Universal Credit Full Service Clive Davies

Going from Live Service to Full Service New Claims Single people who would have claimed JSA in the previous system Initial claim made online Full Service: All claimant groups Whole claim managed digitally In Newcastle City Jobcentre only from 25th May 2016

Full Service – Eligible Claimants Housing Benefit Child Tax Credits Income based JSA Working Tax Credits Income Support Income based ESA The service will be available for all claimant groups from the start. The Full Service: The service will incorporate all claimant types making a new claim, and reporting certain changes of circumstances. - The same policies, the same drivers for cultural change, the same outcomes as the current service. However it is new technology, it's about managing an online account and providing a full service – not an IT system. - The online account means everyone has an individual log in, including partners, although their claim is as a household - Essentially the Full Service is adding an additional digital element to Universal Credit - The Full Service service will be available for all client groups from the start - It has always been the intention to have an online element for Universal Credit The service will be available to customers in the Newcastle City JC from 25th May The service will initially be available to claimants making a new claim, or certain changes in circumstances.

CHANGES IN CIRCUMSTANCE THAT WOULD TRIGGER A CLAIM TO UNIVERSAL CREDIT Change in employment status Change in family circumstances Other Move from out of work to in work over x hours (JSA or IS → WTC) Household becomes responsible for a child for the first time. (New claim to CTC) New/underlying entitlement to legacy benefit (Could potentially trigger a new claim to all benefits) Move from working more than 16 hours to working less than 16 hours (WTC → JSA or IS) Change of address in the relevant postcode area that requires a new claim to HB (New claim to HB) Attending court/jury service (JSA → IS) Move from out of work to sick (JSA or IS → ESA) Out of work Lone Parent becomes couple parent (IS → JSA) Ceased full time education Move from sick to out of work (ESA → JSA or IS) Out of work couple parent with child under 5 becomes lone parent Remanded in custody Move from sick to working more than 16 hours (ESA → WTC) Partner leaving/joining household Income and/or capital goes over threshold (the threshold differs for each benefit) Move from in work to reduces number of hours to sick (WTC → ESA) Claimant is within 11 weeks of birth of child (JSA or ESA → maternity pay) – DN: maternity leave still counts as remunerative work   Move from permitted work to permanent work or increase hours to above 16 Out of work Lone Parent’s child reaches the age of 5 Take on full time caring responsibilities (new claim to IS) Claimant is no longer a full time carer ( IS → JSA) Migration from live to full digital – existing UC claimants Natural migration - CoCs

Claimant opens account to claim UC online Claimant opens account to claim UC online. It’s the claimants account to manage and interact with the DWP. Support continues digitally until claimant is on a zero payment. However if their situation changes, they can report this online. Claimant may attend claimant commitment interview dependant on workgroup. Here they will receive tailored support from a work coach. As the claimant finds work they can report this online and still receive support as their UC entitlement decreases. The service adapts to claimants circumstances and the coaching channel shifts with it. The more self sufficient – the more digital the interaction A relationship is built with a mixture of face to face and digital / remote coaching using To Do’s and Journal entries. Payments are shown too. With Universal Credit Full Service we have - Fully digital service from the start of the claim. A single transactional on-line account from which claimants can make and manage their claim; the claim can be saved as they go along and does not need to be completed all at once. There is a single view of the claim, visible to both claimant and staff This enables remote support for claimants, if a claimant is struggling to complete a claim or report a change of circumstances. Level of face to face support depending on the claimants workgroup, and individual need. Over 50% of claimants making claim via tablet or a smart phone.

