Universal Credit- Employer Presentation Updated 27 July 2015

2 Universal Credit Universal Credit is a new service designed to make work pay Universal Credit supports people who are on a low income or out of work, and ensures that people are better off in work than on benefits Universal Credit replaces some in work and out of work benefits, making it easier to take short-term or part-time work, which can be a crucial step on the road to long-term employment

3 Universal Credit national expansion Universal Credit rollout began on 29 April 2013 in Ashton-under-Lyne in Greater Manchester. The national roll out to every jobcentre is for single, new claims to JSA. The national roll out will not include couple or families. National roll out will follow LA boundaries. The planning assumption is that Devon will roll out from 9 th November These will be outlined in a Delivery Partnership Agreement Managed migration of existing claims will follow at a time to be determined. A list of Local Authorities and jobcentre areas that will begin to deliver Universal Credit can be found at: universal-credithttps:// universal-credit

4 Universal Credit and how it benefits employers Makes work pay – allowing people to keep more of their money as they increase their hours of work Supports a more flexible labour market – ends the 16hour rule allowing people to adapt their hours of work more easily to suit employer needs and helps more people enter the labour market Helps people increase their hours and earnings - an opportunity and a challenge as we look to build sustained employment and financial independence Uses PAYE in real time information (RTI) – a change in the way earnings are handled by HMRC, which reduces the burden of reporting for employers. The new system provides DWP with the information to adjust the amount of Universal Credit any employed claimant receives.

5 Making Work pay Universal Credit helps to ensure people are better off in work than on benefits by: 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.

6 Example: rent of £85 per week

7 Example: rent of £110 per week

8 Working Together DWP Employers Understanding what employers think – through structured insight work, regular engagement and events at national and local level Influencing policy and delivery – taking employer views on board as we develop the Universal Credit policy, design and build Supporting implementation – ensuring employers are aware of the affect Universal Credit may have on employees and when Consultation – ensuring we communicate effectively with the employers who may be most affected

9 Engaging with employers Products in UC Partner Toolkit at Employer video “Universal Credit in the hospitality industry” Judi Leavor, Center Parcs Info graphics information guides videos social media content working with HMRCemployer events