Roni Marsh and Danny Murphy Roni.marsh@gmail.com Universal Credit Roni Marsh and Danny Murphy Roni.marsh@gmail.com

Aims and objectives Aims To give delegates an overview of universal credit   Objectives By the end of the course delegates should be able to understand:  the two types of universal credit entitlement rules for UC in the claims process and timetable for the introduction of UC a simple calculation how new conditionality and sanctions will be applied the potential impact on clients

Exercise 1- True or False 1. Universal credit will replace all welfare benefits? False 2. Universal credit will be rolled out to everyone by 2020?  True 3. Universal credit can only be claimed online?  

Exercise 1- True or False 4. People who get PIP will be exempt from universal credit? False 5. People claiming universal credit will be expected to look for work, or more work, even if they are already working? True 6. Someone claiming universal credit will not be entitled to any benefit for the first 7 days of their claim?

Exercise 1- True or False 7. Universal credit claimants will not be able to apply for discretionary housing payment? False 8. Pensioners will be entitled to claim universal credit? True and False

Features of Universal Credit Reduce complexity/cost in benefit system For working age claimants Administered by the Department for Work and Pensions (JCP) More conditionality (claimant commitment) Part of wider welfare reform (ben cap, bed tax, PIP,)

Benefits affected Income support Income based jobseeker’s allowance Income related employment and support allowance Housing benefit Working tax credit Child tax credit

About Universal Credit Live service - available nationwide - gateway jobseekers Full service Initially a localised pilot Rolling out postcode by postcode Every claimant type Exceptions - exempt accommodation - 2 + children Backdating Waiting days and payments

Who can claim Universal Credit To be eligible for UC the claimant must: be aged 18 or over (with exceptions) be under state pension credit (SPC) age (but see below couples on page 8 for ‘mixed age’ couples) not be subject to immigration control be in Great Britain i.e. satisfy the habitual residence and right to reside test not be ‘receiving education’ (with exceptions) meet the income and capital rules accept a ‘claimant commitment’

Exercise 2 – Which could claim? A 17 year old boy who is estranged from his parents but is at college studying for GCSEs? Yes A 60 year old single lady who gets contribution based jobseeker’s allowance and rents her home from a housing association? A 19 year old who is not disabled, lives with his parents and is studying full time for A levels? No

Exercise 2 – Which could claim? A lone parent with 3 children who is working 8 hours per week? Yes A 35 year old man who is unable to work due to sickness and owns his own home? A single woman aged 23 who is working 24 hours per week?

Exercise 2 – Which could claim? An unemployed 24 year old who has refused to sign a claimant commitment? No A retired couple aged 68 and 60? Yes A couple aged 31 and 32 without children, one is working 17 hours per week and they rent their home privately?

Exercise 2 – Which could claim? A single person aged 55 who is caring for his disabled elderly mother who gets carer’s allowance and has no housing costs? Yes

Calculating universal credit Standard allowance Plus Elements Housing costs element childcare element

Housing costs contributions Owner occupiers Renters In custody Standard £70.06 per month Non dependant exemptions More than one home Housing costs before moving in

Exercise 3 – Which elements? 1. A lone parent with two children who works 30 hours per week, pays childcare costs to a registered childminder and rents her home. Standard allowance higher child element for eldest child lower child element housing costs element childcare element

Exercise 3 – Which elements? 2. A single disabled claimant with ‘limited capability for work’ (before April 2017) who lives in his mother’s house and gets carer’s allowance for looking after her. Standard allowance Carer element 3. A single claimant who rents a housing association property with a 3 month prison sentence. Housing costs element

Exercise 3 – Which elements? 4. A single disabled claimant (receives PIP standard daily living component but not assessed for limited capability for work) and lives in rented council accommodation. Standard allowance Housing costs element

Exercise 3 – Which elements? 5. A couple, both of whom have ‘limited capability for work’. One partner also has ‘limited capability for work related activity’ and gets the daily living component of PIP. The other partner cares for him. They rent their home. Standard allowance LCWRA element Housing costs element

Exercise 3 – Which elements? 6. A couple, one a British national, the other a recently arrived Australian national with limited leave to remain in Great Britain. They live in private rented accommodation. Standard allowance (single) Housing costs element

Capital First £6000 ignored no entitlement where £16000 Tariff income of £4.35 per month for every £250 or part thereof

Income Unearned income Ignored income – DLA, Child ben, lodgers Earned income – net of tax, NI and pension Self employed – min. Income floor

Work allowances Minimum disregard (entitled to housing costs element) Maximum disregard (not entitled to housing costs element) Single or couple without child(ren) £0 Single or couple with child(ren) £192 £397 Single or Couple with Limited Capability for Work Maximum disregard applies to owner occupiers or those who have no liability for rent Minimum disregard applies to those who have rental costs included in their claim

Surplus earnings & Benefit cap Claims last for 6 months How surplus earnings work Maximum amount allowed in benefits per month Exemption for those or children on AA/DLA/PIP Exemption for those in the ESA support group Not applied for 9 months if in last 12months average earnings of at least £430 per month

