% reduction in social rent from 2016/17.  It was noted that this would have an adverse impact on Westminster’s Housing Revenue Account over the next 30 years.  Mr Denton advised that while the policy changes will impact on the Housing Capital programme they should not jeopardise the Council’s regeneration projects.  They simply may need to be undertaken differently.  The Committee discussed whether the Council’s housing renewal programmes should be modified either by extending ‘renewal cycles’ or making changes to specifications standards.  Members concluded that in order to provide an informed view on this matter it should be provided with information on the CityWest Homes Standard, the proportion of homes that meet the standard, and how it differs from the decent homes standard.

 

6.11    With regard to the extension of Right to Buy legislation to Housing Association tenants, Members were concerned to hear that some housing associations had advised that they would sell off their properties as they became vacant.  Officers were asked what lobbying activities were being undertaken with the DW P and the Treasury on this subject.  Mr Denton advised that he was only aware that one housing association, Genesis Homes, had made such a statement.  This had not been supported by either their Board or Management team. 

 

6.12    Officers were asked in relation to “Pay to Stay” whether the Housing Income Assessment would be undertaken at national level (HMRC) or locally and who would pay for this.  Members were advised that this was unknown at present.  Members asked whether any modelling had been undertaken on the impact of the £40,000 income threshold on different family sizes.  Concern was expressed that households with a number of children could be more adversely affected leading to an increase in child poverty.  Officers advised that preliminary indications suggested that 7-8% of households may be affected but specific figures were not available.

 

6.13    Members commented that the presentation did not include the impact of the removal of eligibility for housing benefit for those under the age of 21.  Helena Stephenson, Senior Service Transformation Manager, informed Members that this would particularly impact young people moving out of hostel accommodation and could result in an increase in homeless numbers.  The Council was undertaking work to try and mitigate this impact.

 

6.14     RESOLVED: 

 

1.          That the report be noted.

 

2.              That a task group be established to scrutinise the Housing Bill and its impact on Westminster in order to help inform the Council’s mitigation actions and lobbying activity.

 

6.15    ACTION:

 

1.     Circulate a copy of the Powerpoint presentation to Committee Members (Action for Anne Pollock, Scrutiny Officer)

 

          2.   Provide the Committee with further information on the proactive resettlement approaches of other London local authorities (Action for Ben Denton, Executive Director for Growth, Planning and Housing)

 

          3.   Provide the Committee with information on the CityWest Homes Standard, the proportion of CWH homes that meet the standard and how this compares to the decent homes standard (Action for Ben Denton, Executive Director for Growth, Planning and Housing)