Welfare Reform Overview NAOFA Conference October 2016

Universal Credit

Universal Credit - overview

Personal Budgeting Support – Alternative Payment Arrangements For a minority of claimants, Alternative Payment Arrangements may be required; these might include DWP will pay housing costs directly to the landlord (managed payment to landlord) making payments more frequent than monthly splitting the payment within the household Option to make managed payments directly to the landlord if a claimant reaches a certain level of rent arrears (usually 2 Calendar months / 8 weeks) Considered on a case by case basis and assessed on their individual needs The decision about whether an Alternative Payment Arrangement is suitable will be made by a Universal Credit Decision Maker through the Personal Budgeting Support process All Alternative Payment Arrangements are subject to review

Universal Credit full service It’s a whole service – work and benefit in one place Being built and developed using user feedback Being built by a team focused on the outcomes and purpose of UC Delivery is reprioritised based on evidence and feedback

How Universal Credit is expanding….. Universal Credit is now available in all 712 jobcentres across Great Britain and every local authority area: some full service (46 Jobcentres by December 2016), most live service as in Birmingham UC roll out to full service for all claims will now be completed by March 2022. This is due to the additional work necessary for all other welfare reform changes Nationally we will continue to roll out full service to 5 Jobcentres a month to June 2017 This expands to 30 Jobcentres in July 2017 There will be a break for Summer 2017 and then we will scale up to 55 Jobcentres amonth between October and December 2017 Then 65 Jobcentres month from February 2018 to September 2018 which will complete full service roll out for new claims The roll out schedule naming Jobcentres and linked local authorities for 2017/18 is due to be announced by November 2016: in time to inform LA budgets for that year The managed move of existing claims will now start in July 2019

Universal Credit - full service – The Story So Far Test the service 19th Aug 15 27 April 16 THORNTON HEATH, PURLEY & GT YARMOUTH CANTERBURY FULL SERVICE CENTRE 10 June 15 4TH Nov 15 LONDON BRIDGE SE1 5 23 March 16 MUSSELBURGH CROYDON CR0 4 26 Nov 14 SUTTON SM5 2 18 March 15 SUTTON EXPANSION SM6 7 SM6 8 10 June 15 SUTTON EXPANSION SM6 9 4th Nov 15 27 Jan 16 May 16 5 JOBCENTRE AREAS PER MONTH CROYDON EXPANSION CR0 2 HOUNSLOW Nov 14 May 15 June 15 Nov 15 Jan - April 16 May 16 onwards Test the service Improve Efficiency Make Scalable Transition

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.

Benefit Cap

Benefit Cap 2013 Benefit cap was introduced across Great Britain from 2013 to limit how much any one household receives in state benefits. The underlying principle is that someone claiming benefits should be no better off than many people in work. The policy as introduced in 2013 capped : Couples with or without children and lone parents at £26,000 a year; £500 weekly single adults at £18,200 a year; £350 weekly

Benefit Cap 2016 From November 2016 the benefit cap threshold will change; The rate for claimants living in the Greater London Boroughs and the City of London will be; couples with or without children, or lone parents with a child, £23,000 a year; £ 442 weekly; £1,917 monthly single adults £15,410; £296 weekly; £1,284 monthly The rate for claimants living elsewhere in Great Britain is changing to; couples with or without children, or lone parents with a child, £20,000 a year; £385 weekly; £1,667 monthly single adults at £13,400; £258 weekly; £1,117 monthly

Benefit Cap - exemptions Certain benefits and payments will result in exemption of households from benefit cap; these are effective under the current capping regime and will remain in place for the new cap levels. For current benefit the benefit cap does not apply where a household is entitled to Working Tax Credit. (including an underlying entitlement) or for UC where the household earns £430 or more each month. This reflects a key aim of the policy which is to increase the incentive to work. War widows and widowers are exempt from the cap.

Benefit Cap - exemptions Any of the benefits below in payment to any member of the household, will exempt the household from the benefit cap: Attendance allowance Armed Forces Independence Payment Armed Forces Compensation Scheme (AFCS) (Guaranteed Income Payments) before 6 April 2005 Carers Allowance (from November 2016) Disability Living Allowance Employment and Support Allowance where the support component has been awarded Guardians Allowance (from November 2016) Housing Benefit paid to households in “supported exempt accommodation” are disregarded from the benefit cap Industrial Injuries Benefits (IIB) LCWRA element of UC Personal Independence Payment (PIP)

Personal Independence Payment

Personal Independence Payment Reassessments

PIP where we are up to July 2016

Other benefit reforms

Other reforms April 2016 Personal Allowance increased to £11,000 for earnings Higher tax threshold increased to £43,000 National Living Wage set at £7.20 and hour Social Rented Sector rents reduced by 1% per year for four years JSA/ESA Work related Activity group and Income Support rates frozen for four years Child Benefit rates frozen for four years Family premium removed from Housing Benefit Pension Credit ‘Savings Credit’ not payable on new claims (You can still apply for Savings Credit on or after 6 April 2016 if you reach State Pension age before that date.)

Welfare Reform changes April 2017 Personal Allowance increases to £11,200 Higher rate tax threshold increased to £43,600 New ESA Work related Activity group claimants to receive the same rate as JSA recipients Social Tenants on incomes of above £40,000 in London and £30,000 elsewhere to pay market rents From September 2017 Free childcare entitlement doubled from 15 to 30 hours for parents of 3 and 4 year olds. April 2018 Support for Mortgage interest to become a loan