1 Paul Kilner DWP Universal Credit Programme

2 Universal Credit replaces six in work and out of work benefits Universal Credit is formed around a new ‘claimant commitment’ which sets out what is expected in return for assistance Claimants will be able to claim their benefits online A single payment will be made to a household rather than an individual. This will include housing costs. It will be paid monthly, in arrears. As claimants earn more money, financial support will be withdrawn at a slower rate than is the case under the current system. Real Time information (RTI) link with HMRC will facilitate this. Local support will be available to help claimants where appropriate. This will be provided through DWP and local authority delivery partnerships. The Universal Credit service – a recap

3 The Challenges For Claimants  Largely digital and self-service  A single monthly payment to household  Housing costs will be paid direct to claimant  It’s all about work For DWP  To create a digital platform that both meets the needs of people who are used to managing their lives online, whilst helping claimants who need extra support to get online  To ensure the right support for claimants who are unable to use online system  To develop a Personal Budgeting Strategy (PBS) for claimants who need personal budgeting support  To create a system capable of flexibility and continuous improvement  To co-ordinate across 3 major delivery organisations – DWP, HMRC and 400 Local Authorities  To convert 12 million claims to 8 million household accounts

4 Universal Credit - it’s all about work Universal Credit claimants are expected to use Universal Jobmatch, an intelligent job matching service, which helps employers to get the best fit for the jobs that they have on offer. Universal Credit aims to support job seekers to raise their expectations of what they can achieve, encouraging responsibility. Those who are fit and ready for work will be expected to look for a job on a full time basis dependant on circumstances. Universal Credit will encourage a new type of relationship between claimants and advisers. Advisers will support and challenge claimants to help them fulfil their potential, but will also be firm when required. Universal Credit

5 Rollout from Oct 2013 National rollout of Claimant Commitment to support cultural transformation –20,000 Jobcentre Plus advisers retrained to deliver claimant commitment and enhanced jobsearch support –10 in work conditionality pilots Progressive national roll out of UC to a further 6 Jobcentres across England, Scotland & Wales, with offices taking new claims to Universal Credit –Hammersmith, Rugby, Inverness (Nov 13), Bath, Harrogate & Shotton National rollout of improved digital services across Jobcentre Plus to improve online capability –6000 new computers will be installed across the country, embedding digital technology and ensuring that jobseekers become used to online transactions.

6 Universal Credit - development and testing Pathfinder Progressive National Roll-Out Direct Payment Demonstration Projects Local authority led pilots Claimant Commitment

7 Autumn UC local authority pilots began as part of UC testing. January 2013 ‘Learning the lessons’ early findings of Direct Payment Demonstration Projects Report available. April 2013 Pathfinder went live. October 2013 Progressive national roll out, and further testing begins Every eligible person claiming UC Key Dates July 2013 Pathfinder expands December 2013 Local authority led pilots complete Direct Payment Demonstration Projects complete

8 Engagement in Scotland. The Programme is engaging with: –Scottish Government – members of the Universal Credit Partnership Forum –Scottish local authorities – represented on Universal Credit local authority forums, the Convention of Scottish Local Authorities (COSLA) are members of the Partnership Forum, input from several Scottish local authorities to Universal Credit working groups –Universal Credit Scottish Advisory Group – a tri-partite forum for Scottish Government, COSLA and DWP, to consider the impact of Universal Credit in Scotland, share best practice and consider where better alignment is needed between welfare reform measures –Third sector and other stakeholders Scotland is represented in the testing of Universal Credit

9 Conditionality and the Claimant Commitment Commitment Co-operation Conditionality

10 Claimant Commitment – feedback from trials The Claimant Commitment has been trialled in the ‘live innovation’ site in Stretford Jobcentre- here’s what advisers have said about it: ‘It focuses the interview more on what the claimant needs to do’ ‘There’s more ownership because the claimant has actively contributed – so there’s more chance they’ll do what they say they will do’ ‘It shows that we have an interest in their customer journey therefore gaining their commitment’ ‘It’s bespoke as opposed to a generic JSAG’ ‘Claimants are more aware of the consequences of non–compliance’ Claimant Feedback – ‘they feel they are treated as an individual and that we do want to help them’

11 Direct payment demonstration projects Identifying what interventions best help tenants who go into arrears – e.g. different trigger levels, support strategies and a range of payment methods. Local authority led pilots Aim to explore approaches on how local expertise can support residents to claim Universal Credit, and so: a) encourage access to online support independently; b) improve financial independence and managing money; c) deliver efficiencies and reducing fraud & error; and reduce homelessness. North Dorset Rushcliffe Melton Bath & NES Oxford Lewisham West Lindsey Caerphilly Newport Birmingham North Lanarkshire West Dunbarton Oldham Wigan Dumfries & Galloway Edinburgh Wakefield Shropshire Southwark Torfaen Key: UC LA led pilots Direct Payment Demonstration Projects Developing and testing

12 Direct Payment Demonstration Projects (DPDP) The Direct Payment Demonstration Projects were implemented as part of UC preparations to be used as a test bed for budgeting and support as well as looking at key refinements to UC design Projects purpose in the first 12 months was to test: Impact of various trigger points and safeguards on social landlords; Safeguards for different groups of people Tenant communication strategies and test Landlords’ strategies for maintaining financial viability. Identify persistent under payment and the early intervention used before arrears reach trigger points.