Example calculation 1 Single age 25 with disability Gets £442.65 per month contributory ESA with work related activity component Gets standard rate care of PIP No other income or savings 1 bedroom council flat with eligible rent of £500 per month

Example calculation 1 Step 1: Calculate the maximum UC Single age 25 with disability Standard Allowance £317.82 Gets £442.65 per month contributory ESA with work related activity component LCW element £126.11 1 bedroom council flat with eligible rent of £500 per month Housing Costs £500.00 Total Maximum UC = £943.93

Example calculation 1 Step 2: Calculate income No other income or savings No earned income £0.00 No savings £0.00 Gets £442.65 per month contributory ESA with work related activity component ESA £442.65 Gets standard rate care PIP PIP is disregarded £0.00 Total Income = £442.65

Example calculation 1 Step 3: work out UC entitlement Max UC = £943.93 Minus income = £442.65 Universal Credit entitlement = £501.28 Step 4: check for benefit cap Benefit cap not applicable as gets PIP UC entitlement = £501.28 per month Plus ESA (per 2 weeks) Plus PIP (per 4 weeks)

Example calculation 2 Lone parent With one child Works 10 hours per week earning £500 net per month Has savings of £7,000 Eligible rent is £600 per month for a 2 bedroom flat

Example calculation 2 Step 1: Calculate the maximum UC Lone parent age 30 Standard Allowance £317.82 Has one child (born 2014) Child element £277.08 2 bedroom flat with eligible rent of £600 per month Housing Costs £600.00 Total Maximum UC = £1,194.90

Example calculation 2 Step 2: Calculate income Works 10 hours per week earning £500 net per month Earned income £500.00 Take off Work disregard £192.00 Sub Total = £308.00 63% of earned income = £194.04

Example calculation 2 Step 2: Calculate income (Capital) Has savings of £7,000 Tariff income applies to £1,000 of savings (£4.35 per month per £250 of part thereof) 4 x £4.35 = £17.40 Add this to 63% of earned income = £194.04 Total income = £211.44

Example calculation 2 Step 3: work out UC entitlement Max UC = £1,194.90 Minus income = £211.44 Universal Credit entitlement = £983.46 Step 4: check for benefit cap UC is less than Benefit cap UC entitlement = £983.46 per month Plus Child Benefit (per 4 weeks)

Exercise 4 calculation for Maximum UC Lone parent aged 30 with no health problems) 2 children aged 14 and 8 Youngest child entitled to low rate DLA care Rent a home from council for £400 pcm

Exercise 4 calculation for Maximum UC Lone parent aged 30 (no health problems) Standard Allowance single over 25 = £317.82 2 children aged 14 and 8 Child element first child = £277.08 Child element subsequent child = £231.67 Youngest child entitled to low rate DLA care Disabled child element lower level = £126.11 Rent a home from council for £400 pcm Housing costs = £400.00 Total Maximum UC = £1352.68

Exercise 4 calculation for Maximum UC Single person aged 24 No other income/savings or health problems Eligible housing costs of £350 per month.

Exercise 4 calculation for Maximum UC Single person aged 24 (no health problems) Standard Allowance single under 25 = £251.77 Eligible rent £350 pcm Housing costs = £350.00 Total Maximum UC = £601.77

Claiming Universal Credit Paid monthly in arrears Bank/building society/Post Office Alternative Payment arrangements Changes effective first day of assessment period in which they occur/reported All overpayments are recoverable

Advance payments Advance (benefit transfer) Advance (new claim) Advance (change in circumstances) Budgeting advance Transitional protection

Exercise 5 – Quiz What is the overall capital limit for UC? a) None b) £16,000 c) £6,000   b) £16,000 How long can a claim for UC be backdated? a) one year b) six months c) one month   c) one month 3.How much is the housing costs contribution for non dependants in UC housing costs? a) None b) £70.06 c) depends upon their income b) £70.06

Exercise 5 – Quiz Carer’s allowance Personal Independence Payments 4. Receipt of which of the following benefits exempts a claimant from the benefit cap? Carer’s allowance Personal Independence Payments Contributory ESA (support group)   a) carer’s allowance b) Personal Independence Payments or c) contributory ESA (support group)

Exercise 5 – Quiz rent arrears alcohol problems learning difficulties 5. Which of the following may lead to ‘alternative payment arrangements’?  rent arrears alcohol problems learning difficulties claimant preference a) rent arrears b) alcohol problems or c) learning difficulties

Exercise 5 – Quiz 6. What help can a UC claimant request if they need a new cooker?  UC advance community care grant budgeting advance c) budgeting advance

Exercise 5 – Quiz 7. Sara’s assessment period starts on 5th of the month. She moves into rental accommodation on 20th January (assessment period 05/01/17 – 04/02/17) and notifies UC on the 7th of February. When is she paid the rental costs from? a) 5th January b) 20th January c) 5th February c) 5th February

Sanctions Conditionality Sanctions Hardship payments Appeals