Item 16 - Financial Inclusion Team Activity
North Lanarkshire Council · 21 September 2022
Back to Health and Social Care Integration Joint Board — 21 September 2022 and its agenda
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REPORT Item No: 16 SUBJECT: Financial Inclusion Team Activity Report 21/22 TO: Integration Joint Board Committee Lead Officer for Report: Ross McGuffie, Chief Officer North HSCP Author(s) of Report Alison Gordon, Head of Children. Families and Justice/CSWO DATE: 21st September 2022 1. PURPOSE OF REPORT This paper is coming to the IJB for: For approval For endorsement To note 2. ROUTE TO THE BOARD This paper has been: Prepared Reviewed Endorsed Endorsed and remitted to the IJB by the People and Communities Committee in NLC. 3. RECOMMENDATIONS 3.1 The Integration Joint Boards is asked to: Note the contents of the report 4. VARIATIONS TO DIRECTIONS? Yes No N/A
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5. BACKGROUND/SUMMARY OF KEY ISSUES 5.1 In line with the Plan for North Lanarkshire and the Council’s Programme of Work, the report attached in appendix 1 sets out activity within the Council’s Financial Inclusion Team during 2021/22. 5.2 Over the financial year, the team generated over £35m of additional benefit income for the residents of North Lanarkshire, with externally commissioned services generating over £5m, bringing the overall total to over £40m. 5.3 The report notes some of the challenges brought about by the pandemic response as well as the continued Welfare Reform agenda and its impact on the local system. 6. CONCLUSIONS 6.1 The Financial Inclusion Team continues to play a vital role in providing service users and members of the public with advice and assistance on a variety of benefits related issues. 6.2 Income maximisation is an ever more crucial role given the current cost of living crisis and work continues to develop the ‘routine enquiry’ across all health and social care services to maximise the number of individuals who can be supported through the service. 7. IMPLICATIONS 7.1 NATIONAL OUTCOMES The attached report touches on all nine national outcomes. 7.2 ASSOCIATED MEASURE(S) 7.3 FINANCIAL This paper has been reviewed by Finance: Yes No N/A 7.4 RISK ASSESSMENT/RISK MANAGEMENT Risk IJB.09 notes the impact of the pandemic on inequalities and the ability to achieve the outcomes of the SCP and risk IJB.15 highlights the impact of the current cost of living crisis. 7.5 PEOPLE The Towards a Fairer North Lanarkshire – Tackling Poverty Strategy ensures all agencies are aware of their role in tackling poverty and inequalities in the North Lanarkshire population. 7.6 INEQUALITIES & FAIRER SCOTLAND DUTY EQIA Completed & Fairer Scotland Impact Assessment Form Completed:
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Yes No N/A 8. BACKGROUND PAPERS N/A 9. APPENDICES Appendix 1: remitted paper from People and Communities Committee CHIEF ACCOUNTABLE OFFICER (or Depute) Members seeking further information about any aspect of this report, please contact the following; Morag Dendy, Head of Planning, Performance and Quality Assurance
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Appendix 1 North Lanarkshire Council Report Yes ☐ No From Alison Gordon, Head of Children, Families and Justice/CSWO E-mail gordonal@northlan.gov.uk Telephone 01698 332001 Executive Summary This report provides details of the income maximisation work carried out by the Financial Inclusion Team and Council Services during 2021/22 which generated £35,006,809 in additional benefit income for the residents of North Lanarkshire. It also highlights the activity of the External Services commissioned by the Council under the new commissioning model which started in April 2018 which generated £5,423,784M in additional benefit income for the residents of North Lanarkshire. Over this period the Coronavirus pandemic has brought inequality and therefore the importance of income maximisation and wider work to tackle poverty into sharp focus, highlighting the impact of low paid and insecure work in particular. Local approaches to tackling poverty and reducing inequality in North Lanarkshire, continue to be driven by the ‘Towards a Fairer ‘North Lanarkshire Tackling Poverty Strategy with activity focused on the key drivers of poverty The report