13 DPDP the story so far…………… The project has already been instrumental in changing our thinking regarding the: Possible level of alternative payment arrangements required; Design of the arrears trigger; The need for funding budgeting support and; Most effective ways of delivering this

14 Management Information Early findings from the project have shown that from 6,168 tenants placed onto direct payment: Rent collection rates stood at 94% overall (current sector rate 95 – 96%) Across the areas rent collection rates varied from 91% to 97% 1533 tenants have been switched back to payments to their landlords as a result of reaching the arrears trigger point or due to early intervention Emerging findings: A large number of switchbacks have been due to partial payment of rent or persistent underpayment rather then full non-payment of rent Learning to date

15 Learning to date Communication Early and clear communication is essential Preference for personal contact Mix of communication channels Tenants need to understand their responsibility Support Tenant support has been resource intensive for landlords Bank accounts – more tenants have accounts than expected Not all accounts are viable for UC Direct Debits are not always the best payment option Jam jar accounts will help money management Landlords should recognise the potential increase in money advice their tenants will need The demand for increased support has led to a considerable upsurge in tenant contacts Tenants want to feel in control of their income

16 Learning to date Alternative payment arrangements/ vulnerability indicators The smooth transition into Universal Credit will depend on the DWP accurately assessing the claimant Accurate assessment of people’s support needs is critical The arrears trigger needs to be set to balance the risk for claimant and landlord Data sharing between the landlord and local Housing Benefit offices has been crucial Wider Welfare Reform Changes Areas are monitoring the impact on the introduction of both SRS and BenCap Early learning shows tenants affected by SRS who are on DPDP are generating less arrears of rent than those who are not on Direct Payment Potential factors influencing this: Less of a culture change for DPDP tenants as they are used to paying DPDP Tenants are more willing to contact their landlord if unclear Landlords have a more intensive /supportive relationship with DPDP tenants

17 Local Authority Led Pilots Aims - to support UC implementation by delivering learning about ways in which more collaborative working can reduce mediated support for claimants. The pilots were launched last autumn and are due to end by 31 December They are testing the following approaches: Service integration and simplicity for the customer Work focus Financial inclusion Digital inclusion

18 Digital Inclusion Financial support Reduce homelessness Access to work Customer support (Triage) Face to Face Rural aspects Dumfries & Galloway North Lanarkshire West Dunbarton- shire Key A primary aim of the pilot A secondary aim of the pilot A general aim of the pilot Key aims of pilots in Scotland

19 Learning and action to date Work Focus Some claimants believe that work does not pay Current culture does not always support work focus Reluctance in recognising the benefits of additional employment support Digital Inclusion Channel shift will take time and requires a culture shift by claimants and front line staff Claimants have limited digital capability and are unaware of free and accessible public access points.

20 Learning and action to date Service Integration and Simplicity for the Customer Many of the existing partnerships were not robust enough to deliver and required a greater level of engagement and understanding Substantial investment of time and resource is needed to develop the partnerships to required level Triage needs to be local and flexible to ensure best use of expert resource Financial Inclusion Claimants have differing definitions of debt and are reactive There is a reluctance to attend group personal budgeting sessions.

21 Universal Credit Pathfinder Pathfinder tests the end-to-end process for Universal Credit Teaches us how to improve our service offering before national roll-out Provides an opportunity for re-design, before extending the service and bringing in more complex cases Pathfinder commenced 29 th April 2013 Scope Pathfinder focuses on new single, unemployed people, with or without rented housing costs, in selected areas in Tameside, Wigan, Oldham and Warrington local authority areas Started with Ashton under Lyne, Wigan joined on 1 st July, with Oldham and Warrington due to start on 29 th July Pathfinder

22 Pathfinder update The majority of claims from Universal Credit claimants in Ashton-under-Lyne have been made online Feedback from Oldham, Warrington and Wigan Jobcentres on the claimant commitment remains positive with claimants saying they are aware that Universal Credit is paid monthly Already seeing people moving into work as you would expect with this claimant group Claimants making use of services provided by the Local Authorities High rate of access to the Universal Credit service via the Universal Credit website Universal Credit IT system working as expected and has been consistently available since go live Our Service Centres in Bolton and Glasgow have been dealing with: Claimant enquiries New claim action Change of circumstances Continuing to manage Universal Credit claims through our Operations Control Centre allowing us to improve practical details of the process

23 Local Support Services Framework - background Accessing UC is intended to be straightforward, however, some people may need extra help. The LSSF has been developed to meet those additional needs The LSSF seeks to create “a single claimant journey” at the local level from welfare dependency towards greater independence and, whenever appropriate, work. Based on extensive research into claimant needs and services required to meet those needs, including day visits to over 120 LAs and extensive engagement with the Housing and Voluntary sectors. Written by a task force which includes LA Association reps from England, Scotland and Wales, and co-signed by Sir Merrick Cockell Published on the 11 th February on DWPs website

24 Local Support Services Framework - update LSS Task Force (includes LA Reps) supported by Finance and Implementation sub- groups and several reference groups LA-led Pilots aligning more closely with LSS to test specific elements Learning being captured e.g. from Direct Payments Demonstration Projects and UC Pathfinders DWP District Managers and LAs have been asked to identify appropriate planning forums that are already in place, review membership and ensure both DWP and LA representation and ensure that these forums can fulfil the requirements of the LSS delivery groups. Some LAs have already begun mapping services, examining both provisions and gaps LAs and DWP Districts have begun building relationships with VCS organisations and other potential delivery partners

25 Local Support Services Framework - Mark 2 We are working on an update that will include: –conclusions from further joint work with local government colleagues, for example on the financial model –lessons learned from the pilots and pathfinders –our strategy for the further testing and trialling that we plan to undertake. Our aim is then to produce a fully updated LSSF document in autumn 2014 that will provide definitive baselines to allow local authorities to plan their services for the 2015 to 2016 financial year. We will also continue to pursue –Closer working between DWP and LAs locally –Mapping and gap analysis of services available to support UC claimants.