Council Tax Benefit Replacement; Progress, of Sorts...

We have a new Portfolio decision, re-announcing the consultation on how to replace Council Tax benefit with a local scheme as required by government. The consultation itself hasn't started yet, that's due on 3 September, about 4 weeks later than it was due to start. The irony of course is that the consultation period is only 8 weeks long when government guidelines suggest 12 weeks as a minimum. They are again justifying 8 weeks on the basis that they won't have time to formalise the scheme otherwise but, if they had only got the consultation out on time instead of just dicking about...

The decision does include important information about some of the main proposals for the scheme. Some of these are pretty horrific and include;

• A maximum discount of 80% liability. Yes folks, NCC is taking us right back to 1990 where everyone 'has to make a contribution' of at least 20% of their council tax. That's a massive hole in the budget right there because it won't be collectable.
• Almost as bad is installing a cap on your discount at Band B rate. This is preposterously low. It is likely that many authorities will attempt to focus cuts on higher value properties but remember, Band D is supposed to be the mid-point of Council Tax liability.
• Reducing the upper capital limit from £16,000 to £6,000. This is the sort of amendment I feel able to support, or at least disagree with the least. 
• Removing second adult rebate. Frankly hardly anyone claims this so I doubt that will make a huge amount of difference.
• Removing backdating. This is simply petty and small-minded. NCC is planning to make savings at the expense of the vulnerable who might have problems making a claim e.g. those with mental health issues and those who are unaware of their entitlements. It's a fucking disgrace.
• NCC will continue to fully disregard all war pensions. I'm sorry but this cannot be justified and appears to have been included purely for ears of PR reasons. This is not something they have to do now so why they are continuing to do so in the extreme circumstances of the new local scheme and its attendant cuts is beyond me.

So, there's only really one aspect proposed above that is anywhere near reasonable. The decision also repeats as fact that NCC will lose over £6m in central government support. I still haven't received a response to my FoI request on how this was calculated and until I do I cannot agree that the loss would be any more than £4m. Given the drastic nature of the cuts as described above I can only assume that NCC is intending to make larger cuts than is required in order to bail out other areas of expenditure, then blaming central government. Another PR bonus.

One other thing. Whoever drafted that portfolio decision talks throughout about people claiming Jobseekers Allowance, Employment Support Allowance and Housing Benefit etc. However, when this new scheme arrives in 2013, these benefits will be replaced by Universal Credit. Not mentioning this does suggest that the author has arses and elbows issues.

Compare NCC's approach to Broxtowe Borough Council's. Now I realise that the two authorities are very different in size and economics but BBC have proposed keeping the council tax support scheme the same as Council Tax Benefit is now and covering the loss in central government grant by increasing charges on empty properties and second homes. Now Broxtowe probably has significantly more scope to do this than NCC but NCC doesn't appear to be taking such measures at all. That's simply not good enough.

So watch out for the consultation going live and do respond. NCC is dumping the problem on the worst off and that must not be allowed to happen. If it does I suggest you all move to Broxtowe.

Replacing Council Tax Benefit

As you've probably heard, Council Tax benefit is to be abolished from next year and councils are being charged with devising their own local schemes to replace it. Big issues include the fact that central government will be cutting support for the new schemes by 10% of what they are paying now and that, for rather obvious political purposes, councils are being told that pensioners' entitlements must be protected. This of course means that if the cut in central government funding is passed onto claimants in its entirety it will fall disproportionally on those of working age.

Unfortunately, this appears to be what NCC is planning on doing and they seem to be buttering us up for such an eventuality, see this article in the Post for an example. It also matches up with what I am hearing is being discussed in local Labour Party meetings.

The thing is, there is absolutely no reason why any cut has to be ring-fenced to the the benefits budget. It could be covered wholly or in part by cuts elsewhere, this is a decision that NCC is supposed to make. Instead they appear to be blaming it entirely on central government (whose fault it is mostly, granted) yet they have the power to mitigate the cuts if they choose to do so. A similar situation occurred with Supporting People. NCC claimed the cuts were forced on them but the reality wasn't quite as simple as this; again funding for Supporting People was no longer ring-fenced so councils could choose to spread the cuts over other service areas. NCC chose not to.

