Hub Team Bhavna Pattni, Senior Transformation Officer October 2018 Universal Credit Hub Team Bhavna Pattni, Senior Transformation Officer October 2018

What is Universal Credit? Universal Credit is a new, simpler, single monthly payment for people of working age which brings together some of the benefits and tax credits that claimants might be getting now, whether they are in or out of work.

When does Universal Credit Start Universal Credit full service will go live in Brent: November 2018 (Harlesden JCP) December 2018 (Wembley JCP)

Basic Principles of UC Claimants will be expected to apply for their benefits online. A single monthly payment paid direct to the household rather than an individual or the landlord. Paid monthly by BACS in arrears (5-6 weeks’ wait for first payment) Claims reassessed each month based on HMRC data Universal Credit requires claimants to accept a ‘Claimant Commitment’. This sets out what is expected in return for receiving benefit. Designed to make work pay. As claimants earn more money, financial support will be withdrawn at a slower rate than is the case under the current system. Local support will be available to help claimants where appropriate.

ELIGIBLE CLAIMANT TYPES Housing Benefit Child Tax Credits Income based JSA Working Tax Credits Income based ESA Income Support Those on disability living allowance/personal independence payment will continue to be paid along with Universal Credit payment. The service will be available for all claimant groups from the start. The service will initially be available to claimants making a new claim, or certain changes in circumstances.

Who is Excluded from Universal Credit All new claimants or those with a change in circumstances will have to apply for Universal Credit instead of Housing Benefit except for: Claimants in Temporary Accommodation Households with 3+ children Changes in income amount (not income type) In-borough moves Pensioners

Universal Credit Claim Process Claims are made electronically, via a link https://www.universal- credit.service.gov.uk/postcode-checker on the GOV.UK website. The date of claim will be the date of submission. Claimants unable to use a computer to make UC claim will need to call the free DWP UC helpline 0800 328 9344. Once the claim has been accepted, the claim is then also maintained and changes updated electronically. The customer can log into their account via GOV.UK https://www.gov.uk/sign-in-universal- credit Once DWP receive a claim, they will contact the customer (usually by telephone) to arrange a face to face interview. will advise what information and evidence the claimant should take to the interview. If a claim is made as a couple, both members of the couple will both get appointments from the Jobcentre to go in and meet their work coaches. At the interview the work coach will discuss the job search and draw up a claimant commitment. The claimant will be given a copy of the claimant commitment to take away. If they do not accept the claimant commitment, the claim will be closed. JCP will advice about the support that is available, e.g. Budgeting and the claimant will be reminded about their responsibilities and what will happen if they fail to meet their responsibilities. After the interview, providing all the conditions of entitlement are met, DWP will process the claim and inform the claimant of the decision on their award via their online account.

What is needed to Claim UC Most people make their Universal Credit claim online. There is help available within the online claim form for people who need extra support. Customer’s can contact the Universal Credit https://www.understandinguniversalcredit.gov.uk/already-claimed/helpline/ if they: need help finding or using a computer to make a claim have questions about applying need information in alternative formats (for example, audio CD, braille or large print) To make a Universal Credit claim, customer’s will need: Email address Personal information (name, address and phone number) Details of their income and savings Bank account details Childcare costs details (if appropriate) Housing costs details (rent/mortgage costs, landlord/mortgage provider details etc) Internet access Proof of Identity

UC Claimant Journey

Universal Credit Consent Consent and representatives – customer can ask another person or organisation to deal with their claim if they feel they are unable to: find the information they need understand things about their claim They can do this at any point during their claim. They must give permission to allow another person or organisation to: act for them have access to relevant information about them This permission is called explicit consent. A representative is different to an appointee – it is not a legally based appointment. Explicit consent can be provided by you in writing, on the telephone or face to face. Explicit consent does not last forever, it usually lasts until either the specific request is completed or the end of the assessment period, after the one in which the consent was given.

Universal Credit Consent Appointees Another person or organisation can apply for the right to deal with the Universal Credit claim of someone who can’t manage their own affairs because, for example, they may be mentally incapable or severely disabled. Unlike a representative this is a legally based appointment. An appointee can be: an individual, such as a friend or relative – these are known as individual appointees an organisation or representative of an organisation, such as a solicitor or local council – these are known as corporate appointees To become a Universal Credit appointee, call the Universal Credit helpline - 0800 328 5644

Alternative Payment Arrangements Alternative Payment Arrangements (APAs) are available for claimants who can’t manage the standard Universal Credit payment. There are three types of APA available: direct payment of the housing cost element to landlords (known as managed payments) splitting of payment between members of a couple more frequent payment of benefit. How do landlords request an APA? DWP can set up a managed payment for claimants if the following conditions are met: a claimant is in arrears with their rent for an amount equal to, or more than, two months of their rent. a claimant has continually underpaid their rent over a period of time, and they have accrued arrears of an amount equal to or more than one month’s rent. If the DWP does not set up a managed payment, landlords can request one by completing a form on the gov.uk website

