Transcript Slide 1

Universal Credit &
Personal Budgeting Support
Welfare Reform
The Welfare Reform Act aims to introduce a simpler, fairer benefits system
that helps ensure people are better off in work than on benefits.
Our reforms will…
Prepare the long-term
unemployed
for the world of work
Ensure people receive
a fairer pension
and are encouraged
to save for retirement
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Help to ensure people
are better off in work
than
on benefits
Supporting
Families to stay together
Provide unconditional
support for those
who need it
Welfare Reform
We have already begun on this journey…
Jobseeking support
Tailored support through the
Work Programme, Universal Jobmatch
and £1 billion investment in
Youth Contract
Greater conditionality
Responsibility to actively seek work
Benefit Cap & Housing Benefit Cap
Benefits no longer greater than average
weekly wage or average rents
Personal Independence Payment
Targeted support, helping disabled people to
lead independent lives.
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Welfare Reform
Universal Credit
is at the heart of these reforms.
It aims to simplify the benefits system and help and ensure
people are better off in work than on benefits
while providing support for those who need it
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Universal Credit
Housing
Benefit
Income based
Jobseekers
Allowance
• Will eventually replace six main
working age benefits with one simple payment
• Is paid monthly
Child Tax
• Can be paid to people in work
Credit
or out of work
Universal
Credit
Income based
Employment
and Support
Allowance
Working
Tax
Credits
Income
Support
How is it different?
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•
Claimants will be able to apply for their benefit online. Nearly 80 per cent of benefit
claimants already use the internet, but telephone and other support services will be available if
needed.
•
Universal Credit will be paid monthly, in line with most people working in the UK and will
include any support for housing costs claimants are entitled to.
•
Universal Credit will require claimants to accept a Claimant Commitment which sets out what
is expected in return for receiving assistance, taking into account personal circumstances and
capability to earn. Those who break the terms of their commitment will face penalties.
•
Universal Credit Work Services Coaches will help claimants become more independent by
supporting them in their worksearch activities. They will help claimant plan and focus their
jobsearch as well as set them actions that give them best chance of finding work.
•
Universal Credit will provide claimants with local support if they need extra help with doing
things like getting online, budgeting or managing direct payments
Universal Credit - it’s all about work
• Universal Credit aims to reward work. No 16 hour rule and no limits on the
number of hours someone can work. The Universal Credit payment only
reduces gradually as their take home pay increases so claimants won’t lose all
their benefits at once if they are on a low income
• Universal Credit will encourage a new type of relationship with claimants.
Work Coaches will help claimants to become more independent by supporting
them in their worksearch activities. They will help claimants plan and focus their
jobsearch as well as set them actions that give them the best chance of finding
work
• Universal Credit aims to support jobseekers through the Claimant
Commitment to raise their expectations of what they can achieve, and to
encourage responsibility. Those who are fit and ready for work will be expected
to look for a job on a full time basis dependent on circumstances
• Universal Credit claimants are expected to use Universal Jobmatch, an
intelligent job matching service that helps employers to get the best fit for the
jobs that they have on offer
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Delivering the policy - how Universal Credit is rolling out to
eligible claimants
• Universal Credit went live on 29 April 2013 in Ashton-under-Lyne in
Greater Manchester
• From 23 June 2014, more jobcentres across the north west of England
gradually started to take claims for Universal Credit
• From 30 June 2014, we began taking new claims for Universal Credit
from couples
• From 28 July, Universal Credit became available to couples in all live site
areas, including across the north west of England and Shotton, Wales.
