1. Universal Credit Overview 29 th June 2016 Melanie Black Welfare Rights Adviser, London Borough of Camden & Member of Welfare Committee at London Irish Centre

2. What is Universal Credit Essentially, Universal Credit (UC) is a new means tested benefit for people of working age on a low income who are in or out of work and who come under the UC system It does not depend on your national insurance contributions and is not taxable UC is administered and paid by the DWP UC replaces certain existing benefits UC is being introduced gradually for certain claimants in certain areas of the country (as of March 2016 there were just over 225,000 people nationally in receipt of Full UC )

3. What does Universal Credit Replace? Income Support Jobseeker’s Allowance (income based) Employment and Support Allowance (income related) Housing Benefit Child Tax Credit Working Tax Credit ( Social Fund Budgeting Loans will become Universal Credit Budgeting Advances)

4. Universal Credit does not replace: Bereavement Benefits Jobseekers Allowance (Contribution Based) Employment and Support Allowance Contribution Based) Disability Living Allowance/Personal Independence Payment Carers Allowance Child Benefit Council Tax Support Maternity Allowance and Statutory Maternity Pay Statutory Sick Pay Pension Credit (though in the case of couples if one is under pension age then UC must be claimed rather than PC)

5. Who can claim Universal Credit Single claimants/couples Couples with/without children Lone parents Sick and Disabled People Carers Home owners and ‘renters’ Jobseekers Employed workers (regardless of hours worked) Self-employed workers (regardless of hours worked)

6. Qualifying Conditions Claimant/partner must: Be at least 18 (some exceptions for 16-17 year olds) Be under qualifying age for Pension Credit (claimant or partner) Be present in Great Britain and habitually resident (which includes having the right to reside) Not be subject to immigration control Not be in education (barring some limited exceptions) Accept a claimant commitment Not have savings in excess of £16000

7. How to claim Universal Credit In the majority of cases claims must be made online at www.gov.uk/apply-universal-credit (this is likely to pose huge problems for digitally excluded claimants)www.gov.uk/apply-universal-credit Phone number (to be used in exceptional circumstances) is 03456000723 (Calls cost 9p per minute from a landline and 8p-40p a minute from a mobile) ie NOT FREE

8. Claimant Commitment The claimant commitments sets out responsibilities the claimant has to accept in return for receiving UC (depending on personal circumstances) UC claimants (single or both if a couple) must accept the claimant commitment An unemployed person (barring certain exceptions) is expected to spend the equivalent of a working week (35 hours) seeking employment (and prove it)

9. Potential Pitfalls UC is paid monthly – preferably into a transactional bank account – so financial exclusion and budgeting difficulties may arise UC is made up of a single monthly payment for rent and living expenses – do claimants realise this? UC is intended to be claimed online so access to IT and literacy and numeracy difficulties may make life very difficult for certain claimants Financial Hardship during 7 day waiting period before UC entitlement commences Is correct advice being given in gateway areas before Full/Digital service arrives?

10. Digital Exclusion In theory Jobcentre staff should help claimants find support if they cannot manage a claim online (possibly by referring to advice/support agencies or internet access point) – is this happening? Are advice services ready/equipped to help? We know that many claimants we encounter do not have smart phones, computers, land lines or broadband etc Once claims have been made online contact from DWP will predominantly be by phone face to face so it will be vital for claimants have working phones/credit etc The intention is that most interactions will eventually move online Note – online claim forms must be completed in one sitting. The form cannot be saved and gone back to. Advisers need to factor this in when scheduling appointments as the process can be time very consuming (and frustrating)

11. Financial Exclusion Claimants will need a transactional bank account but there are barriers to some people on low incomes opening accounts (including charges and poor credit rating etc) Many claimants currently use Post Office Card Accounts to receive benefits so may need help switching to basic/current accounts so that direct debits can be set up UC is usually paid monthly in arrears (this is a big change for those who budget on a weekly basis). The reason for monthly payments is to prepare people for the ‘world of work.’ Those who have not previously paid their rent themselves may need help with budgeting and working out their actual costs and liabilities

12. Question for advisers/support workers and organisations to ask/consider Will you find the waiting time very difficult? Will you need to borrow from friends/family/payday lenders? Have been told about/offered a Hardship Payment by the DWP? Have you been told about/offered Personal Budgeting Support? Are you receiving your monthly payment on the same day every month? Do you know that your rent needs to be paid out of your UC money? Are our staff up to date/trained to advise?

13. Advantages of UC Universal Credit will merge out-of-work benefits and in-work support The system will be simpler (short award letters etc.) and will respond more quickly to changes in earnings (unlike Working Tax Credit) There are no rules about the number of hours that should be worked (unlike Working Tax Credit) Changes in circumstances need only be reported once, to one department

14. So, where are we now? In May 2016, the DWP announced that UC had now started in every Jobcentre Plus office in Great Britain However, in most areas UC is currently only available to new single jobseekers (subject to gateway conditions) There are someFull Service areas nationwide where gateway conditions do not exist UC Full Service has full concentration on digital methods The current plan appears to be that from mid 2018, migration from existing legacy benefits will begin. This should be completed by 2021