Universal Credit – Cambridgeshire Benefit Forum Dave Winterton

Universal Credit – What it means for claimants

3 Universal Credit - What it means for claimants Universal Credit simplifies the benefits system. –Will replace the six main working age benefits with one payment –It removes the requirement to provide similar information to different organisations. (HMRC, LA’s and DWP) Universal Credit is more flexible. –Combines in and out of work benefits making it less risky for claimants to start and progress in work. –No 16 hour rule and no limits on the number of hours someone can work. –Pay is taken into account in real time via the HMRC PAYE interface. –Claimants will not have to re-apply for Universal Credit if their circumstances change. –When someone moves off Universal Credit they can resume their claim easily should circumstances change within 6 months. Universal Credit Income based Jobseekers Allowance Income based Employment and Support Allowance Working Tax Credits Child Tax Credit Income Support Housing Benefit

4 Universal Credit - What it means for claimants Universal Credit – makes work pay. –Claimants will always be better off when they start work or increase their hours –Payment only reduces gradually as their take home pay increases so claimants won’t lose all their benefits at once if they are on a low income. Universal Credit – replicates the world of work. –Housing costs paid direct to the tenant –Single payment to household –Paid monthly

Universal Credit – one year on

Universal Credit claimant journey I get information or advice about how to claim Universal Credit. I receive a telephone call inviting me to attend an interview in the jobcentre. I attend my interview at the jobcentre, taking along any paperwork that has been asked for. I sign my Claimant Commitment, which records the activities I’ve agreed to do in return for receiving Universal Credit. I receive my Universal Credit decision letter. It tells me when I will receive my payments, and confirms what I need to do in return for getting Universal Credit. I telephone the helpline if there is a change in my circumstances, including if I start work. My Claimant Commitment is reviewed and may be changed to take into account my new situation. I make my claim online at GOV.UK. If I need help, I can telephone the Universal Credit helpline for assistance. I receive a text message to remind me about my interview at the jobcentre. I begin looking for work. I can get advice on jobseeking, budgeting and going online from my work coach. I regularly visit the jobcentre where my work coach and I discuss the actions we’ve agreed in my Work Plan. If a change in my circumstances means my Universal Credit payments change, I receive a letter confirming the new details.

7 Universal Credit deliberately fosters independence and personal responsibility. It does this through a series of important changes to the way claimants are required to interact with the service. Universal Credit will encourage a new type of relationship with claimants. Work Coaches will help claimants to become more independent by supporting them in their worksearch activities. They will help claimants plan and focus their jobsearch as well as set them actions that give them the best chance of finding work Universal Credit aims to support jobseekers through the Claimant Commitment to raise their expectations of what they can achieve, and to encourage responsibility. Those who are fit and ready for work will be expected to look for a job on a full time basis dependent on circumstances To help claimants meet the terms of their Claimant Commitment a Universal Credit Work Coach will give them extra help with their jobsearch including: –Universal Jobmatch, Youth Contract, Work Programme, National Careers, Service Apprenticeships, Access to Work, Government funded skills training, New Enterprise Allowance, Work Choice UC and Jobcentre Plus

Universal Credit – National Expansion

9 Universal Credit roll-out Jobcentres in the North West began taking claims from single non- householders on 23 June Claims from couples began on 30 June 2014 and families from 24 November Universal Credit is now rolling out to single non-householders across the country from February 2015 The last new claims to legacy benefits will be accepted during Following this the people on the remaining legacy claims will progressively decline, and the Department will migrate the remaining claims to Universal Credit. The current business case assumes for planning purposes the bulk of this activity will be complete by 2019.

10 UC Roll-out to East Anglia Jobcentre Plus Tranche 1 – February to April 2015 Beccles (Waveney LA) Lowestoft (Waveney LA) Felixstowe(Suffolk Coastal LA) Woodbridge(Suffolk Coastal LA) Leiston(Suffolk Coastal LA) Bury St Edmunds(St Edmundsbury LA) Haverhill(St Edmundsbury LA) Mildenhall(Forest Heath LA) Newmarket(Forest Heath LA) Thetford(Brecklands LA) Dereham(Brecklands LA) Tranche 2 – May to July 2015 No East Anglia sites

