Universal Credit: An introduction for homelessness services

Universal Credit: An introduction for homelessness services
Welcome to this webinar for staff working in homelessness services on Universal Credit. Although the Universal Credit full service is only available in around 80 Job Centre Plus at the moment, the roll-out is due to be accelerated in October, with it scheduled to be available in all Job Centres by October 2018 Let’s end homelessness together

Overview What is Universal Credit? Who can claim Universal Credit?
What are the potential problems for people who are homeless? What safeguards exist? What issues need to be resolved? We have therefore developed this webinar for members to equip people with a basic understanding of what Universal Credit is, including what Universal Credit aims to achieve, and how it practically does this (so how people can make a claim, how often it is paid etc Universal Credit is not available to everyone yet, so we will go through who can claim it and how this will change over time We’ll also cover some of the potential problems for people who are homeless that have been identified by Homeless Link members, our Communities of Practice, our Expert Advisory Panel, which is made up of people with lived experience of homelessness, and also Expert Link, a network of people with lived experience of multiple disadvantage. By understanding the potential problems members will hopefully be able to look to do some work to try and mitigate some of the impact. There are some specific safeguards built into Universal Credit, which we will cover so that people are aware of these and can then advise people on And we’ll finish with some information around some of the key issues that remain and which we will be working with other organisations to seek some practical solutions from the Department for Work and Pensions Let’s end homelessness together

What is Universal Credit?
A new model of administration and delivery of welfare benefits. Administered by the Department for Work and Pensions (DWP) One single payment So what is Universal Credit? In a nutshell, Universal Credit (UC) is a new model of administering and delivering welfare benefits. Administered by the DWP It takes a number of current benefits and putting them into one single benefit. Let’s end homelessness together

What does Universal Credit aim to achieve?
Simplify the benefit system Complex Expensive Susceptible to fraud Incentivise work (and in work progression) Poor work incentives Trapped in poverty Source(s): Impact Assessment for Universal Credit Universal Credit: welfare that works Universal Credit was introduced in 2013 as the Governments flagship welfare policy with two key aims The first was to simplify the benefit system The Government considered that the benefit system was complex, and that benefit administration was expensive. This complexity also considered to leave the system susceptible to fraud. So simplifying the system would make it easier to understand and administer. Also, could help claimants who had previously not been claiming benefits that they were entitled too. The second key aim was to Incentivise work (and in work progression) The Government considered that the welfare system offered poor work incentives to people and trapped individuals in poverty and a life of welfare dependency. By incentivising work , or ‘making work pay,’ the Government aimed to reduce the number of unemployed households and reduce poverty Let’s end homelessness together

How does Universal Credit simplify the benefit system?
One benefit So want to look at each of these two aims in more detail, to see how in practice Universal Credit seeks to achieve these. Firstly, how does Universal Credit simplify the system? Universal credit creates one single income-replacement benefit for working age adults. This unifies the system of means-tested out of work benefits, tax credits and support for housing. So both in work and out of work benefits. Let’s end homelessness together

Which benefits does it include?
ESA (LIMITED CAPABILITY FOR WORK ELEMENT) ESA (LIMITED CAPABILITY FOR WORK RELATED ACTIVITY ELEMENT) JSA OR INCOME SUPPORT (STANDARD ALLOWANCE) HOUSING BENEFIT (HOUSING COST ELEMENTS) WORKING TAX CREDITS CHILD CARE CREDITS Specifically, it unifies the following 6 benefit:

How does Universal Credit simplify the benefit system?
One benefit One administering organisation Once a month One benefit unit per family Claim online Paid into bank account As well as unifying into one benefit, it also reduced the numer of agencies administering, and so the number of agencies that claimants would have to interact with. Previously there were 3 organisations administering a range of in and out of work benefits: JCP – JSA,ESA LA – HB, CTB HMRC – Tax Credits Now one organisation DWP One set of rules. Previously, there had been different ways of calculating means testing; this now consolidated to one set of rules The benefit is paid Once a month So payment that previously would have been 2 weekly (like JSA) now monthly. Also rules around waiting days, previously applicable to JSA, now also applicable to housing costs With the waiting days, monthly payment in arrears, and then a further week wait, this results in an estimated wait for first payment of 6 weeks One benefit unit per family And further to simplify the administration side, and make delivery more automated, the primary way of claiming Universal Credit is online, and paid into a bank account. Let’s end homelessness together