This means that Universal Credit is now available to single and couple
claimants in 38 areas of England, Scotland and Wales
• We will start to extend Universal Credit to families from autumn 2014
• We will make Universal Credit available in each part of Great Britain
during 2016
• New claims to existing benefits Universal Credit replaces will close down,
with the vast majority of the remaining claimants moving onto Universal
Credit during 2016 and 2017
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Delivering the policy
Universal Credit
In-Work Progression
Pilots
Pathfinder
Digital Jobcentres
Progressive
roll-out of UC sites
Claimant Commitment
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Better off in work
Universal Credit helps people be better off in work than on benefits by:
• Introducing a generally more generous work allowance
• Removing the limit to the number of hours someone can work each week
• Reducing a claimant’s Universal Credit payment gradually as their earnings increase,
so they won’t lose all their benefits at once if they’re on a low income
• Working families can recover 70% of their actual childcare costs, up to maximum
amount
• From 2016 those paying income tax will be able to claim up to 85% of childcare costs
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Eligibility
Claimant goes
to
GOV.UK
to check latest position
as Universal Credit
gradually expands
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Claimant Commitment
Claimant Commitment
Individually tailored to take account of
someone’s circumstances
Claimant
Claimant
Work
Coach
Outlines what a claimant must
do in return for their benefit
Create
Accept
Sets out clearly the consequences of not
meeting Claimant Commitment
Claimant Commitment reviewed on a
regular basis
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Work Requirements
Work
Support for claimants
Local
Partners
LA Services
Local Area
National
Partners
Jobcentre
Plus
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Support for claimants
with complex needs
Budgeting
Work
Online
Housing
Local Support Services Framework
•
•
•
•
The LSSF published in February 2013, outlines how claimants with complex needs will
be supported to ensure they can make and manage a claim to UC. It is available at:
https://www.gov.uk/government/publications/universal-credit-local-support-servicesframework
Based on extensive research into claimant needs and services required to meet those
needs, including day visits to over 120 LAs and extensive engagement with the Housing
and Voluntary sectors.
Written by a task force which includes LA Association reps from England, Scotland and
Wales, and co-signed by Sir Merrick Cockell.
Following the publication of the LSSF Update and Trialling Plan published in December
2013, we plan to capture learning from the work that has already taken place and trial
elements of the LSSF. The Update and Trialling Plan is available at:
https://www.gov.uk/government/publications/universal-credit-local-support-servicesupdate-and-trialling-plan
Under the Delivery Partnerships Approach existing
local planning forums, usually LA led, will be developed
into Local Delivery Groups for UC local claimant
support services.
These must include DWP and Local Authority
representatives but should also include other service
providers. They should have the flexibility to plan
support services and engage different suppliers
according to local circumstances.
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Local Delivery Group: Example
Adult
Education
Digital
Charities
Welfare
Rights
LA Services
(e.g. libraries)
Local
Authority
Adult Social
Care
Community
Reps
DWP District/
Partnership
Managers
Ex-offender
Services
Homelessness
orgs
Social
Landlords
Disability
charities
The real purpose of the Partnerships approach is joined up “single
claimant journey” for claimants with complex needs, from benefits
dependency to independence and, where appropriate, work
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Who do we think may require LSS services?
Claimants with mental
health issues
Geographically isolated
people
Domestic Violence
victims
Multi Agency Public
Protections
Agreement (MAPPA)
restricted claimants
• People with
literacy/numeracy
difficulties
Prison leavers
People with physical
and/or sensory
disabilities
People with English
language limitations
Claimants with learning
difficulties
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People with Financial
Inclusion or severe
debt issues
Entitled 16/17 year olds
Those under the
supervision of the
Troubled Families
Initiative
Non EEA citizens –
including refugees
Homeless people
People with addiction
problems
(drugs/alcohol/gambl
ing)
Care leavers
Personal Budgeting Support –Why?
REQUIREMENT FOR A
PERSONAL
BUDGETING STRATEGY
IS DRIVEN BY THESE
UC CHANGES
We want to help
people to be able
to manage their own
finances successfully,
whether they are
in or out of work
Housing
costs direct
to tenant
Single
payment to
household
Monthly
Payment
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Personal Budgeting Support - Overview
Alternative
Payment
Arrangements
Claimants
managing their
money
Money
advice
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Financial
products
Alternative Payment Arrangements
• For a minority of claimants, alternative payment arrangements may be
required; these might include
paying the rent directly to the landlord
making more frequent than monthly payments
splitting the payment within the household
• We will also have the option to make rent payments direct to the landlord if a
claimant reaches a certain level of rent arrears. ( Usually 2 Calendar months /
8 weeks )
• These alternative payment arrangements will be considered on a case by case
basis and assessed on their individual merits.
• When considering alternative payment arrangements, a series of Tier 1 and
Tier 2 factors indicating potential support needs will be used to help to decide if
these arrangements are appropriate to an individual.
• The decision about whether an alternative payment arrangement is suitable
will be made by a UC adviser through the PBS process.