NCC has also announced an 8 week long consultation process about the changes. Government guidelines normally recommend 12 weeks for a consultation exercise but NCC claims this won't give them enough time to draw up the draft scheme. This consultation was supposed to start on Monday 6 August according to the above Post article and this page on NCC's website, although the portfolio decision says the 9th. Either way, at the time of writing this, details of the consultation have yet to be posted on the website.

This consultation needs to be closely watched and responded to. You might be interested in a Facebook group that has been set up to campaign against the cuts.

I set out a few issues below which I suggest people think about. I've not thought them through fully myself as yet but it's something to get the ball rolling -

• The idea that the cut in funding should be ring-fenced should be resisted strongly. It's probably unlikely that we could ever persuade NCC to offset the cut entirely elsewhere but there's no reason why it shouldn't be in part.
• The current national Council Tax Benefit scheme is hardly generous as a starting point so any cuts to the scheme will be hitting the poorest hardest.
• NCC needs to remember that, if cuts mean that Council Tax liability increases for the worst off, income-replacement benefits such as JobSeekers' Allowance will not be increased to make up the difference. It is therefore likely that such extra liability will simply not be paid and costs for enforcement will increase. It is a false economy to implement a scheme that will simply leave a hole in the budget.
• NCC is claiming that the cut in central funding will leave the council £6m worse off. I've asked for a copy of the analysis that produced this figure but obviously I haven't got it yet. Last figures for CTB expenditure I saw was around £31m for 2010, which could be in the region of £40m by 2013 with no change. As such, until I see all the figures, I can't see why a cut of anything more than around £4m is expected.
• NCC needs to be creative in its design of the new scheme. I've heard rumours that nobody will be entitled to 100% benefit anymore which would be a huge mistake. NCC needs to consider placing a higher burden on those with savings, possibly a more aggressive income taper etc before simply applying an across the board added liability to even the very worst off who currently get 100% benefit.
• NCC has an appalling record of considering the effects of policy on disabled people. It seems to believe that the only people classed as 'disabled' are those in receipt of Disability Living Allowance. If this attitude continues it could put them in breach of the Equalities Act, as the act has a much wider definition of people classsed as disabled. In the past, people who seem to have lost out because of this blinkered mentality probably most includes long-term recipients of Incapacity Benefit/Employment Support Allowance.

That's a start, please do feel free to add any ideas in the comments and please do watch out for the consultation and respond to it when it appears.

Addendum; Comprehensive report on the effects of the 10% cut released by Institute for Fiscal Studies/Joseph Rowntree Foundation. Their section on possible options (see p68) covers similar ground to some of the points raised above and adds the suggestion of concentrating cuts in benefit on owners of larger higher band properties. Unfortunately it doesn't go into the vexed question of how much each authority is going to lose, relying on central government data which I understand is a key area of challenge under NCC's assessment. Worth a read anyhow if you have the time (note, pretty big file).

Quick! Band Aid For the Housing Benefits Service!

Following my recent pieces on the decline and fall of NCC's Housing Benefits service (including the revelation that the most recent figures put them as second worst in the country for processing new claims), all of a sudden NCC goes galloping in with a 'solution'.

Yes they are running to a private sector agency to get a load of temporary staff. Apparently, £112k gets you 12 staff for 12 weeks, an equivalent cost of £40k/yr for each one. That will include employer's NI payments of course but you can bet it doesn't include any pension contributions like a directly employed staff member would be entitled to. I'd guess a directly employed Benefits Processing staff member would be on around £20k so actual cost of their employment would be around £26k. So in round numbers the agency staff are costing something like half as much again as a directly employed staff member.

Like I said before, they're just lurching from crisis to crisis.

In other Housing Benefits news, the ever generous government has been handing out cash to help councils 'ease the transition' of the HB cuts. This money is not designed to be paid out as, say, part of the DHP scheme but to be used for infrastructure to deal with the fallout.