also updates on the continued programme of Welfare Reform and its impact, including on the introduction of benefits devolved to, and now provided through, Social Security Scotland as well as the challenges which the Council, partners and our communities will face over the next three to four years. Recommendations (i) Approve the content of the report and specifically the approach to reviewing the scheme (ii) Agree that a further report updating on the outcome of that review is provided to the next People and Communities Committee (iii) Remit this report to the Integration Joint Board for Information The Plan for North Lanarkshire Priority Improve the health and wellbeing of our communities People and Communities Committee POO5.2 Financial Inclusion Team Activity Report 2021/2022 It is recommended that People & Communities Committee: Does this report require to be approved? Ref AG/JC Date 19/07/22
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Ambition statement 1. Background (11) Increase economic opportunities for adults by understanding, identifying, and addressing the causes of poverty and deprivation and barriers to financial inclusion 1.1 Due to the complexity of the benefits system, general and specialist welfare rights services are crucial to individuals and families who are dependent on benefits. The Financial Inclusion Service provide support and assistance to staff on the range of state benefits and assist service users to claim all benefits to which they are entitled. The main thrust of all welfare rights work is the maximisation of income for individuals, for the Council and for the community as a whole. Given the poverty levels within North Lanarkshire, it is important that the Council mobilises its resources to tackle poverty amongst service users and in the wider community. 1.2 The Financial Inclusion Team (First Point of Contact) and all Social Work Services provide service users and members of the public with advice and assistance on a wide variety of benefit-related issues. A full benefits check is offered to all new service users. Income maximisation also plays a vital role in longer term Social Work services such as Community Care, Children and Families, Justice Services, Mental Health and Addictions. 1.3 A key role of the Financial Inclusion Team is to support the income maximisation service through consultation and guidance for fieldwork staff, representing clients at tribunals and hearings, and supporting specialist Social Work Services. Successful welfare rights intervention, where individuals are awarded extra benefit, frequently means that, as a result of increased income, they are better able to manage their own affairs and may not require further social work services. 1.4 Income Maximisation work is also undertaken by key staff within the Council’s Housing Services and supported by the Financial Inclusion Team through training or where wider/more specialist support is required. 1.5 Since 2011, the Council has succeeded in securing financial contributions from a number of partner organisations to help fund programmes aimed at reducing the impact of welfare reform. These additional resources, which to date amount to approximately £2.7m, have been used to; enhance capacity to deal with the significant increase in demand for representation, training, advice, information and support. 1.6 The Coronavirus pandemic has brought inequality into sharp focus, highlighting the impact of low paid and insecure work in particular. The impact of the measures to combat the pandemic have had an unequal impact across Scotland and North Lanarkshire, with a greater impact on people living in socio-economic disadvantage and with a number of specific impacts on children who were already living in poverty, or whose families have now been pushed into poverty. 1.7 Over the past number of years, progress in developing local approaches to tackling poverty and reducing inequality in North Lanarkshire, have been strengthening with activity focused on the key drivers of poverty, via the ‘Towards a Fairer ‘North Lanarkshire Tackling Poverty Strategy. The FIT team have a key role in leading and co-ordinating this work across services and with key partners although this report focuses on the activity directly delivered by, or commissioned through, the team.
