P005.2 Tackling Poverty - (2) Update report on implementation of the Tackling Poverty Strategy and improved outcomes achieved - Fuel Poverty Hardship Payment
North Lanarkshire Council · 22 August 2022
Back to People and Communities Committee — 22 August 2022 and its agenda
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North Lanarkshire Council Report People and Communities Committee Does this report require to be approved? ☒ Yes ☐ No Ref AG/JC Date 19/07/22 P005.2 Tackling Poverty – (2) Update report on implementation of the Tackling Poverty Strategy and improved outcomes achieved - Fuel Poverty Hardship Payment From Alison Gordon, Head of Children. Families and Justice/CSWO E-mail gordonal@northlan.gov.uk Telephone 01698 332001 Executive Summary This report updates on the implementation of Fuel Poverty Hardship Payment Scheme. The Council’s approach was approved by Community Empowerment Committee on 1st November 2021. This payment initially proposed for targeted groups of £75 per household was subsequently enhanced to £150 per household due to the increase in budget provided by the Scottish Government through the Tackling Insecurity Fund and Winter Support Fund. The report provides detail on payments made though the fund during the period January- June 2022 supporting reflection on the successes and challenges in reaching its target population. Information is also provided on funding available for Winter 2022/23. It is planned that the Tackling Poverty Officers Action Group lead on reviewing the Scheme and report back to the Corporate Management Team with a view to implementation from October 2022. Recommendations It is recommended that the People & Communities Committee: (i) Note the outcome of the Fuel Poverty Hardship Payment Scheme (ii) Agree that the Tackling Poverty Officers Action Group review the Scheme and bring proposals to Corporate Management Team for a revised scheme for Winter 22/23 (iii) Remit to this report to the People and Communities Committee The Plan for North Lanarkshire Priority Improve the health and wellbeing of our communities Ambition statement (11) Increase economic opportunities for adults by understanding, identifying, and addressing the causes of poverty and deprivation and barriers to financial inclusion
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1. Background 1.1 The Corporate Management Team meeting on 28th September 2021, approved the approach to the Fuel Poverty Hardship Payment which targets groups identified as priority through the Council’s third Local Child Poverty Action Report and the updated Towards a Fairer North Lanarkshire Tackling Poverty Action Plan. The Action Plan identified that around 31,000 people were experiencing fuel poverty in North Lanarkshire, with 8,000 of these people being families with children who are householders. The Projected Household Report (2018) indicated that 5375 of young people aged between 18 & 24 years old would be householders by 2020 and that due to the levels of benefit entitlements/living wage level for this age group, it was also highly likely that they will also experiencing fuel poverty. These two groups were therefore targeted as groups likely to be in fuel poverty and without access to other schemes such as winter fuel payment. 1.2 The Community Empowerment Committee approved the approach for the Council’s Fuel Hardship Payment on 1st November 2021. At that time, based on the level of budget available and factoring in the number of potential claimants from the targeted groups, the payment was set at £75 per household. 1.3 The payment per household was subsequently raised to £150 per household, facilitated by the increase in the budget provided by the Scottish Government via the Tackling Insecurity Fund and the Winter Support Fund. 1.4 The eligibility criteria for the Fuel Hardship Payment were agreed as noted below: • Applicants must be a householder in North Lanarkshire • Be aged between 16 and 24 years of age /or • Householders who are responsible for a child • Be in receipt of income-based benefits including Universal Credit and Council Tax reduction Scheme/or • Low income (ie: household income of £26,600 or less per annum) • Have savings of less than £700, and • Meet the definition of being in fuel poverty. This was based on the Fuel Poverty (Targets, Definition and Strategy) (Scotland) Act 2019, which defines a household is in fuel poverty if the household is spending more than 10% on fuel, of their net income after paying their rent/mortgage. An amendment was subsequently made to extend the age based criteria to up to 26 for those young people who have experienced care, in line with entitlement to after care.
