1. Universal Credit Full Service

2. Universal Credit – Continuing Welfare Reform
The Government is introducing the biggest welfare change for the last 60 years. It’s cornerstones include :
Rewarding work
Encouraging responsibility
Making work pay
Helping those who need it most
Supporting aspiration
Universal Credit follows on from :
~ Tailored Worksearch Support
~ Benefit Cap
~ Personal Independence Payment
This is a slide to put Universal Credit in context of the other welfare reforms and can be used to deliver key messages (see above).
Additional information:
Universal Credit is key part of a package of welfare reforms supporting a more dynamic and flexible labour market - removing barriers to work, freeing people to get back into and progress in work.
For people who can work but are currently out-of-work, we want a welfare system that encourages a return to work as quickly as possible.
For people already in work, we want a welfare system that encourages them to progress in the labour market, increase their earnings and become more financially independent.
For people who cannot work, we want a welfare system that provides the support they need
Provides a new single system of means-tested support for working-age people who are in or out of work. Support for housing costs, children and childcare costs are integrated in the new benefit. It also provides additions for disabled people and carers.
Universal Credit is the most significant change to the welfare state in many years:
At the heart of Universal Credit is a desire to see more people move closer to work, into work and earning more: reducing their dependency on benefits.
It will: increase labour market participation, reduce worklessness and increase in-work progression
Support people moving into work by aligning their experience of UC to the world of work
Modernise the delivery of welfare benefits by providing an easy to use simple service
Reduce fraud and error, improve administrative efficiency and provide value for money to the taxpayer
Provide an effective safety net that recognises the needs of claimants, reduces poverty and ensures fairness

3. Transforming Welfare UC UC From six benefits to one
JSA
Tax Credits
Housing
Income Support
Child Tax Credits
ESA UC
Deal with one organisation not three
DWP
HMRC
Local Authority UC
It’s always good to go back to first principles of why the programme was developed, how it works and how it is being rolled out across the country.
So why was UC developed? To address the problem of social injustice, generations trapped in cycle of benefits, costs too high to sustain and unfair to those taxpayers who might one day need benefits too.
Overview
Universal Credit replaces the outdated and complex benefits system of the past which too often stifled people’s potential
It is a flexible and personalised system which brings six different payments into one and supports people out of work and those in work but on a low income.
Universal Credit ensures people are better off when they move into work, unlike the old system where benefits were stopped when people got a job.
Claimants get a dedicated Work Coach, so there is a face and a name to help them manage the process and provide extra support.
Universal Credit is a digital, flexible and personalised system
It reduces barriers to work, incentivising people to move into work
It also helps people a low income to earn more and get on in their job

4. Universal Credit – What’s it about?

5. Universal Credit – is opening up work by…
Helping make sure you’re better off in work than on benefits
Allowing part-time and short-term work to act as a stepping stone into work
Enabling you to work more than 16 hours a week and still claim Universal Credit
Paying towards your childcare costs, giving you more flexible working hours
This is enabled by a taper
that reduces your
Universal Credit as you earn
more money instead of stopping
all your support outright when
you work a certain amount.
A key part of the UC reform is a different approach to earnings and Work Allowances and benefit withdrawal as earnings rise as a result of merging in and out of work benefits / tax credits. Under Universal Credit, there will be an earnings disregard which will reflect circumstances to a greater extent than now.
Universal Credit has a simple system of Work Allowances and a single Earnings Taper rate so that some earnings can disregarded and only a percentage of earnings affect the UC award.
Work allowances and the Earnings Taper.
The work allowance is the amount a household can earn before their Universal Credit award is affected. The amount of the work allowance may vary depending on the household circumstances. Once people earn more than their work allowance, their Universal Credit is subject to a taper rate of 65%, this means that for every pound earned over the Work Allowance, Universal Credit will be reduced by 65p. From April 2016, if a single claimant (or either claimant in a couple) does not have responsibility for a child or qualifying young person, or does not have limited capability for work, they will not be eligible for a work allowance. In any other case, one of two new work allowances will apply.
The levels of these work allowances will be set at £192 per month for those with housing costs in their UC award and £397 per month for those without housing costs.
For every pound earned over that amount, a single taper will be applied at 63%.
Universal Credit will continue until a claimant reaches their Conditionality Earnings Threshold.
If no restriction applies, the default position is that each claimant's CET is calculated at 35 hours a week multiplied by the hourly rate of the National Minimum Wage.