How do you make a claim? Digital by default Making a claim, updating status, add notes on work search, careers advice etc – can alert an adviser Takes between 30 – 60 mins It tracks your working changes Resources: Universal Credit in Action online tutorial: Citizens Advice checklist: In terms of making a claim, this is digital by default, and that includes things like updating circumstances, contacting work coaches. When people make a claim it should take between mins As online, it intends to track changes to working patterns easier. Now we have highlighted a couple of resources here that may be helpful; there is an online tutorial about making a claim CA have developed a checklist of the information that peole need to have when making a claim, which may be helpful for people to go through in preperation for making a claim. There is a specific point it is helpful to raise here relating to housing: Let’s end homelessness together

When asked about housing, if a claimant is in supported exempt accommodation, it is important to press no to the question about paying rent . If people do not, this can lead to two parallel payments, one from DWP and one from Housing Benefit, and so an overpayment which will need to be recovered.

How does Universal Credit incentivise work?
Work allowances and taper rates Monthly payment like a salary Lump sum Housing costs Conditionality and sanctions Work-focused requirements where appropriate New sanction rules Now look at the ways in practice the way that UC incentivises work. UC introduced work allowances and taper rates. This allowed people to keep more of income as people move into work Previously, benefit was withdrawnn penny for penny as income rises (effectively 96/100% tax rate). This cliff edge presented a financial discincentive to enter work. Work allowances allowed people to earn a certain amouint of money before money was withdrawn, and then the taper rate meant that benefit was withdrawn at a slower rate. This was welcomed. Unfortunalty, the work allowance Was reduced April 16 Then abolished for non-disabled, childless A further way that UC incentivise work is the monthly payment, which replicates a monthly salary. This includes all benefits including housing costs. A third way is changes to Conditionality and sanctions regime. Now, in order to receive UC, claimants must sign a ‘Claimant Commitment’. This will set out what the claimant will be expected to do as a condition for receiving UC. This will include work-focused requirements where appropriate. Failure to comply with a ‘Claimant Commitment’ could result in a reduction in the amount of UC the claimant receives. There are different levels, with the highest sanction amount being 100 per cent of the ‘standard allowance’. Under Universal still subject if earning 35 hours National Minimum Wage Let’s end homelessness together

What is Universal Credit?: Key features
One monthly payment of entire benefit Paid to one bank account in the household Housing costs paid to tenant, not landlord No payment of first seven days for JSA type claimant 6 weeks before first payment Digital by default Paid into bank account New conditionality rules So as way of summary, the key features of Universal Credit are: Let’s end homelessness together

Who can claim Universal Credit?
Although some of the basics are simple, there are a lot of complications around who can claim, due to: 2 systems Legacy and new claimants Particular exemptions And people can move onto UC because of particular changes in circumstances So going to go through these aspects in a bit more detail. Let’s end homelessness together

Digital (full) service or live service
Gateway conditions (which vary) Most areas: single no children Some areas: couples and families with children Manage claim by phone Full service All new claims People on legacy benefits but change in circumstances Online account Exceptions People with 3 or more children Housing cost element for those in exempt accommodation Overview of full and live service: There are two services: Live services: Within live service there Gateway conditions (which vary) to claiming UC – inc. already on or entitled to other benefits [Unemployed (Group 4) With or without rent element of UC ] Most areas: single, childless jobseekers Some areas: couples and families with children (other conditions) Manage claim by phone In full service areas or digital areas, UC open to all new claims from all claimant types Or anyone who is currently on existing benefits who has a change of circumstance that would naturally trigger a new claim to Universal Credit This means that in areas that are full service there will be no new claims for JSA ESA HB (unless somebody is in Supported Housing) In full service areas you have an online Universal Credit account to manage your claim. There are some exceptions: If you have 3 or more children you won’t be able to make a new UC – unless on UC within the last 6 month period and making a re-claim. And importantly for some homelessness organisations, in a full UC area exempt accommodation will still receive housing benefit, meaning that new claimants will need to claim housing benefit for housing costs, but Universal Credit for other elements Let’s end homelessness together

