Universal Credit Full Service Information for Private Landlords.

Universal Credit Full Service (UCFS) Roll Out Dates For South East Wales Local Authority Jobcentre Roll out Date Torfaen Cwmbran & Pontypool 12 July 2017 Newport 15 November 2017 Cardiff 28 February 2018 Monmouthshire & Merthyr Chepstow, Caldicot, Abergavenny & Merthyr 27 June 2018 Blaenau Gwent Abertillery, & Ebbw Vale 18 July 2018 Caerphilly Caerphilly, Blackwood & Bargoed 5 September 2018 Vale of Glamorgan Barry, Penarth 10 October 2018

Budget Changes Nov 2017 UC Live Service suspended from 31 December 2107 – no new claims Jan 2018 - customers can apply for advances from day 1 of new claim. February 2018 No waiting days from February 2018 April 2018 - Housing Benefit run-on (transition to the UC housing payment): an extra two weeks housing benefit before the first UC payment Making it easier for claimants to get a managed payment to landlords in the Private Rented Sector at the point of a new claim, for those that need it. From 20 December Private Landlords do not need customer consent to apply for an alternative payment.

ELIGIBLE CLAIMANT TYPES 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 but restricted to families with 2 children or less The service will initially be available to claimants making a new claim, or certain changes in circumstances.

Current planning assumptions for migration of legacy benefits and Universal Credit Live Service. Approximately 3 months after go live , Universal Credit Live Service customers will migrate to Universal Credit Full Service 2019 - 2022 remaining customers on Jobseekers Allowance, Employment and Support Allowance, Income Support, Housing Benefit, Working Tax Credits and Child Tax Credits will migrate

What is Universal Credit Full Service? New digital platform where customer can manage their claim – replaces all our current UC digital platforms - built as “Agile” Customer owns account - secure and password protected Its likened to accessing Facebook or Amazon New claim made online at GOV.UK - Universal Credit portal Can access to see when next payment is, make a benefit enquiry electronically, speak to their Work Coach electronically, record all their activities Closer relationship between Customer, Work Coach and Service Centre

Universal Credit – full service (continued) 6

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.

Some key differences for Universal Credit Full Service New claims to single, couples and families with 2 children or less for any of the 6 legacy benefits – will see new types of customers. Payment made to one household ( exceptions can apply) First assessment period will take 35 days - no waiting days from Feb 2018 5 regimes -will have specific customer journeys for out of work, in work , health and caring responsibilities Will pay child elements Will pay health/disability components Will pay support for mortgage interest as well as rent Can pay up to 85% of childcare costs

Change to Housing Costs for 18-21yrs Housing costs will not be payable to claimants who are aged between 18 and under 22 years old and all the following apply: are subject to all work related requirements are single, or a member of a couple claiming as a single person do not fall into a relevant exemption category

Universal Credit Full Service – Housing costs for 18-21yrs - Exemption Categories Claimant is responsible for a child or qualifying young person Claimants in late pregnancy - 11 weeks before due date Care leavers - Claimants who are deemed as inappropriate to live with their parents Claimants whose parents do not live in this country or are deceased – until move back Claimants in receipt of the care component of DLA middle /highest rate or PIP Daily Living Allowance - whilst in receipt. Prisoners – in custody less than 6 months Claimants living in supported accommodation /temporary homeless accommodation Claimants who have been subject /threatened with domestic violence

Housing Costs 18-21 yrs - exemptions continued Claimant in not subject to all work requirements Universal Credit claimants in Live Service areas Universal Credit claimants who move into a Full Service area or are transferred from Live Service to Full Service after 31 March who are in receipt of the housing costs element at the point when they move or are moved Universal Credit claimants in Full service, whose award began before 1 April and includes housing costs for an assessment period including 01 April 2017. This exemption does not apply on reclaims where there is a break in entitlement to housing costs after 01 April 2017 HB claimants who move into a Universal Credit full service area or are transferred into Universal Credit Full Service by DWP in roll-out, entitled to Housing Benefit at the point when they move or are moved Couples living together – both eligible for Universal Credit Lead Carers for children or qualifying young persons

Housing Costs 18-21 yrs - exemptions continued Temporarily abroad for less than 6 months for medical treatment or accompanying a partner/child who needs treatment Suffered a bereavement in the past 6 months ( spouse, partner, child) - 6 months Claimants with a physical or mental impairment , who is determined by DWP their expected number of hours is less than 35 hrs per week Those who have been working for 6 months and received 16 x national minimum wage - 6 month Claimants unfit for work – up to 14 days and exemption can be made twice in 12 months Claimant attending court / tribunal as a witness or party to proceedings MAPPA level 2 and 3

