1. Universal Credit in Dorset – Let’s talk!
The Citizens Advice Perspective
8 June 2018
Caroline Buxton: Citizens Advice in Dorset

2. What we can offer, where an dhow to contact us
Up to date user-friendly information

3. What else is happening locally What else can we be doing?
Overview
What we will cover:
Universal Credit: what issues we are seeing for people making and managing a claim
How Citizens Advice is working locally and nationally to support the roll-out of UC
What else is happening locally
What else can we be doing?

4. Why the UC ‘world’ is different
Universal Credit replaces the 6 ‘means-tested’ benefits below, with 1 monthly payment, except for people with 3 or more children (they can claim - or stay on - Tax Credits). People on ‘legacy benefits’ will be migrated to UC from 2019 (tbc).
Income-based Jobseekers Allowance (JSA)
Income-related Employment & Support Allowance (ESA)
Housing Benefit
Income Support
Child Tax Credit
Working Tax Credit
Council Tax Reduction is still claimed from the local authority.

5. Main differences – can be tricky!
Most other benefits
Universal Credit
When do you receive payments?
Fortnightly
Monthly
How do you make your claim?
Most claims could be done on a paper form, over the phone or on-line
Done on-line
How do you manage your claim?
Could use phone or write a letter
Who is it paid to?
Normally paid to individuals
Paid to the ‘household’ – couples get a single payment
Who receives ‘housing benefit’
Often paid directly to the Landlord
Now included in UC payment so you have to pay your Landlord

6. What we are seeing at Citizens Advice: Headline statistics across B/D/P (1)
Oct 2017 – March 2018: 1,108* clients with 2,110 issues [*204 of these helped through our Income Maximisation projects] Top 2 issues: Initial UC claim, UC housing element

7. 49% had an issue with another benefit / tax credits
What we are seeing at Citizens Advice: Headline statistics across B/D/P (2)
Clients coming to Citizens Advice about UC almost always have other - often inter-related - problems, so these are complex case. Of those 1,018 clients who had a UC issue:
49% had an issue with another benefit / tax credits
17% asked for advice on debt
13% had a housing issues
49% had a long term health problem or disability
Our Snapshot report on the period to March 2018 is available; it includes case studies and recommendations. A more detailed report will come out later this year.

8. What we are seeing at Citizens Advice (3)
Coping with the digital processes can be problematic – even for some young people (!) and there can be very specific problems (eg epilepsy prevents someone using a screen).
You have to have a postal address to claim.
On-line verification can be difficult and people may have to wait to do this at their first JCP appointment.
But there can be a significant wait for the first JCP appoint-ment – a problem if people need an Advance Payment.
Some people are being given incorrect information from the DWP as to whether or not they can claim contribution-based Jobseeker’s Allowance [JSA] or Employment & Support Allowance [ESA]. These have to be paper claims.

9. What we are seeing at Citizens Advice (4)
Claimants are being asked for evidence that they don’t have eg. relating to housing costs, responsibility for a child.
People living in specialised ‘supported’ accommodation (and temporary accommodation) still claim Housing Benefit; there can be confusion about the definitions.
Managed payments to landlords are 4 weekly so may not tie in with rent periods.
People paid 4 weekly can have problems if 2 wage payments fall into an assessment period.
HMRC is not always getting the real-time income details on to the system in time for the assessment to be made.
People still have to claim CTR from their Local Authority.

10. What we are seeing at Citizens Advice (5)
Childcare costs are paid in arrears once proof submitted (has to be notified at the end of each assessment period).
For third parties ‘implicit consent’ has gone; claimants have to give consent (by putting it on their Journal) each time they want an adviser to help.
Understanding / meeting the claimant commitment can be tricky; some requirements can mean high travel costs to JCP.
Complex areas: Sanctions, mandatory reconsiderations, appeals and making complaints.
Complex area: ‘right to reside’ for EEA nationals.
Some people are worse off on UC, eg. no ‘severe disability premium’ and Benefit Cap issues.