Change in circumstances
Many changes will trigger a move to Universal Credit inc: On JSA and change employment status New tenancy for first time Move to area (from another LA) and take up tenancy For some changes can choose to remain on legacy benefits inc: Move into employment (but not enough hours to satisfy Working Tax Credit) Move to area (same LA) and take up tenancy AS noted If in UC full area, it is not just new claimants that move onto UC, but existing claimants if there is a changes in circumstances Many changes will trigger a move to Universal Credit, this includes, but not limited too… Can choose to remain on legacy benefits for: Move into employment (but not enough hours to satisfy Working Tax Credit) [16] On Working Tax Credit and increase hours On Working Tax Credit only and become responsible for first child Move to area (same LA) and take up tenancy [Must remain on legacy benefits for: On Child Tax Credits only and start work to satisfy Working Tax Credit rules – remain on Child Tax Credit and claim Working Tax Credit] Let’s end homelessness together

When is full service coming to my area?
All areas are expected to have the full service for all new claims October 2018 Then migration of existent claimants Completely rolled-out with full migration of existing claimants by 2021 Current timetable: Map of Universal Credit coverage: All areas are expected to have the full service for all new claims by October 2018 This will then be followed by the migration of existent claimants (we do not have a timetable for this) It has been suggested previously that people in supported housing projects will be amongst the last to be migrated over Universal Credit is due to have completely rolled-out with full migration of existing claimants by 2021 Current timetable: Let’s end homelessness together

Let’s end homelessness together

But remember: Lobster pot principle
Once a person has claimed Universal Credit they cannot go back to JSA or ESA. They can only go back to Housing Benefit if they move into supported housing This means you may find you have some people on UC and some people still on JSA or ESA in your client group at the same time A final thing to consider is that once a person has claimed Universal Credit they cannot go back to JSA or ESA. Even if their circumstances change (for example they move to an area where UC has not yet arrived) They can only go back to Housing Benefit if they move into supported housing This means you may find you have some people on UC and some people still on JSA or ESA in your client group at the same time Let’s end homelessness together

What are the potential problems for people who are homeless?
If now look at some of the potential problems, and issues to bare in mind, for people who are homeless? Returning to the aims of the policy, which were Simplifying the system And incentivising work Let’s end homelessness together

Simplifying the system?
One benefit Does not include Council Tax One administering organisation Legacy benefits Once a month Delay for first payment Evictions, barrier to tenancies Exemptions not always working. Large lump sum / lack of support One benefit unit per family Financial abuse Claim online Lack of IT facilities and support Long passwords Communications, escalation, advocacy Paid into bank account Lack of ID, high debt Post Office Accounts phased out So although the system is meant to be easier to understand Actually really complicated – CAB research has evidenced this and are calling for this as a key reason for pausing further roll out In an area people can be on legacy, UC, moving between, large amount of exemptions built in One benefit but not council tax, [some agencies would argue that childcare should be separate, as an independent income]. One administering organisation [though for exempt accommodation claimants still claim HB, and working with legacy, so lots of confusion and miscommunication between agencies] Focus on once a month By being paid once a month, and having the 7 waiting days means, there is built in that no initial payment for 6 weeks (estimate). We have heard examples of a lot longer; people are destitute in this time Landlords are already in a position of having served notice prior to the first payment having been made because of the time it is taking for money to come through. Also landlords unwilling to provide tenancies to UC claimants Because 1 month, an exemption had to be made for Specified Accommodation rules where there is shorter stays, and so for exempt accommodation claimants requiring housing benefit. But there has been instances of money still paid through UC, leading to large scale overpayments Large sum, hard to manage, and a lack of money management support Particularly difficult for people with alcohol or substance issues. We are also hearing of examples of people being targetted, as it is known they will be receiving a large financial sum on a particular date. One benefit unit per family, can lead to financial abuse Claim online Lack of IT facilities Lack of IT support Long passwords – easy to forget, hard to get new one Questions are having to be put through as electronic queries Hard to advocate [Staff cannot submit evidence or ask questions - as they have done in the past with HB - the customer and Work Coach are the only parties able to do this.] Poor communications, people are subject to changes without their knowledge Bank accounts Hard to open if Lack of ID, high debt Post Office Accounts can be used but there is confuision amongst staff if these are being phased out, or can still be used in esceptiomnal circumstances. Let’s end homelessness together

