1. Universal Credit 1

2. 2 Simplifying the benefits system The legacy welfare system is complex in its structure, administration and how the different qualifying conditions interact with each other. To simplify the legacy benefit system DWP has: –Created a new legislative framework. –Implemented a single system of means tested support. Universal Credit provides a new single system of means-tested support for working-age households who are in or out of work. All elements are assessed in a single claim which removes the need to claim different means-tested benefits from different agencies..

3. 3 Simplifying the benefits system Universal Credit will replace; Jobseekers Allowance (IB) Employment and Support Allowance (IB) Income Support Housing Benefit Working Tax Credit Child Tax Credit Claim made online Single monthly payment to the household Housing costs paid direct to the tenant Claimant Commitment For people in and out of work

4. 4 What’s different about Universal Credit? IT ENCOURAGES WORK IT’S LIKE WORK IT’S ABOUT WORK PAID MONTHLY PAID DIRECTLY CLAIMANT COMMITMENT – LIKE A CONTRACT IN AND OUT OF WORK CLAIMANT COMMITMENT REQUIREMENTS FULL TIME WORK SEARCH EARNINGS, NOT HOURS A SIMPLE TAPER SO BETTER OFF IN WORK EASY TRANSITION UC TO WORK (AND BACK)

5. 5 Universal Credit – one year on

6. 6 Real Time (Earnings) Information RTI is working for employers - the majority of employers are submitting PAYE data in real time. RTI data working for claimants – RTI data is used in approximately 30% of UC payment calculations. Claimant Employer

7. 7 UC Claimant Journey – Pictorial Representation Customer Touch Points Online/ UC Helpline UC Service Centre If the claimant has a change of circumstance it is reported to the Service Centre. The claimant is notified regarding any change to the award of Universal Credit The MOU scan the claim on to the Data Repository System (DRS). Any evidence or correspondence sent in separately by the Claimant creates a CAMLite task for the agent in the SC. On receipt of the task, the agent updates the UC Portal. Once all evidence has been verified, this triggers the processing of the UC claim The Jobcentre print the UC claim and obtain a signature from the claimant. Any additional information is gathered and the Claimant Commitment (CC) is completed. The UC Portal is updated and the claim documents and any supporting evidence are sent to the Mail Opening Unit (MOU) On receipt of the online UC claim, the Service Centre (SC) contact the Claimant by telephone to arrange an interview at the Jobcentre. An SMS text message is issued to remind the claimant about their appointment Claims to Universal Credit (UC) are made on- line. If a claimant requires assistance, the Universal Credit Helpline is available. In exceptional circumstances, claims can be made by telephone or face to face Business Process I receive a telephone call inviting me to attend an interview in the Jobcentre I notify the UC Service Centre if there is a change in my circumstances I receive a text message to remind me about my interview at the Jobcentre I receive my UC decision letter which includes my payment schedule if appropriate. I am also advised about my on- going responsibilities as agreed in my CC I am asked to attend the Jobcentre I receive a notification to advise me that my Universal credit entitlement has changed or ceased I get information or advice about how to claim Universal Credit (UC) I make my claim on-line. If I need help, I can telephone the Universal Credit helpline for assistance I attend my interview in the Jobcentre and take any evidence that has been requested. I sign my printed claim and complete the Claimant Commitment (CC) Jobcentre UC Service Centre Claims Closure The Claimant is invited to attend the Jobcentre to undertake specific work related activity as agreed in the CC. There is on- going interaction at the JC I send any additional missing evidence to the Mail Opening Unit (MOU) UC Service Centre Jobcentre I attend the Jobcentre and engage in work related activity

8. 8 01/01 Date of Claim +7 days 1 st UC Payment Calc/notification to claimant: 08/02 1 st UC Payment Received by Claimant: 14/02 Regular UC Assessment Period 2nd UC Payment Calculation: 08/03 2 nd UC Payment Received by Claimant: 14/03 An example claim 07/02 07/03 08/01 Start Assessment 7 Waiting Days

9. 9 Payment Advances Universal credit payments will be issued monthly through the BACS system. New claimants and those transitioning from legacy benefits may be eligible for an advance of their indicative award to help them manage during the first assessment period if they need it. For UC Advance (New Claim) the claimant will be advised that if they can't manage they can claim an advance. They would need to repay the advance over the next 6 months. For a UC Advance (Transitional) the claimant will have to ask for the advance within one month of moving across to UC. These UC advances will provide an interest-free lending facility for claimants who find it difficult to access mainstream credit, and could offer an alternative to high cost borrowing. A claimant can request an advance of up to 50% of their indicative UC award. The UC Advance (New Claim) can be claimed up to 21 days from the date of claim during the first month and will be issued via BACS after 3 days.

