Transcript Welfare Reform - TPAS Scotland

TPAS Conference
October 2014
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Based on what you already know about
Universal Credit:
Why is it being introduced?
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Which tenants are most likely to be affected?
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Which tenants are not affected?
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When is it likely to affect most tenants?
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To claim UC the person(s) must:
be 18 or over (16 in some limited circumstances)
be under Pension Credit age
be resident in Great Britain
not be in education
have accepted a “claimant commitment”
Couples are required to make a joint claim as a couple. If one
of the couple fails to meet any of the above conditions, that
person will be ignored for the purposes of calculating the UC
Maximum Amount - although their savings/capital, income
and earnings will still be taken into account.
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From October 2013 to April 2014 – 500K “new claimants”
were due to receive Universal Credit instead of jobseeker's
allowance.
Simultaneously, another 500K existing claimants and their
families were due to be transferred to UC when their family
circumstances changed significantly - for instance if they got
a job or had another child.
From April 2014 a further 3.5 million claimants and their
families were due to move to universal credit.
And from the end of 2015 to the end of 2017 a further three
million households were due to be moved over.
By 2017 8 million households involving 12 million claimants
were due to migrate to Universal Credit
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“New claims” but only from those selected (single people under 35 in main)
who would otherwise have made a new claim for JSA, starting Ashton-underLyne Pathfinder 29th April – Wigan, Warrington – July 2013
Pathfinders extended to 6 new areas starting October 2013 in Hammersmith
& Fulham completing in Inverness & Rugby - April 2014.
Roll-out announcement relating to 12 council districts in North West of
England, starting June 2014. Again restricted initially to Single claimants.
To date 13, 000 UC Claimant UK wide
DWP announced on 29th September rollout to be extended to all Jobcentres &
Local authority areas, starting from February 2015.
Pathfinders & live sites suggest a host of IT difficulties being encountered.
Reports suggest all earlier plans & development costs likely to be written off
(£140M to as much as £420M)
Whatever the date, councils should receive 3 month warning before date of
migration. RSLs, assuming their tenant is having HB paid direct, should be
notified in advance as they are still a “person affected” at that stage.
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For council tenants and tenants of Registered Social Landlords
(including Housing Associations):
actual core rent + eligible service charges will continue to be
assessed separately from other elements of UC.
From the resulting figure you must deduct a) Under-occupation
penalties & Housing Contribution costs (HCC) of any NonDependants
At the point UC kicks in, the amount of the “UC Housing element”
will be incorporated into one single payment, paid on a monthly into
the claimant’s bank account, but in arrears.
If the contractual rent is charged weekly, fortnightly, 4 weekly, DWP
will simply convert to monthly.
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LA/RSL interfaces, currently used in annual rent increase
exercise – will continue to be used, as now, for Housing
Benefit purposes.
BUT not for UC purposes!
At point of claiming UC - onus on claimant to include
housing costs in UC claim, produce a rent statement and
tenancy agreement and notify annual rent increase in advance
of April change.
Delays in claiming and reporting changes – very limited restricted to 1 month on either backdating or revision.
Changes in circumstances will be applied on monthly
“assessment period” basis producing “winners & losers”.
Penalties can also be imposed for late notification of changes
in circumstances causing overpayments.
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Universal Credit is designed to be 'digital by default'.
Claimants will be expected to http://www.gov.uk/universalcredit/overview and then attend a face-to-face interview.
Short term – 100% of claims will be made by claimant attending the
JCP office where they will be assisted by the DWP staff using various
IT systems + face-to-face “claimant Commitment” interview.
Longer terms – 90% plus made online with notification/award letters
to be sent electronically instead of hard copies.
“Real-time” data to be drawn from DWP and HMRC systems for new
claims and UC will be updated monthly to take account of most up
to date earnings.
RSL staff and Voluntary organisations to play a major part of support
services.
Claimant Journey (next slide).
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Bank Accounts - If claimant doesn’t possess bank account DWP to
determine payment facility. See
https://www.youtube.com/watch?v=fx-i4v1T1s8
Paid monthly in arrears to one claimant for each household
Separate UC payments to non-dependant sons, daughters etc. or
where payments misused.
Paid on different days of the month, determined by the initial date of
claim e.g. Claim made on 1st September would be paid on 7th
October covering 1st to 30th September.
Budgeting advances payment to offset shortfall at point of transfer
to monthly payments. Repayable by deductions from future
payments.