Recent changes in UC… UC continues to be subject to change - eg package of improvements for new claimants announced in the Autumn 2017 Budget, including: Abolishing the 7 waiting day period to reduce the wait for payment from 6 weeks to 5 from February 2018 Extending the repayment of advances from 6 to 12 months, and allowing people to receive 100% of their payment upfront from January 2018 Paying an additional 2 weeks’ of housing costs after the end of someone’s Housing Benefit claim when they move to Universal Credit from April 2018 Making it easier for claimants to continue having their housing costs paid directly to landlords once they are on Universal Credit.

Universal Credit Calculation Add Standard Allowance Add Elements Child Element, Housing Costs Element, Limited capability for work and work related activity element (LCWWRA), Carer element, Childcare Costs Element Universal Credit Maximum Amount Calculate earned Income (joint if partner on claim) Deduct Work Allowance A taper of 63% must then be applied to any earned income that is remaining after the work allowance has been deducted. Calculate Earned/Unearned Income Tariff Income from Capital Benefit Cap Deductions – including Benefit Cap Universal Credit Payment

Universal Credit – Passported Benefits Health Costs Customers qualify for help with health costs if the customer: Receives UC and had net earned income of £435 or less in the last UC assessment period; or Receives UC which includes an element for a child and/or you (or your partner) had limited capability for work and work related activity and had net earned income of £935 of less in the last UC assessment period If they are part of a couple, then these thresholds apply to their combined income According to the NHS website, currently not all health costs claim forms have a tick-box for UC. In those cases the box for income-based Jobseeker’s Allowance should be ticked instead. Free School Meals: In England, from 1 April 2018, a child may be able to get free school meals if the parent/guardian gets Universal Credit and the household's net income is no more than £616.67 in the preceding assessment period (there are rules which allow for averaging net income over a longer) see GOV.UK for more information. Other Benefits See https://www.gov.uk/government/publications/universal-credit-and-other-benefits-quick- guide/extra-support-for-universal-credit-claimants for extra support

UC - Conditionality and Sanctions There will be more conditionality and much tougher sanctions under UC. In order to receive UC, claimants must sign a ‘Claimant Commitment’. Failure to comply with a ‘Claimant Commitment’ could result in a reduction in the amount of UC the claimant receives. The sanction amount will be up to 100 per cent of the ‘standard allowance’. Claimants will not be able to receive more than one sanction within a two week period.

Universal Credit Disputes ‘Mandatory Reconsideration’ - this means the DWP will look at the decision again. Customer to contact them within 1 month of the date of the decision. They need to include: the date of the decision specific reasons why they disagree their name, address and National Insurance number Request UC online account Fill in CRMR1 form - https://www.gov.uk/government/publications/challenge-a-decision-made- by-the-department-for-work write a letter to the DWP - send it to the address on the decision letter call the number on the decision letter if near the deadline

Universal Credit Disputes – cont’d If customer still disagrees with the DWP’s decision, they can appeal to a tribunal. The tribunal will look at their reasons and make an independent decision. It’s overseen by a judge and separate from the DWP They can appeal the decision if they: have been paid the wrong amount have been refused Universal Credit when they should have got it shouldn’t have been sanctioned - for example, if they missed a work-focused interview because they were ill They have 1 month from the date on their mandatory reconsideration notice to apply to a tribunal. Customer needs to fill in an SSCS1 form on GOV.UK to ask for an appeal. The form tells them what to send with it.

Financial Assistance Financial assistance for residents primarily via the Department for Works and Pensions (DWP) – these include Budgeting Loans (for legacy benefits), Budgeting Advance (for UC) Financial support with personal budgeting provided through appointments with the CAB From April 2019 Citizens Advice will take on the responsibility for delivering a strengthened Universal Support service, The support scheme will help claimants through every step of the first five weeks of making a Universal Credit claim. It will offer people the comprehensive and practical support they need to get their first payment on time and be ready to manage it when it arrives. Other Financial assistance available : Discretionary Housing Payments (only when HB is payment) and Local Welfare Assistance ( one off crisis payments ) – however will be directed to the DWP in the first instance

DWP information Universal Credit helpline - 0800 328 5644 Universal Credit Overview - https://www.gov.uk/universal- credit/overview Universal Credit Guidelines - https://www.gov.uk/government/collections/universal-credit- detailed-information-for-claimants Universal Credit Reporting Change- https://www.gov.uk/universal-credit/changes-of-circumstances Benefits Calculator - https://www.gov.uk/benefits-calculators