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1.8 The challenges that the Council and partners will face in delivering our ambitions with respect to Tackling Poverty over the next three to four years are significant. These include the ongoing recovery from Covid-19, the Cost-of-Living Crisis, rising energy costs, fuel increases, the highest inflation in 40 years and the impact of the conflict in Ukraine. This is within a context of the continuing programme of Welfare Reform led by the UK Government but also the roll out of changes to areas of benefit support now devolved to the Social Security Scotland 2. Report 2.1 Income Maximisation North Lanarkshire Council is the largest local authority landlord in Scotland with circa 36, 315 houses. In addition, the local Registered Social Landlord sector owns and manages approximately 9,000 properties. It is estimated that around 58.5% of social tenants are in receipt of Housing Benefit (57.3% in the council housing sector). Early intervention with income maximisation assists in the prevention of rent arrears and the sustainability of tenancies. Housing advisors provide basic information and advice to vulnerable tenants and homeless people, concentrating on housing benefit to ensure people can pay their rent. They receive welfare rights training and are supported by Welfare Rights Officers from the Financial Inclusion Team (FIT). From 1 April 2021 to 31 March 2022, Housing Services generated £13,023,541 in benefits for 5,076 new and existing tenants, making 6,288 claims for benefits of which 3,680 were claims for Housing Benefit (including Supported Accommodation), Discretionary Housing Benefit and Council Tax Reduction Scheme (which is a direct income for the Council and in the longer term contributes to the sustainability of tenancies). Similarly, FIT, together with Social Work Services completed 16,409 Benefit Checks in 2021/22 generating an income to local residents of £19,052,784m, with additional financial gains of £383,839, (benefits, charities, and energy suppliers etc.) generated via Debt Advisors within the FIT. The MacMillan Lanarkshire Advice Service is provided by North Lanarkshire Council and provides home visits, telephone interviews, office visits and surgeries in local hospitals. The FIT manages this service. Between 1 April 2021 and 31 March 2022, there were 668 referrals to the service, of which 403 were for DS1500 cases (terminally ill) It should be noted that this is a reduction from previous years, due to cancer services pausing due to COVID-19 nonetheless £2,546,644m of income was generated for those residents referred affected by cancer. The table below summarises the income maximisation work undertaken throughout the year: Social Work / FIT £19,052,785 Housing Services £13,023,541 Macmillan Lanarkshire Service £2,546,644
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Charities, and energy suppliers £383,839 Total £35,006,809 The FIT and Social Work Service generated 59.40% of the Council total, with Housing Services making up the remaining 40.60%. In cost/benefit terms, it is worth noting that every £1 invested by the Council in income maximisation during 2021/22 generated £27.52 for residents and the local economy. The Financial Inclusion Team also received 9,321, referrals from Elected Members, MSP’s/MP’s, NHSL and other agencies, for welfare rights advice and information. Appeals Representation is a core element of a Welfare Rights Officer’s work. During 2021/22, Welfare Rights Officers represented at 217 appeals (a significant decrease on the previous year due to decrease in DWP activity and the impact of Covid-19)). The overall success rate for Social Security Appeal Tribunals by the Financial Inclusion Team was 67%, which is an improvement on last year and slightly above the national average of 66%. Service Users Questionnaires/Surveys to monitor customer satisfaction did not take place during 2021/22 due to Covid-19 however the Business Intelligence Team have are currently developing an online consultation tool called SNAP, where surveys can be emailed to a client’s email address / put onto the Council website. It is anticipated that this will support this activity going forward. Debt Advice The FIT received 1194 referrals for Money Advice/Debt Advice during 2021/22 from residents, elected members, CABx, Health and Social Care Services, Housing Services, NHS Lanarkshire and other Advice and Information agencies. The FIT dealt with 7 Debt Payment Programmes (DPP) and 26 Bankruptcies were awarded. Whilst the number of Debt Payment Programmes dropped (which was inevitable due to Covid-19 and people’s circumstances being unstable), there was a vast increase in the number of payment/crisis breaks, variations and revocations being dealt with by the team for current Debt Payment Programme’s. The total debt dealt with was £5,084,771. Although there has been a drop in DPP’s and bankruptcies, the amount of debt dealt with only dropped by £854,762 from the previous year. This was largely due to increase in variations, revocations and payment/crisis breaks Due to Covid-19, The Money Advice, Consumer Advice Project (MACA project) for first and second level primary school pupils did not take place during 2021/2022. In common with the situation with Appeals representation Customer Satisfaction Survey’s for Money Advice did not take place in 2021/22 however will be reintroduced in collaboration with The Business Intelligence Team going forward with the intention to use the SNAP tool.
