| Homepage > The Work of the Assembly > Committees > Social Development > Reports > Budget 2011-2015 | |||||||||||||||||||||||||||||||||||
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2010-11 |
2011-12 |
2012-13 |
2013-14 |
2014-15 |
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Current Expenditure |
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521.1 |
516.7 |
532.0 |
543.0 |
523.4 |
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Capital Expenditure (net of receipts) |
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269.6 |
150.3 |
120.6 |
99.0 |
190.3 |
The DFP Minister also indicated that the Executive was to establish “a £20 million Social Protection Fund to assist those in severe hardship as a result of the economic downturn. This Fund, with an initial allocation of £20 million 2011-12 will then draw upon the additional new revenue streams that Ministers are to take forward.”
The DFP Minister further indicated that the Executive “has proposed the establishment of a fund of £20 million per annum which will be administered by OFMDFM” to tackle the problem of disadvantage within Northern Ireland “in those interface communities where the problems are many and complex”.
The Committee for Finance and Personnel asked statutory committees to review their departments’ draft budgets and respond before 16 February 2011.
This document summarises the Committee for Social Development’s review of the DSD Draft Budget 2011-2015.
In preparation for its review of the Department’s draft budget proposals, the Committee undertook a call for evidence with the voluntary and community sector which was facilitated by the Northern Ireland Council for Voluntary Action (NICVA) on 25 November 2010. A report on the call for evidence event is included at Appendix 5.
The Committee also sought written evidence from a wide range of stakeholders including: Northern Ireland Federation of Housing Associations (NIFHA); NICVA; Mencap; Housing Rights Service; Northern Ireland Public Service Alliance (NIPSA); Citizens Advice Bureau; Advice NI and Law Centre (NI). Copies of these written submissions are included at Appendix 3.
The Committee received a Ministerial briefing on the budget at its meeting of 13 January 2011 and a further Departmental briefing at its meeting of 10 February 2011. The relevant minutes of proceedings are included at Appendix 2. Relevant Departmental submissions are included at Appendix 4.
Budget Context- Welfare Reform
The Committee took evidence from the Institute of Fiscal Studies (IFS) so as to establish the context for the draft budget. The IFS indicated that tax and benefit changes introduced by the Westminster Government would impact disproportionately on the poorest income quintile (lowest 20% of the population by income) in Northern Ireland.
Members of the poorest income quintile in Northern Ireland have an average income (after tax and including benefits) of around £10,000 pa. The average cash loss to members of this group is estimated as £360 pa (in 2012) rising to £691 pa (in 2014).
The Committee also noted Assembly Research information designed to characterise the poorest income quintile in Northern Ireland. The briefing note showed that 350,000 individuals including working age adults, children and pensioners are in this category and that they are in receipt of a range of benefits.
Relevant papers are included at Appendix 5.
The Committee agreed that the draft budget document and Departmental responses did not fully address Members’ queries or concerns. The results of the Committee’s consideration of the draft budget are set out below.
Pay and Posts
The Department’s draft Budget 2011-2015 document referred to revenue bids that were made in September 2010 in respect of Pay Increases and Price Inflation. T he Department advised that it expected that there would be no requirement for voluntary or compulsory redundancies in any business area during the budget period. The Committee was advised that reductions in posts will be achieved through natural wastage. The draft budget also appeared to indicate that pay progression will apply to all staff - with those staff earning less than £21,000 also receiving a £250 payment for at least the next 2 years.
In respect of the information provided, the Committee agreed that it generally endorsed the Department’s apparent approach to the management of pay and employment within DSD in the budget period.
Housing and Social Housing Development Programme (SHDP)
The Committee welcomed the apparent commitment in the draft budget to continue to support 500 first-time buyers per year to secure their homes through co-ownership and for support for 200 Disabled Adaptations per year (as recommended by Occupational Therapists). The Committee also noted the capital allocation which is apparently designed to cover most of the costs of the estimated 2,600 pa mandatory private sector grants.
It is understood that the draft budget allocation to the SHDP will provide for 4000 new social homes in the budget period. The Department advised that this figure does not include those new social homes that may be started as a consequence of additional funding from the Housing Associations.
T he Department advised that the Minister does not accept that Housing Associations can provide an additional £80m during the budget period for the SHDP.
In correspondence from NIFHA, it was claimed that around £31m can be provided by Housing Associations – through £14m of “in kind” expertise + £15m by Housing Associations developing new housing with smaller grants from the Department + £2m in efficiencies and grant savings by “non-developing” Housing Associations. NIFHA also claimed that the above could be partially funded by rent increases equalling RPI + 0.5% for every year of the budget period and by changes to legislation to allow Housing Associations to build and sell private housing. NIFHA also advised that its members’ reserves are committed and their reduction could impair Housing Associations’ ability to borrow.
The Committee agreed that it generally welcomed many of the capital allocations in the budget designed to meet housing pressures through Disabled Adaptations and Co-Ownership.
