1. Universal Credit – Darlington Partnership Presentation Jonathan Fay 24 th January 2014

2. 2 Welfare Reform We have already begun on this journey… Personal Independence Payment Targeted support, helping disabled people to lead independent lives. Benefit Cap & Housing Benefit Cap Benefits no longer greater than average weekly wage or average rents Greater conditionality Responsibility to actively seek work Jobseeking support Tailored support through the Work Programme, Universal Jobmatch and £1 billion investment in Youth Contract

3. 3 Universal Credit is at the heart of these reforms. It aims to simplify the benefits system and help and ensure people are better off in work than on benefits while providing support for those who need it Welfare Reform

4. 4 Universal Credit Will eventually replace six main working age benefits with one simple payment Is paid monthly Can be paid to people in work or out of work How is it different? Claimants will be able to apply for their benefit online. Nearly 80 per cent of benefit claimants already use the internet, but telephone and other support services will be available if needed. Universal Credit will be paid monthly, in line with most people working in the UK and will include any support for housing costs claimants are entitled to. Universal Credit will require claimants to accept a Claimant Commitment which sets out what is expected in return for receiving assistance, taking into account personal circumstances and capability to earn. Those who break the terms of their commitment will face penalties. Universal Credit Work Services Coaches will help claimants become more independent by supporting them in their worksearch activities. They will help claimant plan and focus their jobsearch as well as set them actions that give them best chance of finding work. Universal Credit will provide claimants with local support if they need extra help with doing things like getting online, budgeting or managing direct payments Universal Credit Income based Jobseekers Allowance Income based Employment and Support Allowance Working Tax Credits Child Tax Credit Income Support Housing Benefit

5. 5 Universal Credit helps to ensure people are better off in work than on benefits by: Removing the limit to the number of hours someone can work each week Reducing a claimant’s Universal Credit payment gradually as their earnings increase, so they won’t lose all their benefits at once if they’re on a low income. Better off in work Universal Credit payment Total in-pocket income Gross earnings Total net earnings

6. 6 Local Area Support for claimants with complex needs Budgeting Work Online Housing Support for claimants LA Services National Partners Local Partners Jobcentre Plus