10. 10 Alternative Payment Arrangements Alternative Payment Arrangements. For a minority of claimants, alternative payment arrangements may be required; these might include: –paying the rent directly to the landlord. –making more frequent than monthly payments. –splitting the payment within the household. We will also have the option to make rent payments direct to the landlord if a claimant reaches a certain level of rent arrears.

11. 11 Alternative Payment Arrangements – Consideration Factors Tier One factors – Highly likely / probable need for alternative payment arrangements 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 Tier Two factors - Less likely / possible need for alternative payment arrangements 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

12. 12 Universal Credit and Housing Costs Registered Social Landlords(RSL’s) UC brings significant changes to RSLs. Currently they receive over 98% of HB payments direct, under UC the monthly payment will be sent direct to claimants. RSL’s have been preparing their tenants for these changes and making sure they understand their responsibilities and the support available. We have introduced data sharing legislation in January 2015 to help manage claimant payments. If rent arrears occur an Alternative Payment Arrangement can be applied for. Arrears can also be deducted from UC. We are developing closer working relationship with landlords.

13. 13 Universal Credit and Housing Costs Private Landlords UC changes do not affect Private Landlords as significantly as RSLs as currently they only receive payments direct to them when the claimant is vulnerable. Around 30% of current Housing Allowance payments in the private sector are paid to the landlord. Closer relationship with tenants needed – to support them through this transition. Private rented sector HA cases are paid 4 weeks in arrears and under UC this will be monthly. Landlords can request an alternative payment arrangement when a rent arrears 'trigger' of two months of arrears has been reached. Payments can then be switched to a managed payment of rent to the landlord.

14. 14 Personal Budgeting Support Online budgeting tools for claimants who can help themselves - such as those offered by Money Advice Service and Citizens Advice. Advice services offered by external organisations for those who need more support with, for example, getting a bank account or doing a monthly budget plan. Advice will be delivered through online, telephone and face-to-face channels by expert providers at a national and local level. A personal planner is available on gov.uk to help claimants understand and prepare for financial changes arising from the introduction of Universal Credit. Up to 1.3 million potential UC claimants currently do not use a transactional bank account to manage their benefit payments. We are looking at ways to make accounts with budgeting functionality, such as ‘jam jar’ accounts, more widely available. We are consulting with financial providers across the private, social and third sectors and considering the best ways to make these types of products more available.

15. 15 Personal Budgeting Support Alternative Payment Arrangements. For a minority of claimants, alternative payment arrangements may be required; these might include: –paying the rent directly to the landlord. –making more frequent than monthly payments. –splitting the payment within the household. We will also have the option to make rent payments direct to the landlord if a claimant reaches a certain level of rent arrears.

16. 16 Useful links for stakeholders An introduction to Universal Credit video http://youtu.be/E7GUu7Xa7Nw Universal Credit pages on GOV.UK https://www.gov.uk/universal-credit A toolkit for Partners https://www.gov.uk/universal-credit-toolkit-for-partner-organisations The Claimant Commitment https://www.gov.uk/universal-credit-toolkit-for-partner-organisations#the-claimant- commitment A Personal Planner to help claimants prepare for Universal Credit http://ucpp.dwp.gov.uk/universal-credit-preparation/ A pictorial representation explaining Better off in Work https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/301408/ho w-uc-tops-up-earnings-to-make-work-pay.pdf https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/301408/ho w-uc-tops-up-earnings-to-make-work-pay.pdf Budgeting help and support https://www.gov.uk/government/publications/budgeting-your-universal-credit-quick-guide Operating Guidance for Personal Budgeting Support & Alternative Payment Arrangements https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/181399/pe rsonal-budgeting-support-cover-note.pdf https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/181400/pe rsonal-budgeting-support-guidance.pdf https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/181399/pe rsonal-budgeting-support-cover-note.pdf https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/181400/pe rsonal-budgeting-support-guidance.pdf The Local Support Services Framework https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/181395/uc -local-service-support-framework.pdf https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/181395/uc -local-service-support-framework.pdf

17. 17 Useful links for stakeholders The Money Advice Service https://www.moneyadviceservice.org.uk/en A Money Advice Service Universal Credit video https://www.moneyadviceservice.org.uk/en/videos/get-ready-universal-credit Making work pay comparison graph explaining how Universal Credit compares to the current system when claimants increase their hours https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/301411/ho w-uc-helps-to-make-work-pay.pdf A quick guide for employers about Universal Credit and RTI https://www.gov.uk/government/publications/universal-credit-works-for-employers-and- claimants-quick-guide HMRC and RTI http://www.hmrc.gov.uk/payerti/getting-started/paye-basics/rti.htm Eight Ways Universal Credit can help your business https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/307091/ho w-uc-can-help-your-business.pdf