Universal Credit Toolkit: https://www.gov.uk/universal-credittoolkit-for-partner-organisations
DWP, Councils and Support organisations to provide advice &
assistance to those in need of help with budgeting & claiming.
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UC default position will be to pay tenant, rather than landlord.
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However, Lord Freud announced:
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1. Payment of the ‘housing cost’ element could be paid from day one in
“vulnerable” cases (see next slide) and would automatically be redirected to
landlords when 2 months of rent arrears accrued;
2. The DWP, if alerted by the RSL, that 1 months’ cumulative arrears had built
up due to housing costs not being handed over, payment of the housing
costs would be suspended and a decision made as to whether payment
should, at that point, be reverted to ‘Landlords’ Managed Payments’;
3. Similarly, if over an extended period of time, payments amounting to 1
months’ rent accrued as arrears, the process in 2 above could be applied;
4. Tenants could be required to repay the missing rent by way of accelerated
deductions over a 6 to 9 month period, assuming they had no other ‘third
party’ deductions.
5. DWP Guidance https://www.gov.uk/government/publications/universalcredit-and-rented-housing
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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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LMPs & Rent Arrears application
https://www.gov.uk/government/publications/universal-creditand-rented-housing
- Proof of rent arrears which must show the balance on the rent account
including the amount of rent outstanding and the amount of rent due each
calendar month e.g. Rent book, rent account, letter from Landlord on letterheaded paper confirming the balance on the rent account, including a calculation
of the amount of rent outstanding, and the amount of rent due each calendar
month.
'- To enable the request for the managed payments to the Landlord to be linked
to the correct Universal Credit claim it is advised that the National Insurance
number section be completed. If the National Insurance number is not known
then please provide the tenant(s) Date of Birth
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UC Customer Journey – Pictorial Representation
stomer Touch Points
I get
ormation or
vice about
w to claim
Universal
redit (UC)
I make my claim
on-line. If I need
help, I can
telephone the
Universal Credit
helpline for
assistance
I receive a text
message to remind
me about my
interview at the
Jobcentre
I receive a
telephone call
inviting me to
attend an
interview in the
Jobcentre
I attend my interview in
the Jobcentre and take
any evidence that has
been requested. I sign
my printed claim and
complete the Claimant
Commitment (CC)
I receive my UC
decision letter which
includes my
payment schedule if
appropriate. I am
also advised about
my on-going
responsibilities as
agreed in my CC
I am asked
to attend the
Jobcentre
I notify the UC Service
Centre if there is a change
in my circumstances
I attend the
Jobcentre and
engage in
work related
activity
I send any
additional missing
evidence to the
Mail Opening Unit
(MOU)
I receive a
notification to
advise me tha
my Universal
credit
entitlement ha
changed or
ceased
UC Service Centre
Jobcentre
siness Process
UC Service Cen
Claims Closur
UC Service Centre
Jobcentre
Online/ UC Helpline
Claims to Universal Credit
(UC) are made on-line. If a
claimant requires assistance,
the Universal Credit Helpline
is available.
In exceptional circumstances,
claims can be made by
telephone or face to face
On receipt of the online
UC claim, the Service
Centre (SC) contact the
Claimant by telephone
to arrange an interview
at the Jobcentre.
An SMS text message is
issued to remind the
claimant about their
appointment
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The Jobcentre print the
UC claim and obtain a
signature from the
claimant. Any additional
information is gathered
and the Claimant
Commitment (CC) is
completed. The UC
Portal is updated and the
claim documents and
any supporting evidence
are sent to the Mail
Opening Unit (MOU)
The MOU scan the claim
on to the Data Repository
System (DRS). Any
evidence or
correspondence sent in
separately by the
Claimant creates a
CAMLite task for the
agent in the SC. On
receipt of the task, the
agent updates the UC
Portal. Once all evidence
has been verified, this
triggers the processing of
the UC claim
The Claimant is
invited to attend the
Jobcentre to
undertake specific
work related activity
as agreed in the
CC.
There is on-going
interaction at the
JC
If the claimant h
a change of
circumstance it
reported to the
Service Centre
The claimant is
notified regardin
any change to th
award of Univers
Credit
Social
Responses
2. Agents &
Appointees
1. Friends
and Family
Trusted
intermediaries Carers, POA,
etc
…next steps will
include work to
estimate the
contribution this
support can bring
4. Housing
to reducing
volumes
3. Local
Support Orgs
Third sector
organisations such
as CAB, CPAG,
Gingerbread,
MAS
Etc
Libraries
DWP, HMRC
10. Govt.
Debts Advice Services
Jobcentres
Work Programme
UC Services inc Telephony
and F2F
On line schemes
Social
services
Responses General benefit support
One stop shops
5. Local
Authority
Tell us Once
Gas
Water
Electric
Initial focus
has been on
identifying
the potential
support
networks…..