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Training Throughout 2021/22, the FIT has provided training to Council and External Partners, via online video tools, covering updates on benefits, welfare reforms and legislation, financial assessments, employment and support allowance, Migrant Workers and other welfare benefits-related subjects. The FIT also maintains and updates online e-learning training packages for the Scottish Welfare Fund, Personal Independence Payments and Universal Credit, which are available to all council services, elected members and partners via their online platforms. External Services The Financial Inclusion Team commissions and monitors the external services and has carried out monitoring visits of each Citizen Advice Bureaux as outlined in the funding agreement and can provide assurances that each provider are meeting the outcomes agreed in the funding agreement and are providing a quality advice and information service in line with the Scottish National Standards for Advice and Information Providers, their locality profiles and the Council’s 5 Strategic priorities. The External Services have had 5,953 welfare rights enquiries, 3,034 Housing Advice enquiries with 1,185 referred to other agencies, 7,392 Money Advice enquiries with 4,131 referred to other agencies and completed 4,893 Benefit Checks in 2021/2022, generating benefit income to local residents of £5,423,784m. In cost/benefit terms, every £1 invested by the Council in External Services during 2021/22 generated £11.63 for residents and the local economy. It is important to reaffirm that the Council commissions the External Services to provide specific advice and information services (not CAB Services) and that they receive other funding from funders, the above information relates only to the funding that these External Services receives from the Council 2.2 Legislative/Policy Changes (Welfare Reforms) 2.2.1 The UK Government welfare reform agenda was paused during 2021/22, due to Covid-19. A number of financial measures and supports were put in place to support people during the pandemic, however some which came via the benefit system eg. the £20 week increase in Universal Credit have now ended, along with other financial measures and supports. The UK Government/DWP have now resumed the welfare reform programme, as has the Scottish Government. As previously reported, the full impact of the UK Government welfare reform agenda is not yet known as the reforms are still being embedded into the system whilst the number of claimants being migrated from legacy benefits on to Universal Credit increases on an ongoing basis. Full service Universal Credit went live in North Lanarkshire in April 2018, but it will not be completed until 2024 or indeed later. DWP data shows that by November 2020 24,312 households within North Lanarkshire were in receipt of Universal Credit, this rose to 25,894 in March 2021 and in November this had dropped to 24,128. The UK Government Spring Statement for 2022 introduced some further reforms as set out below:
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Reducing the Universal Credit taper rate from 63% to 55% and increasing Universal Credit work allowances by £500 a year with the intention to make work pay. increasing the National Living Wage (NLW) for workers aged 23 and over by 6.6% to £9.50 an hour from April 2022. increasing benefits and pensions by 3.1% (well below the current level of inflation due to the link to previous year’s rate) an additional £500 million for the Household Support Fund from April to help the most vulnerable households with the cost of essentials such as food, clothing and utilities, bringing total funding to £1 billion. Further reforms as set out below were announced by the UK Government on 26th May 2022, principally to address the impact of fuel price rises. Windfall Tax on Oil and Gas Companies (Levy) of 25% on profits. Low Income Families to receive £650 in two payments July and Autumn administered by DWP. Pensioners to receive an additional payment of £300, on top of the Winter Fuel Payment Disabled people to receive a one off £150 payment in Autumn. The Family Support Fund is to be topped up by a further £250 in the Autumn. The £200 Universal support to household which was to be repaid back over 5 years, has been changed to a grant (not to be repaid) and increased to £400 per household. 2.2.2 Scottish Social Security Agency and devolved benefits: A number of benefits have now been devolved to Scotland and the Scottish Social Security Agency are in the process of gradually rolling these out, as detailed below: Job Start Payment Implemented 2020 Scottish Child Payment for under 6’s Implemented February 2021. Disability Assistance for Children & Young People Implemented Summer 2020 Children who receive the highest care component of Disability Assistance become entitled to Winter Heating Assistance Implemented January 2021 Disability Assistance for Working Age People In NL as part of Pilot in June 2022. Roll out Nationally will be August 2022 Additional payments to carers who look after more than one disabled child Implemented early 2021 Pension Age Disability for Older People Implemented 2021 Winter Heating Assistance (to be called Low Income Winter Heating Assistance) Due to be implemented Winter 2022/23