11. Financial capability: potential problems areas
Having a bank account
Managing finances:
Understanding how UC payments are made up
Coping with deductions from UC for eg. fuel debts, water charges, C/Tax arrears, fines and advance UC payments: the maximum deducted can be a higher % than on other benefits
Making payments for rent themselves
Managing on one monthly payment – budgeting and prioritising; paying for essentials like gas & electricity
Waiting period: at least 1 month 7 days before any payment
Payments made to only one member of the household
Accessing emergency funds

12. Self-employment
People can only apply for Universal Credit as self-employed if all the following apply:
self-employment is their main job
they get regular work from self employment
they can show the work is organised, eg they have invoices and receipts, or accounts
they expect to make a profit
The Universal Credit payments will be based on the assumption that people are earning a certain amount even if they don't actually earn this much. This assumed amount is called the ‘minimum income floor’. (Except in the first year of being self-employed when UC is based on what is actually earned).

13. Support needs
1. Digital support needs should be identified
2. Claimants should be offered an Advance Payment if they will find it difficult to manage for 1 month 7 days without any income. This is a loan, taken back from UC over the next few months.
3. Claimants can also ask for an Alternative Payment Arrangement if they will struggle to manage payments. This could be:
paying some UC direct to the landlord
paying UC more often
splitting UC between partners
4. Claimants identified as not confident managing their finances should be be referred for Personal Budgeting Support.

15. National Citizens Advice – and other – evidence so far
Three key issues are causing hardship:
People are facing delays for first payment
UC is too complicated
People aren’t getting help when the system fails them
Two big problems areas – evidence shows that people are:
More likely to have priority debts than those on legacy benefits
More likely to be struggling with rent and council tax payments
APRIL 2018: New Citizens Advice reports on UC and the ‘modern labour market’: does UC work for those people with much less traditional work patterns?

16. Citizens Advice and other reports
SEE:
CitA: Delivering on Universal Credit July 2017
CitA: Universal Credit and Debt September 17
CitA: Universal credit and Modern Employment April 2017
Work Incentives
Non-traditional work
THE TRESSELL TRUST: Left behind – is Universal Credit truly universal?
GINGERBREAD : Where next on Universal Credit?

17. Some changes have been made:
Removal of 7 ‘waiting days’
Informing claimants about Advance Payments
FREE telephone helpline
Housing Benefit runs on for 2 weeks.
BUT some things CitA and others proposed have not happened:
Pause roll-out whilst they fix the problems
Those who need it get a payment within 2 weeks that does not need to be paid back
Ensure Alternative Payment Arrangements are offered to all including those with rent arrears, not just the ‘vulnerable’
Make budgeting support a central aspect

18. What Citizens Advice is doing locally
Income Maximisation posts: funded by SVPP and Westwey - 3 fte posts (6 p/t advisers). UC Support Adviser at B&P CitA.
PBS: Personal Budgeting Support: adviser based at CitA Poole
CitA ‘Intelligence Hub’ across wider areas
Joint CitA Research & Campaigns work across B/D/P: Snapshort Report
Getting evidence from the wider advice sector through the Advice Dorset Partnership
Training courses (in house, external, and through Advice Dorset P/ship)
Events such as today and 6 monthly Welfare Benefits Forum

19. What else is happening locally
Digital Champions – part of DCC’s Routes to Inclusion project: DCs are volunteers working in Libraries , some now specifically trained to support people to manage their UC claims/journals
Jobcentres’ complex needs plan – engaging with a range of agencies
Advice Partnership theme: employability and Universal Credit
Other support: foodbanks, ELA, Credit Union
Building Better Opportunities programmes to help people gain the skills they need and become ‘work ready’. In Dorset:
Face Forward (age )
UCAN (over 25s) provided by WISE Ability

20. So, what are Citizens Advice doing now?
Continue to collect and analyse our evidence.
Work with our colleagues at DWP and the local authorities to make UC work locally.
Support the wider advice sector to ensure frontline staff understand how UC works and what help is available
Develop ‘escalation routes’ with our local Jobcentres.
Secure continuation funding for our various UC projects.
Train and update our advice teams.
Through CAiD: keep the wider advice sector updated through e-bulletins, forums and training courses.