1 Welfare to Work Convention Manchester 9 and10 July Universal Credit - breakout sessions

2 The Reform Story

3 Overview (1) The Reform Story “A system that was originally designed to support the poorest in society is now trapping them in the very condition it was supposed to alleviate” Iain Duncan-Smith, Secretary of State for Work and Pensions The Welfare Reform Act introduces the most fundamental reforms to the social security system for 60 years. It aims for a simpler, fairer benefits system and to ensure work pays. Money needs to be targeted more effectively; we have to ensure that support continues to be available to those who need it most. Employment must be an aspiration for everyone who is able to work. Our services need to change to reflect the diversity and complexity of the issues that many people in society face today, requiring more joined-up working across government and beyond.

4 Overview (2) The Reform Story We are introducing greater fairness to the welfare and pensions systems by making work pay and reinvigorating incentives to save for retirement, whilst protecting the most vulnerable – disabled people and pensioners. The nation’s finances also need to be put on a more sustainable footing – while this means making difficult decisions on tax and spending, we believe it is possible to do this and help people lift themselves out of poverty, and stay out of poverty, through work and saving backed by the right support and encouragement. Our Reforms will: - ensure people are always better off in work than on benefits - provide unconditional support for disabled people that need it - prepare the long term unemployed for the world of work - ensure people receive a fairer pension and are encouraged to save for retirement - support separating families.

5 JanuaryThe Shared Accommodation Rate was extended to under 35’s MarchSocial Justice: Transforming Lives published AprilJobseeker’s Allowance Domestic Violence Regulations came into force »Local Housing Allowance rates frozen May Time limiting for Employment and Support Allowance claimants in the Work Related Activity Group came into effect Lone Parent Income Support entitlement changed for new and repeat claims Direct mail activity alerting claimants to the fact they may be affected by the benefit cap began Tougher benefit fraud administrative penalty came into force The Story so far: January - May 2012 The Reform Story

6 May-NovemberLone Parent Income Support entitlement changed for existing claims June Direct Payment Demonstration Projects began JulyLocal authority/DWP data sharing regulations to support welfare services came into effect AutumnUniversal Credit local authority pilots began October The revised Jobseeker’s Allowance sanctions regime implemented Civil penalty for negligently giving incorrect information / failing to report a change in circumstances came into force DecemberThe revised Employment and Support Allowance sanctions regime was implemented 2012 child maintenance scheme opened on a pathfinder basis The Story so far: June - December 2012 The Reform Story

7 January Single Tier Pensions White Paper published AprilUniversal Credit Pathfinder – start of early Universal Credit rollout in Manchester and Cheshire areas Benefit cap came into force for new and existing claimants in Bromley, Croydon, Enfield and Haringey local authorities Removal of the spare room subsidy came into force Controlled start for new claims to Personal Independence Payment for those living in the North West and parts of the North East of England Introduction of Localised Support for Council Tax Community Care Loans and Crisis Grants abolished and new Local Welfare Provision introduced Publication of Social Justice: transforming lives – one year on JulyRoll-out of Universal Credit in Wigan The Story so far: 2013 The Reform Story

8 Social Justice The government published its Social Justice strategy “Transforming Lives” in March Previous approaches to tackling disadvantage and social exclusion have focused on increasing income levels of poorer families to bring them above a notional poverty line. More working age adults live in poverty than ever before. Social Justice sets out new approach to understanding and tackling the root causes of poverty rather than its symptoms. Social Justice principles will increasingly influence our overall direction, our policies, and the delivery of DWP services. Social Justice

9 Welfare Reform and Universal Credit A policy A benefit A gateway A platform An ambition that tackles welfare dependency, poverty and worklessness by making work pay that replaces a complex system of working-age (in/out work benefits and credits) with the Universal Credit and a single set of rules that together with our employment support programmes, helps people into work largely self service; internet-age and digital - whilst continuing face-to-face support for those who need it transforming lives and society through work

10 Universal Credit (UC) replaces six in work and out of work benefits UC is formed around a new ‘claimant commitment’ which sets out what is expected in return for assistance Claimants will be able to claim their benefits online A single payment will be made to a household rather than an individual. This will include housing costs. It will be paid monthly, in arrears. As claimants earn more money, financial support will be withdrawn at a slower rate than is the case under the current system. Local support will be available to help claimants where appropriate, through DWP and local authority delivery partnerships Universal Credit – the service

11 Preparing For Universal Credit Local Authority Pilots John Davis 10 July 2013 Welfare to Work Convention

12 Local Authority Led Pilots Aim to explore approaches on how local expertise can support residents to claim Universal Credit, and so: a) encourage access to online support independently; b) improve financial independence and managing money; c) deliver efficiencies and reducing fraud & error; and reduce homelessness. North Dorset Rushcliffe Melton Bath & NES Oxford Lewisham West Lindsey Caerphilly Newport Birmingham North Lanarkshire West Dunbarton Oldham Wigan Dumfries & Galloway Developing and testing

13 Local Authority Led Pilots Scope The following key capabilities are reflected in the 12 pilots:  Digital inclusion – promoting access to online services and reducing the need for mediated support to achieve channel shift  Financial inclusion- helping claimants prepare for and access work opportunities to promote financial independence, including budgeting support  Work focus – helping claimants to prepare for and access work opportunities  Reducing homelessness- by supporting claimants to secure and retain suitable accommodation  Minimising the risk of fraud and error in the benefits system  Simplicity for the claimant – through Triage, providing a smooth, tailored service for those with ongoing complex needs  Delivering efficiencies- such as estate rationalisation and reducing administrative costs.

14 Digital - challenges Not all Customer Groups have access to the internet Resistance from some customers to use online services for benefit claims Low level of awareness amongst claimants about digital by default Supporting people to go online takes time/resource Lack of personal accounts

15 Digital - pilot area responses Provide network of Internet Enabled Public Access Points in appropriate locations Provide WiFi access points across locality Marketing of services Channel shift policy Provide initial mediated support Invest in staff training

16 Budgeting Support - challenges Multiple debt issues Reluctance to attend group sessions Availability of transactional bank account and identity verification Timing of support Preventative challenge

17 Budgeting Support - pilot area responses Involvement through questionnaires/visits support shown to be more effective Involve local Credit Union/ CAB/ Money Advice/local partners Co-ordination of services Run community based groups Develop income maximisation policy

18 Partnership/Work Access - challenges Lack of awareness that work pays Lack of co-ordinated approach Data sharing and IT challenges Cultural change for staff to support claimant’s independence Integration of services

19 Partnership/Work Access - pilot area responses Positive partnerships between JCP and local authority are vital Co-locating agencies provide support and single point of access Design services to meet customer need Provide internet access to support job search Undertake 2 “better off in work “ calculations Host job fairs Integration of housing and employment support

20 Vulnerable Claimants - challenges Effective triage essential to identify individuals Lack of engagement by those most affected Existing partnerships do not fully facilitate effective joint delivery Scoping of provision

21 Vulnerable Claimants - pilot area responses Work in partnership with other agencies to provide customised support Involve partners in identifying key customer groups Actively engage with customers in appropriate surroundings Develop different approaches Map partnership activity and assess quality

22 Local Authority Led Pilots Update July interim findings – Oct 2012 > March 2013 Aug 2013 – full report Looking Ahead Autumn regional UC Pilot learning seminars for councils to capture and share learning