Housing Costs Evidence Required for Verification Private Landlords To be eligible for Housing Costs the claimant must provide sufficient documentation to verify three criteria Proof of address/residency Liability for housing payments Proof that payments have been made. This might be made through the following documents – Bank statements or utility bills Rent book or letter from the landlord Private Rented Sector (PRS) notes A claimant’s Universal Credit calculation will include either the total amount of rent they pay, or the Local Housing Allowance (LHA) rate, whichever is lowest. LHA rates are based on the number of bedrooms in a property. An amount will be paid based on the bedrooms that the claimant needs (up to a maximum of 4). Single claimants aged under 35 will usually receive only the Shared Accommodation Rate (SAR). There are some exceptions, for example Exemptions The SAR will not apply if the claimant: is responsible for a child or qualifying young person has non-dependants living in their household Armed Forces Independence Payments was previously in care - they must have been in care on their 16th birthday and now be 18 or over, and under 22 years of age. subject to multi-agency public protection arrangements (MAPPA) was previously homeless and they are: at least 25 years old on or have been on a planned resettlement programme typically provided by their former hostel accommodation. have spent three months or more living in a hostel for homeless people (this can be living in more than one hostel during this time and the three months doesn’t have to be continuous) is receiving a benefit because of a disability - they must be receiving one of the following: Disability Living Allowance (care component at the middle or higher rate) Personal Independence Payment (daily living component at the standard rate or enhanced rate) Constant Attendance Allowance (paid as part of Industrial Injuries Disablement Benefit or War Disablement Benefit) Non-dependents living with a claimant in PRS housing are expected to pay towards the rent. This is called a Housing Cost Contribution If there is a room allocated to a non-dependent, a Housing Cost Contribution (HCC) is deducted from the Housing Costs in respect of each adult non-dependent.

What does the customer need to do to claim Housing Costs? In addition, when a claimant is asked to verify their PRS rent we will also ask them if their housing benefit was being paid directly to their landlord prior to their UC claim and the reasons for this. This will allow our work coaches to have a conversation with the claimant to determine whether a managed payment to landlord APA for the UC claim may need to be applied, if appropriate. What does the customer need to do to claim Housing Costs? Customer asked to bring in housing cost evidence at Identity interview to be verified by Work Coach and sent to Service Centre for calculation and processing. Payment made at end of first assessment period unless any change of circumstances Housing costs unable to be verified at identity interview – Service Centre will be notified and will request the information from the customer through out the assessment period. If customer does not provide the evidence the housing cost element cannot be paid at end of first assessment period

Universal Credit Full Service – Support Available Personal Budgeting Support (PBS) This supports claimants transitioning into UC with budget management to enable them to manage their money and pay their bills on time, prioritising rent payments and Assisted Digital Support (ADS) Full service requires more digital capability from claimants to be able to make their UC claim and maintain their UC account

Universal Credit Full Service Alternative Payment Arrangements For a minority of claimants, alternative payment arrangements may be required; these For a minority of claimants, alternative payment arrangements may be required; these might include de: paying the housing element directly to the landlord making more frequent than monthly payments splitting the payment within the household. DWP 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 be identified by the landlord if, for example, there are significant arrears of rent. 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 misuse 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 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

Can have up to 100% of overall entitlement Advances and Process Advances of payment are now available from day one of new claim if in hardship or at anytime in life of claim if hardship occurs Can have up to 100% of overall entitlement Repayable by deductions up to 12 month period Advances can be made via their Work Coach, through the service centre and hopefully by Spring 2018, digitally online. Payments can be made within 24hrs but are mostly same day.

How are housing costs are paid direct to landlords? Rent Arrears Application for APA can be made on UC47 form from GOV.UK. Evidence pref required from claimant via journal but if in dispute consent not needed essential if in arrears Landlord will be set up as a third party creditor (if not already) Will be paid via CPS on a 28 day cycle. Managed Payment to Landlord Application can be made on UC47 form from GOV.UK Consent preferably required from claimant via journal but if in dispute consent not needed Bank details requested from the landlord. Paid calendar monthly direct into bank account via BACs at end of assessment period on monthly basis.

Escalation Process for Private Landlords In first instance Landlord should engage with tenant about the issue The tenant has access to their own information via their account. The can share this information with their Landlord if they wish to as this contains information about housing payments made. The claimant can ask for any more information via their online account , face to face or by telephone They can provide explicit consent via their journal ,face to face or by telephone for their personal information to be shared with their Landlord If you are unable to engage with your tenant you can contact the following Third Party number 0800 328 5644 you are unable to resolve the issue you can contact your Local Partnership Manager Caerphilly LA - Ceri Pritchard 07786 110452 ceri.pritchard@dwp.gsi.gov.uk

Useful reading information www. gov Useful reading information www.gov.uk/government/publications/universal-credit-and-rented-housing--2 www.gov.uk/government/uploads/system/uploads/attachment_data/file/583678/universal-credit-housing-costs-and-disclosure.pdf https://www.gov.uk/government/publications/universal-credit-and-you https://www.gov.uk/guidance/housing-costs-for-18-to-21-year-olds Strategic Landlord Engagement Newsletter UC.STRATEGICLANDLORDENGAGEMENT@DWP.GSI.GOV.UK