9. Utility
Companies
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Etc
PO
Banks &
Building
Societies
Credit
Unions
Etc
8. Financial
Orgs
E/Rs
Local
Education
services
Careers
advice
services
Etc
7. Work &
Education
6. Health &
Social
Care
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Original plan - from October 2014 - no new claims for HB instead housing costs were to be included as part of Housing
Credit in the assessment of a new all-inclusive Pension Credit
for new claimants
Push-back of UC implementation has meant the DWP has had
to defer “Housing Credit” development until 2017/18 at
earliest.
In the meantime, the housing element will continue be paid to
the landlord if that is the arrangement in place at the point of
migration
Due to women's pensionable date change, numbers of those
affected by Universal Credit, increasing as “pensionable age
>66 by 2020
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New structure for non-dependant deductions or Housing
Cost Contributions as they will be called under UC.
More exempted categories avoiding charges being made
Single rate of deduction for those aged 21 and working
£68.00 per month (i.e. £15.70 per week ).
No deduction for anyone unemployed under 25 years of age
or in receipt of Pension Credit age
Those currently 25 and over and unemployed will experience
hike to £15.70 fro £13.60
Amending regulations introduced - Under 25’s on UC to pay
nothing.
NB – Non-Dep Couples are each entitled to a bedroom in the
size criteria but each has to have a HCC made unless they fall
into an exempt group (Blind, DLA/PIP etc.).
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52 week provision dropped to 26 for most
claimants
People fleeing threat/fear of domestic violence still
52 weeks
“Existing live claim” - Prisoner claims entitled to 26
weeks maximum
First-time UC claimant moving to prison – no
protection.
4 week benefit run-on for those securing a job inexplicably ends!
4 weeks overlapping provision will be restricted to
those unable to move due to adaptations.
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“Claimant commitment” agreed with Job Search Coach clearly setting out
what is expected of claimant.
https://www.gov.uk/government/uploads/system/uploads/attachment_data
/file/254541/uc-and-your-claimant-commitment.pdf
It’s now a “condition of entitlement” so no signed agreement, no UC!
ESA recipients, capable of doing so, may be required to take part in workrelated activity to help them prepare to move into work;
Lone parents whose youngest child has reached the age of 1 but under 5 will
be expected to maintain contact with job market. After five he/she will need
to actively seek work unless they are severely disabled or have a health
condition which prevents them working, or are a carer for a disabled person;
and
Couples with youngest child five or more, and where neither partner is
disabled or has a health condition which prevents them working or is a carer,
will need to make a joint claim to Jobseeker’s Allowance, requiring both
partners to actively seek work.
Sanctions – Loss of benefit for non-compliance – 4 weeks; 13 weeks and up
to 3 years.
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New rules of “Claimant Commitment” rolled
out nationally. New “Help to Work”
programme effective from April 2014.
1 million sanctioned between Oct12-October
2013.
Guardian video report on how the sanctions
are being applied:
http://www.youtube.com/watch?v=0XLgg75s
tn4
Numbers expected to rise considerably as
couples and dependants are affected.
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Another period of uncertainty and worry on a number of levels
Mixture of tenants on HB/LHA or UC or Pension Credit.
Liaison difficulties with DWP “elephant in the room”
◦ Regional Office delivery
◦ Poorly trained staff; difficult to deal with, particularly at armslength
◦ Tendency to hide behind cloak of “confidentiality” and “Data
Protection”
◦ Unwillingness to accept “mandating” due to perceived “conflict of
interest.
Safeguard uncertainty at present and reliance on “guidance” as
opposed to regulations.
Landlords/tenants NO rights of appeal – major setback!
Will undoubtedly experience an Increase in rent arrears, and costs
associated with collection and recovery etc.
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Universal Credit Regulations 2013
http://www.ucadvice.co.uk/housingassociations/2013/06/universal-credit-regulations-2013
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UC Briefing Note
http://www.ucadvice.co.uk/housingassociations/2013/08/universal-credit---advice-for-frontline-staff
UC Bulletins
http://www.ucadvice.co.uk/housingassociations/subsection/bulletins
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UC discussion forum
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http://www.ucadvice.co.uk/housing-associations/forums
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