David Sobczak Periodicity & Pay Week-Ending Day Changes Overview 6 June 2008

Benefit Simplification is Complex  Organised Complexity  Over 50 years  Clerical processes automated!  Linked to Legislation  Costly to operate  Costly to change  Customer service  Change will affect customers but…..  Change and cutting ‘red tape’ is essential

Change Is Essential – The Foundation Stone  Improved Customer Service  Ease of transition for customers between benefits  Easier to understand as common rules across benefits/allowances  Reduces any confusion caused by existing rules for pay week ending days and pay periods  Supports benefit simplification for the Department  Easier administration  Reduced errors  Reduce overpayments  Foundation Stone for single working age benefit Periodicity & Pay Week-Ending Changes

Three Key Stages of Change  Aligning Jobcentre Plus working age benefits so they are paid in arrears;  Paying benefits at least two weekly in arrears;  Aligning methods of allocating paydays so that customers are paid their benefits on the same day based on the last two digits of their National Insurance Number as follows: = Monday = Tuesday = Wednesday = Thursday = Friday

Customer Conversion Issues  Two year conversion period  Up to 4 million people – some hardly affected at all  The Project does not underestimate the impact on customers during the conversion period  Implementation approaches being considered – segmented for each customer group  Advance to arrears attracts a one off non-recoverable payment  Weekly to fortnightly – 75% recoverable payment to be offered  Mainly Income Support & Incapacity Benefit customers  Consultation period with customer representative and special interest groups until end of June

Miscellaneous Issues  Regulation Changes  Social Security Advisory Committee  IT changes are complex and challenging  Business change and culture change – fortnightly payments  Weekly payments  Industrial Injuries & Disablement Benefit  Communications  Internal  External – customers and stakeholders  System notification limitations  Leaflets and forms  Website  Pack/information for ‘advisers’  Jobseeker’s Allowance Pilot - Norfolk  July to November 2008  Differing signing day and pay week-ending day  Internal governance and approvals – ongoing

A journey of a thousand miles begins with a single step… Contact Details:  David Sobczak  Tel  Mobile  Quotation from “The Way of Lao-tzu” Chinese philosopher (604 BC BC)