Some Members expressed significant concerns in respect of the potential reduction in the number of new social houses to be built under the SHDP. Members sought further information on the strategic use of Departmental land to support the SHDP. Some Members expressed concerns in respect of the viability of a proposed reduction in the Housing Association Grant as a mechanism for increasing new social house building.
The Committee sought clarity in respect of how the SHDP was to be funded by additional contributions from the Housing Associations. In the absence of further detail on the funding of the SHDP, the Committee agreed that it could not necessarily endorse the Department’s approach in respect of the SHDP.
Northern Ireland Housing Executive and related programmes
It is understood that NIHE rents for period 2011-12 are to increase by 3.75%. The Department in its evidence to the Committee could not clarify the amount of NIHE rent increases for the rest of the budget period and therefore could not also confirm the level of redundancies that may be required in NIHE (if any).
The Department indicated that savings would be made in NIHE through the curtailment of maintenance in-line with the findings of the Saville’s report; staff reductions in administration and policy areas; a curtailment of travel & subsistence; training; IT, advertising and survey costs.
The Department could not confirm the number of NIHE homes which are to be brought up to the Decent Homes standard in the budget period. The Department advised that it has submitted an Invest to Save bid of £12m to upgrade the insulation etc. of a large number of NIHE properties.
The Department confirmed in evidence to the Committee that funding for the Warm Homes scheme in private housing is to be maintained at £12m pa. A further £8.5m pa from the Decent Homes budget is to be used to provide anti-fuel poverty measures in NIHE tenures.
The Department also indicated that funding for Supporting People providers is to continue at £64m pa though there is to be no increase for inflation for providers. The Department could not indicate the number of new build units to be provided to meet the recommendations of the Bamford Review – this is expected to be some way short of the 1168 units for which the Department bid in September.
The Committee agreed that it welcomed continuing support for the Warm Homes Scheme and Supporting People providers. The Committee also indicated its support in principle for the Department’s Invest to Save bid to upgrade NIHE homes.
The Committee also agreed that in the absence of clarity on NIHE rents and possible redundancies at the Housing Executive, it could not necessarily endorse the Department’s general approach to the funding of the Housing Executive and related programmes.
Voluntary and Community Sector
The Department advised in evidence to the Committee that funding for the Neighbourhood Renewal Strategy; Areas at Risk and Small Pockets of Deprivation projects will continue at present or higher levels, though options to improve efficiency of delivery were being considered. The Department also advised that funding is to continue at current levels for the Housing Rights Service and Supporting Communities NI.
In evidence to the Committee, it was indicated that further consideration is to be given by the Department to the reduction of costs by voluntary groups through e.g. the sharing of services.
The Committee agreed that it generally endorsed the Department’s apparent support for the voluntary and community sector and urged the Department to clarify the detail of its funding decisions at the earliest opportunity. Members also supported in principle the voluntary sector’s call for the optimization of audit requirements so as to ensure transparency and accountability whilst minimizing unnecessary bureaucracy and costs.
Urban Regeneration and Public Realm
The Committee welcomed capital allocations to public realm schemes but noted with concern the Department’s advice that there may be an adverse impact on Physical Development projects in: Belfast’s middle core; eleven areas in Londonderry, Limavady and Strabane and phases 2/3 of Belfast Streets Ahead.
The Department could not advise in detail on the impact of a somewhat reduced capital allocation on the vesting of houses in declared Urban Regeneration Areas e.g. Parkside; Glandore; Lawnbrook; Woodvale Avenue; the Village and Upper New Lodge .
The Department indicated that in respect of the Ilex and City of Culture projects, it had received a lower capital allocation than was requested and that therefore its focus would be on the delivery of priority projects.
In respect of the Royal Exchange, the Department recognised that the reduced capital allocation for this project must be addressed in advance of the firming-up of the relevant delivery timescale.
The Committee generally welcomed the allocation of funding to urban regeneration schemes. The Committee agreed that in the absence of detail relating to key urban regeneration projects, it could not necessarily endorse the Department’s approach to the funding of these projects.
Other
The Committee noted the capital and revenue allocations to support Welfare Reform including additional resources for the Appeals Service and Medical Support Services. The Committee agreed that many aspects of the proposed reforms are unclear and sought further information as to the relevant allocation of supporting funding.
The Committee noted the absence of detail in the budget document in respect of the Jobs and Benefits Office programme. The Committee considered that this important programme has had a positive impact on employment rates in deprived areas. The Committee sought further information as to how the Department is to work with other bodies to enhance the delivery of jobs and benefits services.
The Committee also noted proposed DWP reforms to arrangements for Child Maintenance. The Committee expressed some concerns in respect of these proposed reforms and agreed that when possible the Department should brief Members on the relevant outworkings of the DWP reforms.
The Committee also agreed that it required further information on the application by the Department to the Social Protection Fund for support for a scheme to help home owners facing repossession proceedings.
