Transcript Slide 1

Universal Credit –
Cambridgeshire
Benefit Forum
Dave Winterton
Universal Credit –
What it means for
claimants
Universal Credit - What it means for claimants
• Universal Credit simplifies the benefits system.
– Will replace the six main working age
Income based
benefits with one payment
Jobseekers
Allowance
– It removes the requirement to
provide similar information to different
organisations. (HMRC, LA’s and DWP)
Child Tax
Credit
Housing
Benefit
Income based
Employment
and Support
Allowance
Universal
Credit
Working
Tax
Credits
• Universal Credit is more flexible.
– Combines in and out of work benefits making it
Income
less risky for claimants to start and progress in work. Support
– No 16 hour rule and no limits on the number of hours
someone can work.
– Pay is taken into account in real time via the HMRC PAYE interface.
– Claimants will not have to re-apply for Universal Credit if their
circumstances change.
– When someone moves off Universal Credit they can resume their
claim easily should circumstances change within 6 months.
3
Universal Credit - What it means for claimants
• Universal Credit – makes work pay.
– Claimants will always be better off when they start work or increase
their hours
– 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 – replicates the world of work.
– Housing costs paid direct to the tenant
– Single payment to household
– Paid monthly
4
Universal Credit – one year on
Universal Credit claimant journey
I get information or
advice about how to
claim Universal
Credit.
I receive a
telephone call
inviting me to attend
an interview in the
jobcentre.
I make my claim
online at GOV.UK. If
I need help, I can
telephone the
Universal Credit
helpline for
assistance.
I attend my interview at
the jobcentre, taking
along any paperwork
that has been asked for.
I sign my Claimant
Commitment, which
records the activities I’ve
agreed to do in return for
receiving Universal
Credit.
I receive a text
message to remind
me about my
interview at the
jobcentre.
I receive my
Universal Credit
decision letter. It
tells me when I will
receive my
payments, and
confirms what I
need to do in return
for getting Universal
Credit.
I begin looking for
work. I can get
advice on
jobseeking,
budgeting and going
online from my work
coach.
I telephone the
helpline if there is a
change in my
circumstances,
including if I start
work. My Claimant
Commitment is
reviewed and may
be changed to take
into account my new
situation.
I regularly visit the
jobcentre where my
work coach and I
discuss the actions
we’ve agreed in my
Work Plan.
If a change in my
circumstances
means my Universal
Credit payments
change, I receive a
letter confirming the
new details.
UC and Jobcentre Plus
Universal Credit deliberately fosters independence and personal responsibility. It
does this through a series of important changes to the way claimants are required
to interact with the service.
7
•
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
•
To help claimants meet the terms of their Claimant Commitment a Universal
Credit Work Coach will give them extra help with their jobsearch including:
– Universal Jobmatch, Youth Contract, Work Programme, National Careers,
Service Apprenticeships, Access to Work, Government funded skills
training, New Enterprise Allowance, Work Choice
Universal Credit –
National Expansion
Universal Credit roll-out
• Jobcentres in the North West began taking claims from single nonhouseholders on 23 June 2014. Claims from couples began on 30
June 2014 and families from 24 November 2014.
• Universal Credit is now rolling out to single non-householders
across the country from February 2015
• The last new claims to legacy benefits will be accepted during 2017.
Following this the people on the remaining legacy claims will
progressively decline, and the Department will migrate the remaining
claims to Universal Credit.
• The current business case assumes for planning purposes the bulk of
this activity will be complete by 2019.
9
UC Roll-out to East Anglia Jobcentre Plus
Tranche 1 – February to April 2015
Beccles
Lowestoft
Felixstowe
Woodbridge
Leiston
Bury St Edmunds
Haverhill
Mildenhall
Newmarket
Thetford
Dereham
(Waveney LA)
(Waveney LA)
(Suffolk Coastal LA)
(Suffolk Coastal LA)
(Suffolk Coastal LA)
(St Edmundsbury LA)
(St Edmundsbury LA)
(Forest Heath LA)
(Forest Heath LA)
(Brecklands LA)
(Brecklands LA)
Tranche 2 – May to July 2015
No East Anglia sites
10
UC Roll-out to East Anglia Jobcentre Plus
Tranche 3 – September to November 2015
Ipswich
Stowmarket
Cromer
Fakenham
North Walsham
Diss
(Ipswich Borough Council LA)
(Mid Suffolk DC LA)
(North Norfolk DC LA)
(North Norfolk DC LA)
(North Norfolk DC LA)
(South Norfolk DC LA)
Tranche 4 – December to February 2016
Cambridge
Ely
Huntingdon
Wisbech
Peterborough
11
(Cambs C C, East Cambs DC &
South Cambs DC LA)
(Cambs C C, East Cambs DC &
South Cambs DC LA)
(Huntingdon DC LA)
(Fenland DC LA)
(Peterborough CC LA)
Eligibility
• For national roll-out of UC, new claims will be accepted from
single unemployed claimants who would normally have claimed
JSA.