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APA – consideration factors
Tier One factors – Highly likely / probable need for alternative payment arrangements
Drug / alcohol and / or other addiction problems e.g. gambling
Learning difficulties including problems with literacy and/or numeracy
Severe / multiple debt problems
In Temporary and / or Supported accommodation
Homeless
Domestic violence / abuse
Mental Health Condition
Currently in rent arrears / threat of eviction / repossession
Claimant is young either a 16/17 year old and / or a Care leaver
Families with multiple and complex needs
Tier Two factors - Less likely / possible need for alternative payment arrangements
No bank account
Third party deductions in place (e.g. for fines, utility arrears etc)
Claimant is a Refugees / asylum seeker
History of rent arrears
Previously homeless and / or in supported accommodation
Other disability (e.g. physical disability, sensory impairment etc)
Claimant has just left prison
Claimant has just left hospital
Recently bereaved
Language skills (e.g. English not spoken as the ‘first language’).
Ex Service personnel
NEETs - Not in Education, Employment or Training
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Managed Payments of Rent
• Managed payments will be considered on a case-by-case basis and can be
requested by landlords as well as claimants. They can be considered on request
from the start of the claim or during the claim if the claimant has accumulated
rent arrears which will put their tenancy at risk.
• We do expect landlords to continue to follow their usual rent collection practices
and procedures, making every effort to manage rent payments and recovery of
any rent arrears. However, if the claimant is unable or unwilling to resolve
payment issues with their landlord UC can then intervene.
• When a claimant has accumulated one month's rent arrears due to persistent
underpayment, we will make an early intervention, reviewing the financial
support they need and making managed payments to their landlord if
appropriate.
• If a claimant has accrued two month's rent arrears, we will pay the UC housing
element direct to the landlord and if requested take steps to recover the rent
arrears through deductions from their remaining UC payment.
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Money Advice
Money advice will include:
Online budgeting tools for claimants who can help themselves – e.g. by
Money Advice Service
Advice services by external organisations for claimants who need more
support with, for example, getting a bank account or doing a monthly budget
plan.
• Local advice services will be delivered by phone and face-to-face by expert
providers through the Local Support Services framework. The Local Support
Services Framework is available on gov.uk:
https://www.gov.uk/government/publications/universal-credit-local-supportservices-framework
• A UC personal planner is available on gov.uk to help claimants understand and
prepare for financial changes arising from the introduction of Universal Credit:
https://secureonline.dwp.gov.uk/universal-credit-preparation/
• The Planner asks claimants a set of questions about their readiness for claiming
Universal Credit and, depending on the answers given, sets out an individual
action plan.
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Financial Products
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•
75% of people in employment are paid earnings monthly in arrears. Monthly
payment of benefit will prepare households for the reality of budgeting on a
monthly income, ease the transition into work, and will make it easier for
households to take advantage of cheaper tariffs for essential costs such as utility
bills.
•
The majority of Universal Credit claimants will continue to be paid through
mainstream current bank accounts.
•
Having a transactional account will enable claimants to make electronic payments
out of the account.
•
Most claimants will be paid into a bank account but up to 1.3 million potential UC
claimants currently do not use a suitable financial product e.g. POCA which
does not have transactional facilities.
•
We are working with banks and other financial institutions to support claimants to
open suitable accounts before they migrate to UC.
•
We are investing £38 million into the modernisation and expansion of credit union
services. A growing number of credit unions offer current account services as an
alternative to mainstream bank accounts.
Payment Advances
• Universal credit payments will be issued monthly through the BACS system.
• The first payment will be made after the initial UC calculation period (one
calendar month from the date of claim) + 7 days.
• New claimants and those transitioning from legacy benefits may be eligible for
an advance of their indicative award to help them manage during the first
assessment period if they need it.
• These UC advances will provide an interest-free lending facility for claimants
who find it difficult to access mainstream credit, and could offer an alternative
to high cost borrowing.
• A claimant can request an advance of up to 50% of their indicative UC award.
• The UC Advance (New Claim) can be claimed up to 21 days from the date of
claim during the first month and will be issued via BACS after 3 days.
• The advance will be recovered from the claimant’s UC payments in equal
deductions over the following 6 months, starting with their first payment of UC.
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Useful Links
The UC Personal Planner - aimed at helping financial and digital preparation:
https://secureonline.dwp.gov.uk/universal-credit-preparation/
Money Advice Service support for UC
https://www.moneyadviceservice.org.uk/en/categories/universal-credit-and-otherbenefits
The Local Support Services Framework
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/1813
95/uc-local-service-support-framework.pdf
Operating Guidance for PBS & APAs
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/1813
99/personal-budgeting-support-cover-note.pdf
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/1814
00/personal-budgeting-support-guidance.pdf
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