Presentation on theme: "Universal Credit & Welfare Reform Implications for The Princes Trust and the young people we work with."— Presentation transcript:
Universal Credit & Welfare Reform Implications for The Princes Trust and the young people we work with
"The Universal Credit will mean that work will pay for the first time, helping to lift people out of worklessness and the endless cycle of benefits. Whilst those people who need our help and support will know they will get it without question - Iain Duncan Smith, March 2012 Too complex Lack of incentive to work Why?
Universal Credit – What? It will combine all of the means tested support for working age adults and children into one benefit: Income support Income-based jobseekers allowance Income-based employment and support allowance Housing benefit Child tax credit Working tax credit Universal Credit
29 other benefits remain Universal Credit – What?
Universal Credit - Who? Unemployed In low paid work A lone parent Sick or disabled A carer Need help with living expenses, including rent or mortgage If you are......you will claim Universal Credit
Universal Credit – Who? Aged 18 or over Resident in Great Britain Not in education Subject to claimant commitment Savings and capital below £16,000 Income (or combined income) sufficiently low Conditions:
Universal Credit – How much? a standard allowance an amount for each child an amount for each disabled child an amount for an ill or disabled adult an amount if you are a carer an amount for housing costs an amount for childcare costs The sum total of the above will give the maximum Universal Credit for an individual or a couple. However, if the claimant(s) receive(s) any earnings and/or income or has any capital, the maximum amount is likely to be reduced.
Universal Credit – How? digital by design monthly assessment and payment direct payment of housing costs single payment per household
Universal Credit – Conditionality Claimant commitment Conditionality group: No work-related requirements Work focused interviews Work focused interviews and work preparation All work-related requirements Actively looking for work Available for work 35 hours
Universal Credit – Conditionality What have you done wrong 1 st offence2 nd offence3 rd offence Failed to apply for or take job 13 weeks26 weeks3 years Failed to be available for work 4 weeks13 weeks Failed to undertake specific activity of attend JCP interview Until comply and 1 wk after Until comply and 2 wk after Until comply and 4 wk after
Apr 2013Apr 2014Dec 2015Oct 2017Sep 2013 Pilot No new JSA, ESA or Income Support claims Housing Benefit phased out Can begin claims if in low-paid work, and no previous tax credits No new claims for tax credits No new housing benefit claims All JSA, ESA and Income Support claims to UC Leftovers transferred Universal Credit – When?
Universal Credit – in summary There is a single payment which covers unemployment and low employment benefit, children, childcare, caring and housing costs. The number of hours worked does not affect entitlement As your income increases, your benefit reduces, but you keep 35p of every extra £1 you earn You do not need to report changes in your earnings, as there is real-time information from HMRC If you are in a couple, you will make a joint claim Claims are online and payments are monthly