• These claimants can have housing costs but only if they live in rented
accommodation.
• However, there is a principle that once a claimant is entitled to UC they
will not claim the legacy benefits (that UC will eventually replace) as
circumstances change. For example, this applies to changes where a
single claimant forms a partnership to become a couple and where the
new partner has a child.
12
Universal Credit –
What it means for
local partners, LAs
and Social Landlords
UC Resources for partners, LAs and Social
Landlords
• GOV.UK
• Claimant Leaflet
• Partner Toolkit
• Infographics
• Videos
Employer video “Universal Credit in
the hospitality industry”
Judi Leavor, Center Parcs
14
Your role
Videos
Infographics
Claimant
Leaflet
DWP
INFORMATION ABOUT
UNIVERSAL CREDIT
Partner
Toolkit
15
GOV.UK
Claimant
Partner
How you can support your customers now
You can support your customers now by helping them to prepare
for the world of work, and Universal Credit, through:
• Getting a bank account (or similar)
Why? UC is paid directly into an account each month.
Most employers pay this way too.
Claimant
• Ensuring they can set up automated bill payments
Why? Rent is included in their monthly payment – claimants will need to
pay their landlord. They can also benefit from paying other bills this way.
• Monthly budgeting skills
Why? Because Universal Credit is paid monthly, claimants may need to
make changes to the way they budget, especially when they move from
the old to the new system.
• Access to the internet
Why? UC claimants will claim and eventually manage their own account
online.
Internet skills are necessary to an effective jobsearch.
16
Supporting Social Landlords
Social Landlord Support Pack
•on gov.uk
•useful information for social landlords
undertaking preparation for direct
payment of housing costs under
Universal Credit. Including:
- Information and links to useful
documents
- Partner organisation information
- Universal Credit information to help
your tenants prepare
•The pack will be updated as new
information becomes available
•Dedicated email address for landlords
wanting to find out more about
preparation
[email protected]
Supporting Social Landlords
• MAS Landlord Portal
• Universal Credit
information for Landlords
• Changes to Housing
Benefit
• how to help your tenants
manage their own rent
payments
• What to do if your tenant
is in arrears
www.moneyadviceservice.org.uk/en/categories/partners-uc-landlords
Working with Landlords
Our partnership teams have been visiting landlords . Talking to them about:
Getting ready for Universal Credit
– Getting to know their tenants
– Identify tenants who may need support to prepare for Universal Credit
– Provide or referring to appropriate support
– Putting those who are ready onto a direct payment of Housing Benefit early
•Preparing their organisation
– Identifying and managing organisational impacts
– Preparing to take payments
– Preparing their people for the changes
– Finding out about local support services
Working with Landlords
• The Trusted Partner trial seeks to test the proposal whereby social landlords
make a recommendation to DWP that an alternative payment arrangement is
appropriate for one of their tenants.
• The recommendation will trigger an APA with immediate effect and will not be
challenged by DWP.
• Social landlords will be able to opt-in to be a trusted partner..
– The majority of alternative payment arrangements will be temporary and
claimants will be supported so that they are able to manage the standard
UC payment in the future.
•
We met with Lord Freud on the 22nd Sept and gained approval to proceed with a
trial.
What do you have in
place already?
Personal Budgeting
Support
Personal Budgeting Support - Context
REQUIREMENT FOR A
PERSONAL BUDGETING
STRATEGY IS DRIVEN BY
THESE 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
Personal Budgeting Support - Overview
Alternative
Payment
Arrangements
Claimants
managing their
money
Money
advice
Financial
products
Personal Budgeting Support
•Personal Budgeting Support (PBS) is about helping claimants adapt to 3 key
changes:
– a single household payment
– being paid monthly and
– rent paid directly to the claimant instead of to the Landlord
•There are 2 elements to Personal Budgeting Support:
– Money Advice
– Alternative Payment Arrangements (APA)
•There is also a personal planner available online to help claimants identify any
changes they may need to make in order to manage their Universal Credit claim
available here
What is Money Advice?