Work focused Interview No work related requirements Conditionality Groups NB: Legislation sets out what types of requirements can and cannot be applied to claimants depending on the legal conditionality group. Within these parameters, the actual requirements imposed and support available should be flexible and tailored. Working Enough Work focused Interview No work related requirements Work Preparation Light Touch Intensive Work Search Labour Market Regime Those whose earnings are over either the individual or household Conditionality Earnings Threshold (CET) OR self-employed and Minimum Income Floor applies Those not expected to work at present: This includes those too sick to work, over State Pension Age , those with significant caring responsibilities and lead carers with a child under 1 years old Those expected to work in the future but are currently nominated lead or responsible carers for children. This includes lead carers of a child over 1 year and under 3 years old Those expected to work in future but not expected to look for work at this stage. This includes those assessed as having Limited Capability for Work (LCW) and those who are the lead carer for a child 3 years or over and under 5years old Those whose individual or household earnings are above the Administrative Earnings Threshold (AET) but insufficient to take them above the relevant individual or household CET For those not working and those who are working but earning very low amounts who can work and are expected to take intensive action to secure work or more work. AET = £338 single, £541 couple CET = Expected hours (35 default for All Work req, 16 default for WFI & Work Prep groups) x NMW =weekly figure (x52/12 to give monthly) MIF = As CET but minus tax & NI – doesn’t apply during start up period (up to 12 months)

Personal Budgeting Support Support for claimants requiring budgeting advice. This will build on the Personal Budgeting Support (PBS) model in place for the Live Service where Your Homes Newcastle are delivering PBS for their tenants and Money Matters are delivering PBS for residents of other tenures Alternative Payment Arrangements Advances

Alternative Payment Arrangements For a minority of claimants, alternative payment arrangements may be required; these might For a minority of claimants, alternative payment arrangements may be required; these might include - include: paying the housing element directly to the landlord making more frequent than monthly payments splitting the payment within the household. For a minority of claimants, alternative payment arrangements may be required; these might include: The housing element of UC can be paid direct to the landlord instead of being paid monthly to the claimant, this will usually be identified by the service center agent at the start of the claim once the rent and housing costs have been verified. Typically this will be as the agent has identified arrears of two months or more. Under certain circumstances, payments can be made more frequently than monthly – more typically every two weeks. The money may be split between partners in the household if it is thought there is likely to be mis use or abuse of the monthly UC award. The decision to award an Alternative Payment Arrangement is made by the service center agent. This is subject to a review of no more than 12 months after the date of the award. We will also have the option to make rent payments direct to the landlord if a claimant reaches a certain level of rent arrears.

Alternative Payment Arrangements 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

Alternative Payment Arrangements Tier Two factors - Potential need for alternative payment arrangements No bank account Third party deductions in place (e.g. for fines, utility arrears etc) Claimant is a Refugee / 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

Universal Credit In Newcastle Financial Capability Forum 29 September 2016

Universal Credit in Newcastle Our Journey from 27 April 2015 Live Service 1st tranche New claims for single people who would otherwise have applied for Job Seekers Allowance In Newcastle we expected 4,035 new claims for Universal Credit in 2015/16 from both householders and non householders, this was only 1,700 Of the 4,035 new claims 20% of them i.e. 807 were expected from householders with housing costs, this was only 390

Universal Credit in Newcastle Our Journey from 27 April 2015 Of the 4,035 new claims :- 5% of them i.e. 202 were expected to need help with online support, this was only 31 5% of 75% of them i.e. 151 were expected to need personal budgeting support this was higher at 185 YHN applied for 88 APA (Alternative Payment Arrangement)

Universal Credit in Newcastle Our Journey continues… ‘Full’ Service in Cathedral Square Job Centre from 25 May 2016 and ‘Live’ Service continues in East & West Job Centres until ‘Full’ Service roll out in February/March 2017 New claims and changes for single people, couples and families who would otherwise have applied for or have a change in:- Income based Job Seekers Allowance Income Support Income Related Employment & Support Allowance Housing Benefit Working Tax Credits Child Tax Credits

Universal Credit in Newcastle Impact so far In Newcastle we are expecting 7,059 claims for Universal Credit in 2016/17 from both householders and non householders, this is 1,953 for Live Service and 5,106 for Full Service Of the 7,059 we expect 615 in Live Service and 3,217 in Full Service to have housing costs, so far in 2016/17 we have 640 In total since Universal Credit was rolled out in Newcastle we have 1,030 Universal Credit claims with housing costs, 430 in Live Service and 600 in Full Service based on our statistics not DWP

Universal Credit in Newcastle Impact so far of Universal Credit claims in 2016/17 416 are expected to need help with online support, so far we have helped 70 481 are expected to need personal budgeting support so far we have provided this to 99 YHN applied for also applied for 83 APA’s (Alternative Payment Arrangement) in total this is 171

