Agenda item

Report of the City Treasurer

9.1       The committee considered a report that provided an overview of DHP applications received and decided in the period 1 April 2016 to 31 March 2017.  Information was provided on the tenure of applicants and the reasons and total spend for agreed claims.  The report also detailed the average weekly award and duration for the different categories of DHP.  It also summarised the process for deciding claims and the verification measures undertaken.

9.2       The committee asked questions on the following issues:

·           The proportion of claims determined by Capita

·           The proportion of claimants impacted by the benefit cap having to re-submit claims after an initial six month award is made?

·           Whether the City Council requires applicants to submit bank statements as part of the claims process?

·           How delegated decisions are made and the level of scrutiny by managers of such decisions

·           Whether there have been any applications for judicial review of the Council’s DHP policy

9.3       Gwyn Thomas, senior benefits policy officer, informed the committee that as housing payments in the form of extra financial assistance with rent is discretionary the determination of applications cannot be outsourced to Capita and is undertaken by a small team of five officers within the Finance Team which he manages.  He explained that consideration and determination of applications is dealt with by individual officers rather than an officer panel.  He does not review each decision made although on-going spot checks are undertaken.  He advised that he does review decisions which are informally challenged whilst another officer scrutinises those cases that are formally challenged.

9.4       A high proportion of agreed claims are submitted by residents that are affected by the overall weekly benefit cap.  The purpose of a DHP award will be to support work by giving extra help with rent payments for a short period.  Successful applicants will be expected to take the steps needed to increase the amount that they can pay towards rent in the medium term in order to avoid reliance on DHP as an on-going solution.  It can take longer than 6 months for some applicants to find work and be in a position to pay their rent without support.  Where applicants can demonstrate that they are working towards such a solution the Council will consider making an award for a further 6 months.

9.5       Since 2015, when the policy was last reviewed, all DHP applicants are required to provide statements covering at least three recent and consecutive months for every bank, building society and Post Office account held. Officers dealing with DHP claims scrutinise the statements for any indication of undeclared income and further undeclared accounts where funds are being transferred to and from. The statements are also studied for signs of unusual spending patterns that suggest the applicant is living beyond their declared financial means. Any discrepancies are queried and referrals made to the DWP Fraud and Error Service where appropriate.  The only time when this requirement may be waived is where a renewal claim is submitted.  Where an application is refused and an appeal is requested the Council requires applicants to provide statements covering a further three months before it will list a case for consideration by the DHP panel.

9.6       Members expressed concern that bank statements submitted by appellants to the DHP Appeals Panel often reveal large instances of cash withdrawals but no clear evidence of rent payments being made which suggest that some residents are making rental payments in cash which can leave them at risk of not being protected compared to those who pay by direct debit or standing order.

9.7       With regards to judicial review, Mr Thomas advised that although two organisations had previously informed the Council of their intentions to apply for a judicial review of the Council’s policy none were submitted.

9.8       The Committee noted that the policy sets out that DHP awards are only made for fixed periods and the Council cannot guarantee or sustain open-ended awards.  Members commented on the fact that some residents submit repeat claims and do not understand that the scheme it is to help households in the short term.  Mr Thomas advised that the Council was re-emphasising this message.  He explained that the Council receives an annual allocation from the central government to use for DHP.  Any funding that is unused is returned.  Whilst last year there was slightly more funding than claims agreed this year the funding has been significantly reduced so the issue of repeat claims will need to be addressed.

9.9       ACTIONS: The committee has agreed to write to the chief executive to request sample checking of officer delegated decisions by the senior policy officer. (Action for: Audit & Performance Committee)