How Money Advice affects the claimants:
– It is offered to all claimants when they claim or
migrate to UC, to help them with the 3 changes
– It will be based on need
– Some claimants won’t need any Money Advice
– Some claimants may be able to help themselves (e.g. online budgeting
tools)
– Some claimants will be referred to the LA who will arrange Money
Advice locally for them.
– Some claimants will also be considered for an Alternative Payment
Arrangement (APA).
To make a referral to the Local Authority for Money Advice, the Work Coach
will:
• Contact the Local Authority to make an appointment with the claimant
present.
• inform the claimant what to do next.
• Record it on the claimant commitment.
What are Alternative Payment Arrangements?
• Alternative Payment Arrangements (APA) will be available to help claimants
who need additional support:
– paying the UC housing cost element (rent) as a managed payment to
landlords
– making more frequent than monthly payments
– splitting payment of an award between partners
• Alternative Payment Arrangements are also known as Payment Exceptions
• The APA process will be done in agreement with the claimant rather than
‘done to’ the claimant.
• All claimants who have been considered for an Alternative Payment
Arrangement (APA) will be referred to the Local Authority for Money Advice.
Money Advice and APA Process
• All claimants will be asked ‘Personal Budgeting
Support’ (PBS) initial filter questions when the
claimant attends their new claim interview or at
any other appropriate point during their claim.
• Claimants who need Money Advice but can help themselves will be
given a Money Advice Service (MAS) leaflet with a telephone number
and website address and encouraged to contact them
• Claimants who need more intense Money Advice will be asked
further PBS questions by their Work Coach
• The PBS questions will identify if the claimant needs an Alternative
Payment Arrangement (APA) and whether to refer them to the Local
Authority for Money Advice.
• Some claimants will get APA and Money Advice.
• Some claimants will just get Money Advice.
Alternative Payment Arrangements – 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
29
Managed Payment of
the Housing Element
to Landlords
Managed Payment of the Housing Element to Landlords
• Most Universal Credit claimants will receive the single monthly payment,
taking responsibility for paying their own household bills, including their rent,
on time.
• Some claimants will need extra support and so alternative payment
arrangements including a managed payment of the UC housing element to
the landlord can be considered in some cases to help protect tenancies.
• 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.
What are the key elements to consider
• 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.
How to Request a Managed Payment
• Landlords can use the form available on GOV.UK – Universal Credit: Rent
arrears form to apply for a managed payment of the housing element and
recovery of arrears.
• Once UC receives this information they will decide whether or not a managed
payment is appropriate and inform both the landlord and claimant.
• The claimant will also be offered personal budgeting support.
Single Point of Contact for Landlords
• Following feedback from National Housing Federation meetings and to
support continuous improvements within UC, the Service Centre has
created an electronic Single Point of Contact for Landlords to use.
• [email protected].
• This is for Landlords to use to escalate issues that they have with
APAs and Rent arrears payments but must not be used for new APA
requests.
• The inbox will form part of the Service Centres daily activities and will be
given priority. If there is a threat of eviction we ask that the subject field is
noted accordingly 'Potential Eviction'. These enquiries will be cleared within
24 hours. All other enquiries will be cleared within 5 days.
• If a response has not been received within the above timescales, then
there is a direct number that can be used to contact the service centre to
escalate: 01204 514474
• Please note this number is not to be used for general enquiries – the
normal Service Centre number should be used for general enquiries.
Guidance
The full guidance can be viewed on GOV.UK Universal Credit and Rented
Housing
Questions?
Useful links for stakeholders
•
•
•
•
•
•
•
•
•
•
Social Landlord Support Pack
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/373483/uc
-social-landlord-support-pack.pdf
An introduction to Universal Credit video
http://youtu.be/E7GUu7Xa7Nw
Universal Credit pages on GOV.UK
https://www.gov.uk/universal-credit
A toolkit for Partners
https://www.gov.uk/universal-credit-toolkit-for-partner-organisations
A Personal Planner to help claimants prepare for Universal Credit
http://ucpp.dwp.gov.uk/universal-credit-preparation/
A pictorial representation explaining Better off in Work
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/301408/ho
w-uc-tops-up-earnings-to-make-work-pay.pdf
Budgeting help and support
https://www.gov.uk/government/publications/budgeting-your-universal-credit-quick-guide
The Local Support Services Framework
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/181395/uc
-local-service-support-framework.pdf
The Money Advice Service
https://www.moneyadviceservice.org.uk/en
A Money Advice Service Universal Credit video
https://www.moneyadviceservice.org.uk/en/videos/get-ready-universal-credit