Housing Benefit Impact Housing Benefit is stopped by the Council upon notification of a Universal Credit award from DWP There are problems associated with this process: Delays Duplication Inconsistent and contradictory paperwork Paperwork for other Councils ‘Hub’ problems Ineffective escalation routes

Housing Benefit Impact Impact in 2015/16 For 390 Housing Benefit claims that have been stopped and transferred to Universal Credit we provided support for 2,150 processes Impact 2016/17 so far For 640 Housing Benefit claims that have been stopped and transferred to Universal Credit we provided support for 1,681 processes Beyond 2017/18 Impact beyond this is unknown other than roll out will continue until 2018. Working age Housing Benefit claims that do not naturally transfer to Universal Credit will stay with the Council & will be migrated to Universal Credit between 2019 & 2022 on the ‘planned migration’ phase. We have 2,987 Housing Benefit claims that do not include any qualifying benefit for Universal Credit and are uncertain about these. Pension age Housing Benefit, Working and Pension Age Council Tax Reduction as well as Discretionary Housing Payments and Crisis Support will remain with the Council indefinitely

Council Tax Reduction Scheme Universal Credit does not include an element for Council Tax Reduction We expect that customers applying for Universal Credit with Housing costs will have Council Tax costs There is no automatic qualification Customers will need to apply separately and we need you to encourage and promote Council Tax Reduction applications to:- Prevent debt and collection costs Protect Council Tax Reduction budget As at 31 August 2016 we have 890 Council Tax Reduction claims with Universal Credit as income out of 1,030 Housing Benefit claims stopped Work with your Council to ensure customers receive Council Tax Reduction

Customer Impact Confusion of ‘live’ and ‘full’ service Confused about Universal Credit, payment periods, conversion to monthly All current ‘Live’ Universal Credit claims will need to transferred into ‘full’ service via a new claim to the Digital system So far 90 Customers in receipt of Universal Credit have a Discretionary Housing Payment award and there are 5 to assess So far 73 Customers have received a Crisis Support package to mitigate delays in receiving their Universal Credit payment or for errors in their award to be corrected These are recurring issues and it appears that’s lessons not learned and knowledge not transferred for pilot, pathfinders and live sites

Partnership Agreement DWP ask Council’s to enter into a Partnership Agreement to deliver the following services:- Support for the Universal Credit Service Centre Personal Budgeting Support for customers Digital Upskilling Support for customers The Agreement is signed locally but is a National template and cannot be amended and funding associated with it is also agreed Nationally and cannot be renegotiated Funding is less than adequate in Newcastle

Universal Credit: Your Homes Newcastle – experience and impact

Approach Notified of UC claims via staff, HB and tenants Centralised team overseeing cases and providing support to Hub specialists Co-locating within the job centre plus sites Providing personal budgeting support Development of processes and systems

Current Position 840 cases numbers currently open (460 Full Service) 83.6% collection rate Arrears on account £475,077 Arrears solely down to UC £231,958

Recent Activity Project Plan Cumulative Impact of Welfare Reform Budget and Better off calculator for staff and customer use Trusted Partner Service Interactions with customers Partnership working

Challenges Constant moving timescales causing operational issues, i.e. make scalable Lack of information and consistent messages from DWP Full Service, Monthly DP schedules Knowledge within the UC service Delivery Centres Wider Welfare Reforms and future impacts

Tenant Feedback Challenging, complex and confusing It was hard and it still is…I made my first claim beginning of December and my first payment came through 9th January. I had no money in my pocket.” The monthly budgeting the biggest difference – I can’t manage monthly.” I didn’t worry before I was on universal credit, I knew the rent was paid and it done and dusted and now I’ve got to think about it."

Donna Gallagher Universal Credit Implementation Manager donna Donna Gallagher Universal Credit Implementation Manager donna.gallagher@yhn.org.uk 0191 2781935 Jayne Henderson-Muse Service Manager Revenues, Benefits & Exchequer jayne.henderson@newcastle.gov.uk 0191 2778850