Incentivising work? Work allowances and taper rates
Abolished for non-disabled, childless Monthly payment like a salary Difficult to manage for people with substance misuse issues People targeted Conditionality and sanctions Historically people who are homeless disproportionately sanctioned In terms of incentivising work, as mentioned work allowances have been abolished and so the cliif edge problem remains. Work allowances and taper rates Was reduced April 16, then abolished for non-disabled, childless If moving on to minimum wage or part time there is little incentive because of working credit reduction Has been a trial for whether encouraged people to move on within work - inconclusive We have mentioned issues around monthly payment, and also in terms of Conditionality and sanctions, Historically people who are homeless disproportionately sanctioned There is concern that harsher sancioning will be inappropriatly applied to some people who are homeless. Let’s end homelessness together

What safeguards exist? www.homeless.org.uk
There are some safeguards that it is important that members are aware of so that they can advise people that they are working with. Let’s end homelessness together

Safeguards Exemptions to 7 waiting days www.homeless.org.uk
There are some exemptions to the 7 day thing. Let’s end homelessness together

Waiting days exemptions
have been entitled to a jobseeker’s allowance or an employment and support allowance within the 3 months ending on the relevant date making a new claim because their relationship status has changed (e.g. two single people making a claim as a couple) terminally ill have recently been victims of domestic violence care leavers aged 16 or 17 and without parental support have been a prisoner within the month ending on the relevant date Source: Not a specific homeless one, but Exceptions cover those who are: making a new claim because their relationship status has changed (e.g. two single people making a claim as a couple) terminally ill have recently been victims of domestic violence care leavers aged 16 or 17 and without parental support have been a prisoner within the month ending on the relevant date; or have been entitled to a jobseeker’s allowance or an employment and support allowance within the 3 months ending on the relevant date. Not well known by Work Coaches, so may need to ask the DWP to review and revise the award or have tenant submit a "Mandatory Reconsideration" request. Let’s end homelessness together

Safeguards Can get a Short Term Benefit Advance Usually maximum of 50%
Exemptions to 7 waiting days Short Term Advance / Universal Credit Allowance Usually maximum of 50% Usually recovered within 6 months at up to 40% of UC standard allowance Can ask decision maker for longer “Easement” from job search requirements “Newly” homeless Basic actions re: accommodation Hardship payment Not automatic Usually paid back Alternative Payment Arrangements Can get a Short Term Benefit Advance Usually maximum of 50% Usually recovered within 6 months at up to 40% of UC standard allowance Can ask decision maker for longer “Easement” from job search requirements “Newly” homeless Basic actions re: accommodation Hardship payment if have been sanctioned and in financial need Not automatic Usually paid back Alternative Payment Arrangements Let’s end homelessness together

Alternative Payment Arrangements
Direct payment to landlords Fortnightly payments “Split” payments within a “benefit unit” (so all the money does not go to one person) Identified at outset DWP staff discretion on who and how long Source: Direct payment to landlords Fortnightly payments “Split” payments within a “benefit unit” (so all the money does not go to one person) Identified at outset Probably best to really go for this at beginning when personal budgeting support is decided (first meeting with Work Coach. Let them know through the Journal) Disclosure clearly a big barrier, as well as knowledge by DWP staff of APAs DWP staff discretion on who and how long Everyone is on a journey towards the single monthly payment model, but how long that journey takes will be based on individual need. The Universal Credit adviser will decide the review period taking into account the claimant’s particular circumstances Alternative payment arrangements will be subject to a review. DWP coaches have guidance on who should likely get an APA, and these are on the next slides… … Split payments There’s no formal process for requesting split payments. These arrangements would be put in place whenever we receive information, either from the claimant(s) or a third party, suggesting to us that split payments would be in the claimant’s and their family’s interests. In the instance of someone experiencing domestic violence the policy is that we would simply need to be made aware, and that split payments would be appropriate, either from the claimant(s) of a third party. There is no requirement for both claimants to consent – the decision is for the Secretary of State and we would not seek the consent or opinion of either claimant. STILL NOT A SOLUTION: - 85% think this would worsen abuse when partner found out Effectivly have to disclose, will put people at risk Would do it as process of starting to leave, of getting everything sorted. Makes that transition harder Let’s end homelessness together