Slightly chillingly, look at the first item the government suggests as an intended use of the money -

"For example, preventing homelessness, negotiating with landlords, supporting people who need to move, and giving money advice."

Hasn't the government been telling us that nobody will be made homeless by these cuts?

Nottingham is getting the princely sum of £57,992 for 2012. That's just over half what NCC are planning on frittering away fixing their current problems. Doesn't bode well.

Newstead Abbey Placed on 'Watch' By Heritage Group

Newstead Abbey features in the 2012 'Watch' list of threatened heritage sites compiled by the World Monuments Fund.

Despite its location in NottinghamSHIRE, Newstead Abbey is owned and run by the City Council after having been covenanted to it's forerunner the Corporation of Nottingham by the previous owner Sir Julian Cahn in 1931. Its stewardship was recently criticised following a major cut in opening hours due to budget cuts, which also resulted in the loss of a number of jobs.

WMF say -

"Newstead Abbey has suffered significant deterioration, and a strategy for its conservation and long-term maintenance is greatly needed. Restoration and renewed interpretation would benefit the local community and other visitors and could reinforce the historical connections to one of the world’s greatest poets."

Newstead has also been on the English Heritage 'Buildings at Risk' register since 1998 and there is a £1.35m restoration plan in place which appears to be making slow progress, especially considering how long concerns have been raised for.

The reduced opening hours will surely mean loss of interest in the Abbey by the public which will hardly increase the chances of success in the appeal for funds. I doubt it's what Sir Julian intended when he gave the abbey to the city either.

Hat tip - Nottstalgia forums

NCC Brings in ATOS Style 'Independent' Assessment for Disability Bus Passes (And Sneaks In Some Cuts to Eligibility)

People with certain disabilities are entitled to a Mobility Citycard which gives you free travel on buses and trams. This is part of the national scheme plus local discretion to include travel at peak times. If you get the higher rate of the Mobility Component of Disability Living Allowance you can apply without getting your GP to sign a declaration, if not you have to bother your doctor.

NCC has decided to change this though and has now decided to commission 'independent' assessment of disability by a private company. This is expected to cost the Council £480k over three years.

Such a tactic has echoes of national policy in that examinations for Employment Support Allowance are carried out by ATOS, a private company who has come up against considerable criticism.

The rhetoric involved is not too dissimilar as well. The Portfolio Holder decision (in the name of Jon Collins so don't expect him to have had any input into it or to know anything about it) justifies the cost on the basis that the move is likely to result in drop in eligibility of 15%, meaning a saving of £710k over the time of the contract. In other words, disabled people are swinging the lead and only the free market can save us. Sound familiar?

Another similarity is that there is a reduction in the eligibility rules being snuck in as part of the new arrangements. Disabled users will no longer get free travel in peak times, i.e. before 9.30am or after 11pm so those who have a job and/or a social life can obviously go and whistle. In addition, some disabled people will lose their right to have a companion travel with them. This is justified on the basis that the Mobility Component for DLA includes a payment for this. Except of course it doesn't really.

It's quite likely that it is these reductions in eligibility that will result in the expected savings rather than the use of the 'independent' assessor so why not ditch that and keep some of the eligibility?

Oh and the final comedy moment - Cllr 'Calamity' Jane Urquhart has disclosed that her own GP works for the appointed company, called 'Fit4Work' (can't find any definite info on these, mainly because 'Fit4work' is such an unimaginative name for a company involved in medical assessments that there's loads with that name). As such, to avoid any possibility of a conflict of interest she avoided taking the decision herself and gave it to JoCo, a well known safe pair of hands. Apparently they already do the Blue Badge stuff.

Cuts to Sports and Leisure Discounts - Confusion Reigns

Cllr Trimble has delivered a portfolio holder decision to reduce the range of concessions available for use of the City's sports and leisure facilities. Unfortunately, it's a case study of what happens if you don't get someone who knows what they're talking about in to help.