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2. Report 2.1 The Fuel Hardship Payment opened for applications from 10th January 2022 with payments to successful applicants being made from 20th February 2022. 2.2 Corporate Communications and the Financial Inclusion Team ran a campaign advising residents and targeted groups, using a series of social media messages (Facebook and Twitter), as well as promoting the payment via Council Services, VANL and the North Lanarkshire Advice Network. Applications 2.3 In total, 8,101 applications were received, 556 applications from householders from the age group 16 to 24, and 7,545 applications from households with children. The was below overall target was for 14,000 households to benefit from the Fuel Hardship Payment with the reach of the scheme to households with children falling only slightly short of those in this category estimated to be in fuel poverty but the number of households without children reached within the age related category, significantly less than anticipated. 2.4 315 applications for the age group were successful and received a payment, with 199 rejected, as they failed to meet the eligibility criteria. As of the end of May 2022, 42 applications were still outstanding, awaiting further information. 2.5 5,774 applications for Households with Children were successful and received a payment, with 1,113 rejected, as the failed to meet the eligibility criteria. At the end of May 658 applications were still outstanding awaiting further information 2.6 The Revenues and Benefit Team in conjunction with the Financial Inclusion Team are progressing the outstanding applications, applicants have been sent 2 emails and given 14 days to reply with the requested information. If no response is received, then the cases are closed. 2.7 Any new evidence was requested by the 30th June 2022 when the 2021/22 Scheme was formally closed. Payments 2.8 The total budget allocated to the Fuel Hardship Payment was £2.1M. To date £913,350 has been paid to Households who met the edibility criteria, with a potential further maximum of £105,000 payments due for the outstanding applications. Advice (Income Maximisation, Money/Debt Advice and Fuel Poverty) 2.9 All applicants to the fund were offered the opportunity of receiving a benefit check, money advice and fuel advice. Of the 8,101 applicants, 2336 household took up this offer. 1,117 were dealt with the Financial Inclusion Team. 588 failed to engage and 529 were provided with advice and support on benefits/money advice and fuel advice. 2.10 1,219 applicants were referred to CABx who also offered advice on benefits/money advice and fuel advice, 545 failed to engage and 674 were provided with advice and support on benefits/money advice and fuel advice.
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2.11 It is too early at this stage to advise any additional income generated for these applicants, as we are still wating on decisions on claims for social security benefits and other benefits. Next Steps 2.12 The final underspend in the Financial Insecurity Fund and Fuel Hardship Payments will be added to the Local Authority Recovery Fund £960,000 for Fuel Poverty which was approved by the Corporate Management Team on 26th April 2022. This brings the total available for Winter 2022/23 Fuel Hardship Payment to £2.161M (excluding any of the 105,000 held not required for outstanding claims) 2.13 The Tackling Poverty Officers Action Group will develop a new Fuel Hardship Payment Scheme to be actioned in October 2022, in line with the next increase on the energy cap. Clearly there has over the past year been a significant change in context with acute rise in energy prices meaning that a much higher percentage of the population are at risk of fuel poverty, only partially mitigated by support already announced by the UK government. Proposals for the new Scheme will be informed both by the evolving context and learning from the targeting and implementation of the 2021/22 Scheme locally. 2.14 Proposals for the new Scheme will be brought to the Corporate Management Team for approval by the end of August 2022. 3. Measures of success 3.1 Number of Families and individual residents who have benefited from the Fuel Poverty Payments. 4. Supporting documentation N/A Alison Gordon Head of Children, Families and Justice/Chief Social Work Officer
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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 measures and interventions outlined in the report which present an opportunity to promote equality and ensure greater access to public services and support. The Fuel Hardship Payment supports the Council to meet the requirements of the Fairer Scotland Duty by reducing inequalities in line with Towards a Fairer North Lanarkshire North Lanarkshire Tackling Poverty Strategy. 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? Budget was provided via the Scottish Government Covid -19 funding for Financial Insecurity and Winter Support Fund. 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 ☐
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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 ☐ 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? IT developed an online application form for residents. 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? The Corporate Communications Teams worked with the Fuel Poverty Sub Group to develop and implement a communications plans for residents who may be eligible for the payments and to keep applicants up to date with the progress of their applications. 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?