Exceptions – Tier 1(highly likely/probable) 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 The split payment of an award between partners should only be considered in certain specific situations e.g. financial abuse, domestic violence Alternative payment arrangements can be considered at any point during the Universal Credit claim. They may be identified at the outset when the personal budgeting support is decided, or during the claim e.g. because the claimant is struggling with the standard monthly payment, or moves house which could affect the housing or split payment. PBS Guidance final – 7th February 2013 4 They can also be triggered by: business knowledge, the claimant, their representative, their caseworker, and/or their landlord as a result of the build up of rent arrears. To safeguard the claimant’s home, a landlord can notify Universal Credit asking for the housing cost element to be paid direct to them when a rent arrears 'trigger' has been reached. The Direct Payment Demonstration Project (DPDP) is testing different rent arrears trigger points that will inform the final trigger to be used in Universal Credit. When considering alternative payment arrangements, the Tier 1 and Tier 2 factors set out at Annex A should be used to help to decide if these arrangements are appropriate to an individual. All cases must be assessed on an individual basis and information will need to be gathered with sensitivity and in a non judgemental way. It will be important to gain confidence and build trust and rapport with individuals, listening to their needs, probing and questioning to identify the issues. Details from a third party i.e. the claimants’ representative, their caseworker and / or their landlord can be used to inform a decision. Let’s end homelessness together

Exceptions – Tier 2(less likely/possible) 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 Let’s end homelessness together

What issues need to be resolved?
These safeguards are welcome, but there still remains issues which we are looking for Government to address What issues need to be resolved? Let’s end homelessness together

What issues need to be resolved?
Bank accounts ID requirements Delays in first payment 7 day exemption Advance payment repayment Improve identification Alternative Payment Arrangements Default not discretion Opt out Improved communication between DWP and landlords Access to Support Consent and escalation routes The standard 6 week wait for a first payment is reduced for people identified as homeless or at risk of homelessness. Homelessness should be added to the list of exemptions from the initial 7 day waiting time once a claim is submitted, alongside other existing exempt vulnerable groups such as prison leavers and victims of domestic violence. Alongside this, all people identified as homeless should immediately qualify for, and be offered, an Advance Payment of Universal Credit which can be paid back over at least a 12 month period. Local authorities, homelessness hostels and key workers should be able to identify people who are homeless in the initial stages of making a claim in order to allow access to these measures. All individuals identified as homeless or living in supported housing should have Alternative Payment Arrangements (APAs) established as standard from the beginning of their claim. Homelessness has already been identified as a tier one vulnerability factor, meaning that APAs are highly likely to be needed by a claimant. However, many people still do not know APAs exist, or find them difficult to access. We therefore propose that all people identified as homeless, or living in supported housing such as a homelessness hostel, should be placed automatically onto an APA for both more frequent payments and direct payment to landlords (where they currently claim the housing element of Universal Credit.) This should operate on an opt-out system, whereby people are able to request their APAs are removed following a conversation with the DWP. Better communications systems should also be established between the DWP and landlords, so they are informed when their tenant is placed on and removed from APAs, and when they can expect payment. Access to support – Access to Universal Support has, to date, been extremely limited and there has been some suggestion that the scheme isn’t live at all. With much support seemingly being provided by local authorities, who often receive no additional funding, there is often very little support available to people who may struggle to make a claim. This is particularly true with regards to digital skills, which many people still lack but are crucial for making an online claim. Consent & escalation routes – Problems with access to support have been expedited by the removal of implicit consent for the DWP to discuss cases with third parties in full service areas. This means that support workers are not able to chase decisions unless they are directly accompanied by the claimant they are working on behalf of. The DWP has already shown they are aware of issues with this system by allowing MP’s offices to use implicit consent, but this has not been extended to other support services. Similarly, problems have been experienced when trying to escalate complex problems. In the live service areas, there are clear escalation routes for more complicated problems which allow issues to be resolved relatively quickly. In the full service areas those options are not available. Let’s end homelessness together

Please get in touch: chris.brill@homelesslink.org.uk / @ChrisBrillHL
So thank you. That brings us to the end of the webinar If you are a member of homelesslink please get in touch with me either by at or Would really like to hear if there are any additional issues that services are facing that we can look to develop solutions around Thank You. Let’s end homelessness together

Universal Credit: An introduction for homelessness services

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Universal Credit: An introduction for homelessness services

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