11 UC Roll-out to East Anglia Jobcentre Plus Tranche 3 – September to November 2015 Ipswich (Ipswich Borough Council LA) Stowmarket (Mid Suffolk DC LA) Cromer(North Norfolk DC LA) Fakenham(North Norfolk DC LA) North Walsham(North Norfolk DC LA) Diss(South Norfolk DC LA) Tranche 4 – December to February 2016 Cambridge (Cambs C C, East Cambs DC & South Cambs DC LA) Ely(Cambs C C, East Cambs DC & South Cambs DC LA) Huntingdon(Huntingdon DC LA) Wisbech(Fenland DC LA) Peterborough(Peterborough CC LA)

12 Eligibility For national roll-out of UC, new claims will be accepted from single unemployed claimants who would normally have claimed JSA. These claimants can have housing costs but only if they live in rented accommodation. However, there is a principle that once a claimant is entitled to UC they will not claim the legacy benefits (that UC will eventually replace) as circumstances change. For example, this applies to changes where a single claimant forms a partnership to become a couple and where the new partner has a child.

Universal Credit – What it means for local partners, LAs and Social Landlords

14 UC Resources for partners, LAs and Social Landlords GOV.UK Claimant Leaflet Partner Toolkit Infographics Videos Employer video “Universal Credit in the hospitality industry” Judi Leavor, Center Parcs

15 Your role Partner Claimant DWP INFORMATION ABOUT UNIVERSAL CREDIT GOV.UK Claimant Leaflet Videos Partner Toolkit Infographics

16 How you can support your customers now Claimant You can support your customers now by helping them to prepare for the world of work, and Universal Credit, through: Getting a bank account (or similar) Why? UC is paid directly into an account each month. Most employers pay this way too. Ensuring they can set up automated bill payments Why? Rent is included in their monthly payment – claimants will need to pay their landlord. They can also benefit from paying other bills this way. Monthly budgeting skills Why? Because Universal Credit is paid monthly, claimants may need to make changes to the way they budget, especially when they move from the old to the new system. Access to the internet Why? UC claimants will claim and eventually manage their own account online. Internet skills are necessary to an effective jobsearch.

Supporting Social Landlords Social Landlord Support Pack on gov.uk useful information for social landlords undertaking preparation for direct payment of housing costs under Universal Credit. Including: -Information and links to useful documents -Partner organisation information -Universal Credit information to help your tenants prepare The pack will be updated as new information becomes available Dedicated address for landlords wanting to find out more about preparation

Supporting Social Landlords MAS Landlord Portal Universal Credit information for Landlords Changes to Housing Benefit how to help your tenants manage their own rent payments What to do if your tenant is in arrears

Working with Landlords Our partnership teams have been visiting landlords. Talking to them about: Getting ready for Universal Credit –Getting to know their tenants –Identify tenants who may need support to prepare for Universal Credit –Provide or referring to appropriate support –Putting those who are ready onto a direct payment of Housing Benefit early Preparing their organisation –Identifying and managing organisational impacts –Preparing to take payments –Preparing their people for the changes –Finding out about local support services

The Trusted Partner trial seeks to test the proposal whereby social landlords make a recommendation to DWP that an alternative payment arrangement is appropriate for one of their tenants. The recommendation will trigger an APA with immediate effect and will not be challenged by DWP. Social landlords will be able to opt-in to be a trusted partner.. –The majority of alternative payment arrangements will be temporary and claimants will be supported so that they are able to manage the standard UC payment in the future. We met with Lord Freud on the 22 nd Sept and gained approval to proceed with a trial. Working with Landlords

What do you have in place already?

Personal Budgeting Support

REQUIREMENT FOR A PERSONAL BUDGETING STRATEGY IS DRIVEN BY THESE CHANGES Personal Budgeting Support - Context Housing costs direct to tenant Single payment to household Monthly Payment We want to help people to be able to manage their own finances successfully, whether they are in or out of work

Alternative Payment Arrangements Financial products Money advice Claimants managing their money Personal Budgeting Support - Overview

Personal Budgeting Support Personal Budgeting Support (PBS) is about helping claimants adapt to 3 key changes: –a single household payment –being paid monthly and –rent paid directly to the claimant instead of to the Landlord There are 2 elements to Personal Budgeting Support: –Money Advice –Alternative Payment Arrangements (APA) There is also a personal planner available online to help claimants identify any changes they may need to make in order to manage their Universal Credit claim available herehere

What is Money Advice? How Money Advice affects the claimants: –It is offered to all claimants when they claim or migrate to UC, to help them with the 3 changes –It will be based on need –Some claimants won’t need any Money Advice –Some claimants may be able to help themselves (e.g. online budgeting tools) –Some claimants will be referred to the LA who will arrange Money Advice locally for them. –Some claimants will also be considered for an Alternative Payment Arrangement (APA). To make a referral to the Local Authority for Money Advice, the Work Coach will: Contact the Local Authority to make an appointment with the claimant present. inform the claimant what to do next. Record it on the claimant commitment.

