PLUS Project Strategic Forum Universal Credit PLUS Project Strategic Forum www.homeless.org.uk Let’s end homelessness together

How much do you know about Universal Credit? Nothing A little A lot Expert PLUS Project Strategic Forum www.homeless.org.uk Let’s end homelessness together

Overview What is Universal Credit? What does it aim to achieve? Which benefits does it include? How do you make a claim? How will claimants be paid? When will full service be in my area? What are the potential problems and solutions? Universal Credit www.homeless.org.uk Let’s end homelessness together

What is Universal Credit? Universal Credit (UC) is a new model of administration and delivery of welfare benefits. It is taking a number of current benefits and putting them into one single benefit. These will be administrated by DWP. It changes the way that benefits are paid. www.homeless.org.uk Let’s end homelessness together

What does it aim to achieve? Simplify the benefit system Incentivise work Encourage people to manage money better Redress effect of welfare cuts on lower incomes Take people out of poverty www.homeless.org.uk Let’s end homelessness together

Which benefits does it include? ESA (LIMITED CAPABILITY FOR WORK ELEMENT) ESA (LIMITED CAPABILITY FOR WORK RELATED ACTIVITY ELEMENT) JSA OR INCOME SUPPORT (STANDARD ALLOWANCE) HOUSING BENEFIT (HOUSING COST ELEMENTS) WORKING TAX CREDITS CHILD CARE CREDITS

How do you make a claim? Digital by Default Make a claim on-line Everything through journal Can make claim by phone Not encouraged Takes between 30 – 60 mins Checklist: https://www.citizensadvice.org.uk/Documents/Advice%20(public)/beta/UC-checklist-applying.pdf Online tutorial: https://tinyurl.com/loj9pol www.homeless.org.uk Let’s end homelessness together

Conditionality and sanctions Work-focused requirements where appropriate Can be 100% of standard allowance for 3 months (refusing a job offer) Can be 100% up to 3 years Still subject if earning 35 hours National Minimum Wage “Newly homeless" UC claimants can be given a period of "easement" from job search requirements Basic actions to show addressing “accommodation aspect” of their homelessness www.homeless.org.uk Let’s end homelessness together

How will claimants be paid? No payment of first seven days for JSA type claimant One monthly payment of entire benefit 5 weeks before first payment Paid to one bank account in the household Housing costs paid to tenant, not landlord One month backdating www.homeless.org.uk Let’s end homelessness together

When will full service be in my area? In rollout areas All new claims, all claimant types Or change of circumstance All areas are expected to have the full service for all new claims by mid-2018 Then migration of existent claimants Completely rolled-out with full migration of existing claimants by 2021 Current timetable: https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/571711/universal-credit-transition-rollout-schedule-phase-4-to-6-2017-to-2018.pdf www.homeless.org.uk Let’s end homelessness together

Remember the lobster pot principle Once a person has claimed Universal Credit they cannot go back to JSA or ESA. They can only go back to Housing Benefit if they move into supported housing This means you may find you have some people on UC and some people still on JSA or ESA in your client group at the same time www.homeless.org.uk Let’s end homelessness together

Problems and solutions www.homeless.org.uk Let’s end homelessness together

Problems… Difficult to make claim online Lack of IT facilities/support Long passwords Long wait for initial payment Month delay Waiting days Opening bank accounts No UC for short term stays Falling into rent arrears Payment direct to claimant Large monthly sum Lack of money management support Difficult to advocate for people www.homeless.org.uk Let’s end homelessness together

Specified Accommodation exempt … Solutions? Most people in hostels or supported housing will get Housing Benefit rather than the housing cost element of UC to pay their rent. Currently consulting on changes, shadow year 2018 Problem: Sometimes money is being paid through UC. Leading to large-scale overpayments. Definitions: http://www.sitra.org/documents/specified-accommodation-briefing/?preview=true Specified Accommodation exempt www.homeless.org.uk Let’s end homelessness together

Waiting days exceptions … Solutions? have been entitled to a jobseeker’s allowance or an employment and support allowance within the 3 months ending on the relevant date making a new claim because their relationship status has changed (e.g. two single people making a claim as a couple) terminally ill have recently been victims of domestic violence care leavers aged 16 or 17 and without parental support have been a prisoner within the month ending on the relevant date Waiting days exceptions www.homeless.org.uk Let’s end homelessness together

Short Term Benefit Advance … Solutions? Make a new claim A change of circumstance In cases where it is impractical for benefit to be paid on the due date Repayment: For most people the maximum repayment will be 3 months. In special circumstances a 6 month period will be allowed Short Term Benefit Advance www.homeless.org.uk Let’s end homelessness together

Alternative Payment Arrangements … Solutions? If someone gets into 2 months arrears they should be switched back to direct payment to landlords Also option for fortnightly payments Can request “Split” payments within a “benefit unit” (so all the money does not go to one person) DWP staff will assess who gets a payment exception and for how long. Not available through choice and relies on honesty and disclosure May be identified at the outset when personal budgeting support is decided Alternative Payment Arrangements www.homeless.org.uk Let’s end homelessness together