6. The Taper In Action
A single person, with a child getting help with housing costs.
They have a work allowance of £192.
During an assessment period (1 month) they earn £500 starting their new part time job.
The taper rate is 63%.
This means for every £1 earned over £192 – their UC payment reduces by 63p.
As earnings rise, the taper reduces Universal Credit more smoothly than previous benefits until the person is self sufficient.
The graphs are illustrative and not exact to scale – to try and demonstrate how the taper works.
It changed from 65% to 63% in April 2017.
With zero earnings the full entitlement to Universal Credit is paid.
Claimant can earn £192 before deductions.
Claimant earns £500 working part time. The first £192 is ignored, but the remaining £308 is subject to the taper rate.
£308 x 0.63 = £194.08p deduction from their Universal Credit payment, after earning £500.
The taper will reduce the Universal Credit payment until there’s nothing left. In this case, the claimant went into full time work.
Universal Credit payment
Earnings
Graphical illustration only – not exact

7. It’s a simplification of the benefit system
Previous benefit system
Universal Credit
Multiple benefits with multiple places to claim them
One benefit, one place to claim
Different benefits for in or out of work
One benefit that stays with you in and out of work
Different entitlement rules for different people
One benefit for everyone*
Complex rates for ESA
Simpler rates for limited capability (only two elements)
Different organisations (DWP, HMRC, Local Authorities)
All administered under DWP
Paper forms or clerical processes to claim
Can claim online
The Government keeps your information / data
Claimants own and can see all their information / data using an online account*
Changing details can be clerical or paper/phone based
Change circumstances online
Feels more individual
Is based on everyone in your household
Delivering services digitally
Preparing well ahead of the national roll out of Universal Credit, the Department has already made significant changes to the way it operates, embracing new digital channels – which will be rolled out November 2018 to every jobcentre.
Providing continuous support
Under the legacy system, the support offered to claimants was disrupted. They would often be seen by different advisers as a result of changes in their circumstances. The Department aims to support claimants with the same Work Coach throughout the duration of their Universal Credit claim, meaning claimants can build a relationship with their Work Coach. This also includes if they move off Universal Credit as their claim can be kept open for six months to ensure they receive continuity of support should they move back onto Universal Credit.
Maximising efficiency in customer service
In parallel with these changes in Jobcentres, Universal Credit also improves the support provided remotely to working age claimants. The Department has already reduced significantly the number of contacts which claimants make over the phone, in part by ensuring that far fewer callers have to be passed on from a Contact Centre to a Benefit Centre. This has enabled the Department to improve service and reduce costs.
*Full service only.
Once fully rolled out, 7 million people will be affected by Universal Credit.

8. The online service is constantly improving
The online service (full service) is updated every two weeks with new functionality.
This means more people can do more online and self serve where appropriate.
It also means we can interact remotely with those who only need basic support.
This means we will be able to focus our support on those people whom need it most.
As of 01/11/18 – 107 releases.

9. The 2017 Autumn Budget changes continue to define the benefit itself…
These announcements brought positive changes to Universal Credit (UC) service.
Claimants can now claim up to a 100% advance straight away and repay it over a 12 month period.
Claimants are be able to request an advance online.
Claimants no longer need to wait 7 waiting days to qualify for benefit.
There is a “Transition to UC housing payment” that gives a 2 week housing payment (non repayable).
It is easier for claimants to get a managed payment to landlords with more open Work Coach discussions.
Additional funding for in-work progression trials was set aside to help that demographic.
Every jobcentre will have the full (online account) service by the end of 2018.
UC temporary accommodation measures have been brought in to ease the process.
We are now working in partnership with Citizens Advice and Citizens Advice Scotland.
Extended the gateway for families with more than 2 children back to legacy benefits until Jan 2019.
Closed UC Live Service for new claims in Dec 2017.
We have delivered all of these.
- Last JCP goes live with full service 14/12/18.

10. … Whilst the 2018 Autumn Budget changes consolidate our direction of travel
A higher work allowance rate for those without housing costs (from £409 to £501) and those with (£198 to £285) from April 2019.
The maximum level of deductions from an award reduced from 40% to 30%.of the standard allowance from October 2019.
From July 2020 entitlement to Income Support, Employment and Support Allowance and Jobseekers Allowance will continue for 2 weeks after a UC claim has been made.
From July 2020, a 12 month exemption period from Universal Credit’s Minimum Income floor will apply to all gainfully self-employed claimants new to UC or new to self employment.
The New Enterprise Allowance (NEA) programme will be extended beyond its March 2019 expiration date, giving self-employed claimants more support to run their business.
Advances to be repayable over 16 months from October 2021.
A further year extension to the surplus earnings threshold of £1500 to 2020.
Those individuals who live alone with substantial care needs and receive the Severe Disability Premium will be prevented from naturally migrating to UC following a change of circumstances. This means these claimants will only move to Universal Credit via managed migration, and they will therefore be eligible for transitional protection. (Announced June 2018).
Live service closure expected 31/03/19
Advances date TBC – expected Autumn 2019
Mixed aged couples who can choose UC or Pension Credits will be only allowed to claim UC: 01/02/19
2 Child gateway reopens: 01/02/19
SDP claimants will be allowed onto UC at a later date when regulations that are currently in discussion are confirmed to provide some kind of transitional protection. In addition, we will provide both an on-going payment to claimants who have already lost this Premium as a consequence of moving to Universal Credit and an additional payment to cover the period since they moved.

11. All Universal Credit phone lines are now free
Phone Line Name
Freephone number
Live Service
Full Service
Live Service – Landlord Escalation Line
UC live service to full service transfers
UC/Working Age Welsh line
UC Text phone
Payment services – creditors/landlords
Payment services – customer contact