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Cold Spell – Heating Assistance Implemented Winter 2021 Scottish Carer’s Allowance Due to be implemented August 2022 Employment Injury Assistance Due to be implemented Autumn 2022 Scottish Child Payment for under 16s Due to be implemented by the end of 2022 Many of these benefits are replacing existing DWP benefits, but with eligibility criteria being broadened and payments amounts increased, in addition to a number of brand- new benefits being created. This is an import raft of reforms which will have the potential to provide a positive impact on the income of the residents of North Lanarkshire. The FIT will continue to maximise the income of residents, ensuring to check eligibility for these new benefits and support applications where appropriate. 2.2.3 Future Context and Challenges The impact of the pandemic on the national and local labour market has created new challenges for employers and those out of work. The North Lanarkshire claimant count, which acts as a measure of unemployment, was 14,415 (6.6%) people in March 2021 compared with 8,225 (3.8%) in March 2020, a 75% increase on the pre pandemic level. However, in May 2022 it has decreased to 8,050 (3.7%). On the face of it this is good news but behind the unemployment figures real challenges are apparent. As 2021/22 progressed it became clear that a significant number of people, mainly older workers and the majority women, had left the labour market either through early retirement, health concerns or to take up caring responsibilities. These factors, combined with the rapid re- opening of the economy through the year led to staffing shortages across a range of sectors with jobs available, especially at entry level, for those who were job ready or even nearly job ready. The number reported as ‘long term sick’ in North Lanarkshire has increased from 14,900 in December 2019 to 29,400 in December 2021 and the number reported as ‘looking after family/home’ in the Council area increased from 8,500 to 13,000 in the same period. While unemployment is lower than pre pandemic levels the number of people in the workforce in North Lanarkshire has reduced from 174,000 (78.1%) in December 2019 to 159,300 (71.1%) in December 2021, this clearly impacts on income levels. The other concerning national trend is that despite falling unemployment, long-term unemployment remains above pre pandemic levels; with the long-term unemployed now accounting for 35% of all those unemployed (compared with 28% two years ago). Short-term unemployment is at its lowest ever level. For those in work there are also concerns as pay growth remains well below inflation in many of the sectors predominant in North Lanarkshire with the rising costs of living affecting the financial benefits of employment and labour shortages, rising costs and supply chain challenges affecting employers plans for recruitment and business development. So, despite a fall in unemployment in the area there is higher worklessness, negative pay growth and continued labour shortages for businesses and these factors will
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have a continued and sustained impact on the demand for financial inclusion services. Residents will be migrated to Universal Credits full service over the next three years and are expected to fully comply with the UC rules as someone not in employment. This means that they could be sanctioned and lose their UC payments if they fail to follow their Claimant Commitment. Whilst it is problematic to be absolutely accurate based on DWP information and data with regards to Working Tax Credit from HMRC, it is likely that the minimum number of residents who be migrate from their current benefits to UC across the period July 2020 to 2024, will be 49,200, meaning that nearly 77,000 residents will be impacted by Universal Credit and/or other welfare reform changes over the next 5 years with the majority being Council tenants in receipt of Housing benefit/Council Tax Reduction Scheme and/or users of IJB Services. Despite the potentially positive impact of some of the new benefits listed at 2.2.2 above the biggest emerging issues from April 2022, is the end of the financial measures and supports for Covid-19, along with elements of the Coronavirus Legislation ending, the cost of living crisis, soaring energy and fuel prices, highest inflation in over 40 years (expected to peak at 10%), real term cuts in wages, benefits and pensions and the National Insurance increase for workers. These have the potential to result in major issues for our community and council services with respect to increased issues with rent/council tax arrears, debt, food poverty, fuel poverty, homelessness and impact on capacity of services. 