Alternative Payment Arrangements Exceptions – Tier 1(highly likely/probable) 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 http://data.parliament.uk/depositedpapers/files/dep2013-0266/guidanceonpbs.pdf www.homeless.org.uk Let’s end homelessness together

Alternative Payment Arrangements Exceptions – Tier 2(less likely/possible) 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 www.homeless.org.uk Let’s end homelessness together

Any successes around… Supporting people to make claims online? Fast-tracking payments? Opening bank accounts? Exception from waiting days? Manageable repayment of Short Term Allowances? Alternative Payment Arrangements? Advocating? www.homeless.org.uk Let’s end homelessness together

Case study Mike is living in a homeless hostel. Because, legally this is Specified Accommodation (supported housing) he receives Housing Benefit to pay the rent. But UC for his Standard Allowance. As he is homeless he gets fortnightly payment of Standard Allowance He gets offered a non-supported housing flat in a different local authority which has full UC service. His moving causes his HB claim to end. He now has to claim Universal Credit for all his benefits including his rent. Because he has recently been homeless he should have a good chance of his UC rent component paid directly to her landlord. He should also be able to get his standard allowance (the JSA equivalent amount) still paid fortnightly www.homeless.org.uk Let’s end homelessness together

PLUS Project Strategic Forum Welfare reform update PLUS Project Strategic Forum www.homeless.org.uk Let’s end homelessness together

Welfare reform update (UC) Universal Credit taper to be reduced from 65 per cent to 63 per cent Universal Credit requirements for parents to look for work Benefit Cap exemption for Universal Credit claimants changing Tax Credits and Universal Credit two child limit Tax Credit Family Element removed Universal Credit Youth Obligation Universal Credit Housing Costs Element removed for young people From April 2017 www.homeless.org.uk Let’s end homelessness together

Housing costs (18-21s) 18 to 21 year olds will no longer be entitled to the housing cost element of Universal Credit, unless they can prove they meet an exemption No immediate impact on funding of supported housing, because this is paid through Housing Benefit. The removal of housing costs will only apply to people making new claims from April 1st 2017 in Universal Credit Full Service areas Overview www.homeless.org.uk Let’s end homelessness together

Housing costs (18-21s) Exceptions No work-related requirements Victims of domestic violence Care leavers Temporary Accommodation In work, subject to minimum earnings requirement Left work up to six months previously, subject to minimum earnings requirement Young parents Those for whom ‘it is inappropriate to live with each of their parents.’ Source: https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/604884/adm6-17.pdf Exceptions www.homeless.org.uk Let’s end homelessness together

Housing costs (18-21s) Inappropriate to live with parents Owed the statutory homelessness duty Helped under LA housing operations services, new prevention and relief duties of the Homelessness Reduction Bill (in England) / Housing (Wales) Act 2014 Moving on from temporary or supported accommodation Supported by a 3rd party Rough sleepers or those ‘sofa surfing Source: https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/604884/adm6-17.pdf Inappropriate to live with parents www.homeless.org.uk Let’s end homelessness together

Housing costs (18-21s) Proving exceptions Standard claims process (e.g. if a parent). ‘Inappropriate for them to live with their parents’: Conversation with a Job Centre Plus Work Coach. Light touch: not expected to provide documentary evidence. Supporting evidence may also come from appropriate third party. Flexible and determined at local level. Source: https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/604884/adm6-17.pdf Proving exceptions www.homeless.org.uk Let’s end homelessness together

Welfare reform update From April 2017 Tax Credits and Universal Credit two child limit Personal Bereavement Support Payment ESA permitted work limit removed ESA sanctions reduced ESA Work-Related Activity component abolished Personal Independence Payment From April 2017 www.homeless.org.uk Let’s end homelessness together

Funding of supported housing Opposition to LHA as basis Supported Housing Allowance Banded Sector develop bandings Local top-up by exception National standards Registered for inspection Funding ring fence Pilot No explicit view on short-term accommodation Committee report www.homeless.org.uk Let’s end homelessness together

Chris.brill@homelesslink.org.uk @ChrisB_HL Thank you! Chris.brill@homelesslink.org.uk @ChrisB_HL www.homeless.org.uk Let’s end homelessness together

What we do Homeless Link www.homeless.org.uk Homeless Link is the national membership charity for organisations working directly with people who become homeless or who live with multiple and complex support needs. We work to improve services and campaign for policy change that will help end homelessness and secure a sustainable future for supported housing.   Homeless Link Minories House, 2-5 Minories, London EC3N 1BJ   020 7840 4430 Twitter: @Homelesslink Facebook: www.facebook.com/homelesslink © Homeless Link 2017. All rights reserved. Homeless Link is a charity no. 1089173 and a company no. 04313826. www.homeless.org.uk Let’s end homelessness together