What are Alternative Payment Arrangements? Alternative Payment Arrangements (APA) will be available to help claimants who need additional support: –paying the UC housing cost element (rent) as a managed payment to landlords –making more frequent than monthly payments –splitting payment of an award between partners Alternative Payment Arrangements are also known as Payment Exceptions The APA process will be done in agreement with the claimant rather than ‘done to’ the claimant. All claimants who have been considered for an Alternative Payment Arrangement (APA) will be referred to the Local Authority for Money Advice.

Money Advice and APA Process All claimants will be asked ‘Personal Budgeting Support’ (PBS) initial filter questions when the claimant attends their new claim interview or at any other appropriate point during their claim. Claimants who need Money Advice but can help themselves will be given a Money Advice Service (MAS) leaflet with a telephone number and website address and encouraged to contact them Claimants who need more intense Money Advice will be asked further PBS questions by their Work Coach The PBS questions will identify if the claimant needs an Alternative Payment Arrangement (APA) and whether to refer them to the Local Authority for Money Advice. Some claimants will get APA and Money Advice. Some claimants will just get Money Advice.

29 Alternative Payment Arrangements – Consideration Factors 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 Tier Two factors - Less likely / possible 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

Managed Payment of the Housing Element to Landlords

Most Universal Credit claimants will receive the single monthly payment, taking responsibility for paying their own household bills, including their rent, on time. Some claimants will need extra support and so alternative payment arrangements including a managed payment of the UC housing element to the landlord can be considered in some cases to help protect tenancies. Managed payments will be considered on a case-by-case basis and can be requested by landlords as well as claimants. They can be considered on request from the start of the claim or during the claim if the claimant has accumulated rent arrears which will put their tenancy at risk. We do expect landlords to continue to follow their usual rent collection practices and procedures, making every effort to manage rent payments and recovery of any rent arrears. However, if the claimant is unable or unwilling to resolve payment issues with their landlord UC can then intervene. What are the key elements to consider When a claimant has accumulated one month's rent arrears due to persistent underpayment, we will make an early intervention, reviewing the financial support they need and making managed payments to their landlord if appropriate. If a claimant has accrued two month's rent arrears, we will pay the UC housing element direct to the landlord and if requested take steps to recover the rent arrears through deductions from their remaining UC payment.

How to Request a Managed Payment Landlords can use the form available on GOV.UK – Universal Credit: Rent arrears form to apply for a managed payment of the housing element and recovery of arrears.Universal Credit: Rent arrears form Once UC receives this information they will decide whether or not a managed payment is appropriate and inform both the landlord and claimant. The claimant will also be offered personal budgeting support.

Following feedback from National Housing Federation meetings and to support continuous improvements within UC, the Service Centre has created an electronic Single Point of Contact for Landlords to use. This is for Landlords to use to escalate issues that they have with APAs and Rent arrears payments but must not be used for new APA requests. The inbox will form part of the Service Centres daily activities and will be given priority. If there is a threat of eviction we ask that the subject field is noted accordingly 'Potential Eviction'. These enquiries will be cleared within 24 hours. All other enquiries will be cleared within 5 days. If a response has not been received within the above timescales, then there is a direct number that can be used to contact the service centre to escalate: Please note this number is not to be used for general enquiries – the normal Service Centre number should be used for general enquiries. Single Point of Contact for Landlords

The full guidance can be viewed on GOV.UK Universal Credit and Rented HousingUniversal Credit and Rented Housing Guidance

Questions?

Useful links for stakeholders Social Landlord Support Pack -social-landlord-support-pack.pdf -social-landlord-support-pack.pdf An introduction to Universal Credit video Universal Credit pages on GOV.UK A toolkit for Partners A Personal Planner to help claimants prepare for Universal Credit A pictorial representation explaining Better off in Work w-uc-tops-up-earnings-to-make-work-pay.pdf w-uc-tops-up-earnings-to-make-work-pay.pdf Budgeting help and support The Local Support Services Framework -local-service-support-framework.pdf -local-service-support-framework.pdf The Money Advice Service A Money Advice Service Universal Credit video