3. Measures of success 3.1 Ensuring and improving the standardised service to all residents and providing a sustainable, responsive and effective means of quality advice and support to our communities across North Lanarkshire. 4. Supporting documentation N/A Alison Gordon Head of Children, Families and Justice/CSWO
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5. Impacts ( http://connect/report-template-guidance ) 5.1 Public Sector Equality Duty and Fairer Scotland Duty Does the report contain information that has an impact as a result of the Public Sector Equality Duty and/or Fairer Scotland Duty? Yes ☒ No ☐ If Yes, please provide a brief summary of the impact? No groups will be disadvantaged or excluded through the implementation of the recommendations of the report. Indeed noting, the recommendations presents an opportunity to promote equality and ensure greater access to public services. The current activity of the FIT, Housing Services and North Lanarkshire Health and Social Care Services mitigates where there are negative impacts of welfare reform changes within North Lanarkshire and meets the requirements of the Fairer Scotland Duty by reducing inequalities. If Yes, has an assessment been carried out and published on the council’s website? https://www.northlanarkshire.gov.uk/your-community/equalities/equality-and-fairer- scotland-duty-impact-assessments Yes ☐ No ☒ 5.2 Financial impact Does the report contain any financial impacts? Yes ☐ No ☒ If Yes, have all relevant financial impacts have been discussed and agreed with Financial Solutions? Yes ☐ No ☐ If Yes, please provide a brief summary of the impact? 5.3 HR policy impact Does the report contain any HR policy or procedure impacts? Yes ☐ No ☒ If Yes, have all relevant HR impacts have been discussed and agreed with People and Organisational Development? Yes ☐ No ☐ If Yes, please provide a brief summary of the impact? 5.4 Legal impact Does the report contain any legal impacts (such as general legal matters, statutory considerations (including employment law considerations), or new legislation)? Yes ☐ No ☒ If Yes, have all relevant legal impacts have been discussed and agreed with Legal and Democratic Solutions? Yes ☐ No ☐ If Yes, please provide a brief summary of the impact? 5.5 Data protection impact Does the report / project / practice contain or involve the processing of personal data? Yes ☐ No ☒ If Yes, is the processing of this personal data likely to result in a high risk to the data subject? Yes ☐ No ☐ If Yes, has a Data Protection Impact Assessment (DPIA) been carried out and e- mailed to dataprotection@northlan.gov.uk Yes ☐ No ☐
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5.6 Technology / Digital impact Does the report contain information that has an impact on either technology, digital transformation, service redesign / business change processes, data management, or connectivity / broadband / Wi-Fi? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? Where the impact identifies a requirement for technology, has an assessment been carried out (or scheduled) by the Enterprise Architecture Governance Group (EAGG)? Yes ☐ No ☐ 5.7 Environmental / Carbon impact Does the report / project / practice contain information that has an impact on any environmental or carbon matters? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? 5.8 Communications impact Does the report contain any information that has an impact on the council’s communications activities? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? 5.9 Risk impact Is there a risk impact? Yes ☒ No ☐ If Yes, please provide a brief summary of the key risks and potential impacts, highlighting where the risk(s) are assessed and recorded (e.g. Corporate or Service or Project Risk Registers), and how they are managed? There context described above has the potential to impact negatively on the Council’s Corporate Tackling Poverty Risk (which is already a high risk), particularly with respect to in work poverty and despite the significant investment in in this work related demand may challenge the Council’s capacity to respond.