According to the decision and its accompanying report the following city residents could get a 50% discount under the old scheme-

Over 60 or under 16
In receipt of Jobseekers Allowance
in receipt of Working Tax Credit, Housing Benefit or Council Tax Benefit
In receipt of Income Support
In receipt of 'disability allowance'

Already this differs to what is said on the website because that includes students and also includes Disability Living Allowance, Severe Disablement Allowance (an obsolete benefit almost entirely phased out) and Incapacity Benefit. There is actually no such benefit as 'disability allowance' and Incapacity Benefit is being phased out in favour of Employment Support Allowance, which isn't mentioned.  The website also makes clear that only the Income Based version of JSA counts and not the National Insurance based version which isn't means tested. So it's already a bit mixed up.

The proposed new rules, which council officials will no doubt be told MUST be followed strictly and to the letter in these 'difficult times', say the following city residents are entitled to concessions -

Those who have reached pension age or aged under 17
In receipt of Jobseekers Allowance
In receipt of 'disability allowance' or 'registered disabled' depending on which part of the decision you look at

Now as we've already said, 'disability allowance' doesn't exist so we have no way of knowing whether this includes people getting DLA, Incapacity Benefit, Employment Support Allowance or whatever. And there's no such thing as being 'registered disabled' anymore. Just to make things even more confusing there is also a benefit called Disablement Benefit in the Industrial Injuries scheme, is that included too? This might sound pedantic but you wait until you try and get your concessionary pass and they won't give it to you because you're on ESA. And if the policy intention is in fact to exclude ESA or other illness/disability related benefits then there is a real possibility of a disability discrimination case.

Also, the decision doesn't specify whether all JSA claimants are entitled to concessions. I suspect that the intention is that only Income Based claimants are like the previous scheme, I only hope that someone decides to make that clear. Otherwise, while you're stood there fuming because the council officer won't accept that your ESA is the same as a 'disability allowance', the millionaire's wife who has just been made redundant will be waltzing past you for her half price go in the sauna.

Interestingly they have appended an Equality Impact Assessment to the decision. It says that there is absolutely no gender discrimination in the new concessionary scheme, clearly failing to realise that men and women still retire at different ages for the time being. Therefore tying the concessions scheme to reaching pension age will be potentially discriminatory for the next 8 years.

What's more, the decision may not be constitutional. According to NCC's constitution (see p22), a decision is a 'key decision' if it will cost more than £500k in revenue and/or will affect two or more wards in the city. I put and/or because the constitution doesn't specify which it is. If it's 'or' then this change will be a key decision and should only be made by the executive board. If it's 'and' then, presumably, as long as the effect of the decision is restricted to a single ward there's no financial limit to a portfolio decision. To be honest this lack of clarity pops up fairly regularly and I suspect it suits certain people to look the other way.

I'd always presumed that it was an either/or situation i.e. if either the financial limit or the two or more wards condition applied then it was a key decision. If that's right then this change to the concessions scheme should have been put before the Executive Board.

So, all in all, this one's a bit of a dog's dinner. We sort of know that there are cuts but we have no real idea who is to be affected. Really the decision should be subject to call-in to get it clarified but I doubt anybody will bother. After all, what's a bit of sex and potential disability discrimination among friends?

Council to Debate Motion Asking Government to Reconsider Tuition Fees Increase

This doesn't happen often but I am absolutely behind something that NCC plans to do.

Cllr David Mellen, who is the portfolio holder for education, is to propose a motion at the next full council meeting on  13 December requesting that the government 'review and change' their policies to avoid 'leading to a wasted generation in Nottingham and the UK'.

Ok it's a bit wishy washy but it's a start. Would perhaps carry more weight if the motion called on the Leader of the Opposition to commit to reversing the cuts if Labour are elected next time and sent a message of support to the students currently occupying the University Great Hall.

Keep the Public Informed...When It Suits You

The Post has two major bad news stories today. One about NCC cutting over 200 places in homelessness hostels, the other about the government deciding not to fund the PFI scheme to do up the Meadows.

Only one of these stories made it to the council's homepage, can you guess which one it is?