1. Universal Credit The Shape of Things to Come Angela Toal Welfare rights worker CPAG in Scotland

2. The Case for Change Poor work incentives – Benefits mean going back to work doesnt pay Complex system – For claimants – To administer

3. What is Universal Credit A single means-tested benefit For working age people Paid in work or out of work Withdrawn at constant rate as earnings rise Support for adults and children Support for rent and mortgages

4. Who Can Claim Depends on Your age Your residence in GB Your means Accepting a claimant commitment Lone parents Sick or disabled people Carers Out of work Low waged

5. UNIVERSAL CREDIT INCOME SUPPORT INCOME-BASED JSA INCOME-RELATED ESA CTC/WTC SF BUDGETING LOANS COMMUNITY CARE GRANTS CRISIS LOANS HB/CTB

6. How Much Is It Standard allowance Single claimant or couple (joint claimants) Additional amounts For a child For a disabled child For limited capability for work Higher disability addition For caring for a disabled person For rent or mortgage

7. Going Back To Work Earnings disregard Single taper rate Net earnings Universal credit Adapted from 21 st Century Welfare, DWP, July 2010 Basic allowance out of work or low waged replaces IS, JSA, ESA, WTC Additional amounts eg, mortgage, rent, children, disability, caring

8. Earnings disregard example - disabled person Her earnings disregard is £7,000. She has housing costs in her universal credit of £70 a week which means an annual amount of £3,640. £3,640 x 1.5 is £5,460. Her earnings disregard of £7,000 is reduced by this amount. However her disregard floor is £2,080, and her disregard will not reduce below this. £40 pw of her earnings will be disregarded. After that her UC will be tapered away at 65%.

9. Claimant Commitment Four groups No work-related requirements Work-focused interview only Work preparation All work-related requirements

10. How is it Administered Online claims and reporting Real-time earnings information from HMRC Assessment and award made automatically DWP administered Payments possibly monthly All overpayments recoverable

11. Will It Reduce Child Poverty Governments child poverty strategy gives no figures In debate, said increased take up and entitlement changes would mean child poverty would fall by 350,000 Others say set to rise because of cuts

12. Whats the Verdict

13. More Information CPAG advice and resources: website www.cpag.org.uk COMING SOONCOMING SOON Universal credit guide Welfare Rights Bulletin training advice line www.dwp.gov.uk/policy/welfare-reform