Universal Credit Katy Pearson, Monica Bryce and Rob Harrod Priority Families Employment Advisors Clare Boyce Universal Credit Work Coach 1

Universal Credit (UC) Introduced in Nottingham City in February 2016 Initially for new single claimants, but will migrate existing benefit claims from July 2019 and complete by 2020 Support in place for vulnerable claimants 2

Full Service Roll Out and Digital Service Being rolled out in phases across the country and the plan is to have it fully implemented within Jobcentres by the end of 2018 Benefits will be maintained digitally online Once a jobcentre is on full service, they will only accept new claims for UC, no other benefit types. Anyone on older benefits (such as income support), will be transferred over to UC by 2022. These claimants will not be managing their benefit claims online. For all UC claimants, under full service roll out, Contact with jobcentre and benefit centre will be online Arrangements in place for extended hours Just like online banking, utility services, etc. 3

Universal Credit – overview Housing Benefit Income related Employment and Support Allowance Income based Jobseekers Allowance Universal Credit Child Tax Credit Working Tax Credits Income Support One simple payment Paid monthly For people in and out of work Use PAYE in real time information (RTI) Universal Credit supports people who are on a low income or out of work, and helps ensure people are better off in work than on benefits.   Universal Credit is claimed instead of six main working age benefits with one simple payment: Income-based Jobseeker’s Allowance Income-related Employment and Support Allowance Income Support Working Tax Credit Child Tax Credit Housing Benefit Universal Credit is paid monthly – in a single payment to a household rather than an individual. This includes housing costs and is paid monthly in arrears. It is for people in work (on low incomes) and out of work Uses PAYE in real time information (RTI) – a revolutionary change in the way earnings are handled by HMRC, which

Conditionality Groups All Work Related Requirements (AWRR) Group 2 regimes Intensive – Earning £0 - £338 per month Light Touch – Earnings £338 and above per month No Work Related Requirements (NWRR) Group Working enough – Earning over a certain threshold No Work related – Assessed as having Limited Capability for work and work related activity or a carer. Personal circumstances and earnings will determine which group a person is in and frequency of attendance

Benefits? Benefits of Universal Credit Easier Transition from Benefits to Work Easier Control of Benefit for Zero Hour Contracts Benefits of Universal Credit Multi-Agency Working Reduces Fraud and Error Gives responsibility to manage own finances, preparing them for the world of work So what are the benefits ……

Housing costs direct to tenant Single payment to household Personal Budgeting Support – Why? Support for those that need it to manage the changes Universal Credit brings: Housing costs direct to tenant Single payment to household Monthly Payment DWP want to help people to manage their own finances successfully, whether they are in or out of work…… What are Alternative payment Arrangements (APAs)? The move to a single monthly household payment will be a significant change to the way most benefits are currently paid. The following APAs will be available to help claimants who are identified as needing additional support: Paying the housing costs from Universal Credit as a Managed Payment direct to the landlord More frequent than monthly payments A split payment of an award between partners Considered on a case by case basis and assessed on their individual needs The decision about whether an Alternative Payment Arrangements is suitable will be made by a Universal Credit Decision maker through the Personal Budgeting Support process.

What are Alternative Payment Arrangements (APAs)? The move to a single monthly household payment will be a significant change to the way most benefits are currently paid. Claimants who are identified as needing additional support may be eligible for: Paying the housing costs from Universal Credit as a Managed Payment direct to the landlord More frequent than monthly payments A split payment of an award between partners When can Alternative Payment Arrangements be Considered? APA’s can be considered at any point during the Universal Credit claim. The service Centre will actually contact The Work Coach to ask if they think an APA should be considered and if so, the Work Coach can decide what type of arrangement and for how long The need may be identified in the Service Centre or jobcentre, alongside PBS (Personal Budgeting Support) or during the claim, eg if the claimant is struggling with the single monthly payment. They can also be triggered by information received from the claimant, their appointee, their caseworker or their landlord, advising of a build up of rent arrears They can ask for the housing costs to be paid directly to them where a rent arrears trigger has been reached, i.e. 2 months or more. To safeguard the claimant’s home, a landlord can notify Universal Credit of a build up of rent arrears

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   Factors to consider for alternative payment arrangements Tier One factors – Highly likely / probable need for alternative payment arrangements Drug / alcohol and / or other addiction problems e.g. gambling - Claimant declares/ has declared on a previous claim a problem with substance abuse - Claimant considers themselves to be addicted/ a regular user - Substance misuse includes problems with alcohol, any type of illegal drug or improper use of non illegal substances e.g. glue - Feedback from third parties about the individual’s addiction should also be taken into account e.g. support agency staff. Learning difficulties including problems with literacy and/or numeracy - Claimant has difficulty reading, writing and/or performing simple mathematical tasks, - May be evidenced by low/no educational achievement - May also be linked to a medical condition (e.g. Autism, Downs Syndrome etc) Severe / multiple debt problems - Claimants are unable to meet credit commitments from available income, taking account of minimal necessary expenditure. This may include personal loans, mortgage repayments, utility arrears and other debts of debt - Severe debt problems could be evidenced by multiple debts and/or non payment of multiple debts over a period of 2 months or more and possibly heavy use of the new localised welfare assistance schemes. - The key factor is that the claimant has not made a repayment plan or is not sticking to the terms of a repayment plan and is a very disorganised and chaotic money manager. In Temporary and / or Supported accommodation - This includes both temporary accommodation (such as B&Bs) and supported accommodation (e.g. homeless hostels, domestic violence refuges, specialist accommodation for disabled people) - This could also include independent accommodation with housing related support (previously Supporting People) provision attached, such as floating support. - Consider only if the claimants status in this accommodation impedes their ability to manage their financial affairs effectively as some types of accommodation will be short stay, but others will have longer tenancies of two years of more and many claimants will be able to manage the UC single monthly payment. The focus should be more around the type of ‘support’ provided rather than the accommodation type when considering if alternative payment arrangements are appropriate. Homeless - As per the Housing Act 1996, a claimant is homeless if they have no accommodation that it is safe or reasonable for them to occupy, or if they are expected to have no access to accommodation within 28 days. - In practice, this includes people who are rough sleeping, people who are sofa surfing with friends or relatives, people in hostels, people who are about to be evicted and people in unsafe and unsuitable accommodation such as squats. - Should have been homeless for more than 2 weeks or not at the same address for no more than 1 month. - But do consider that some claimants who are homeless may still be financially capable. Domestic violence and abuse - Claimants who are currently suffering domestic abuse, or have had domestic abuse inflicted on them. - This includes any incident of threatening behaviour, violence or abuse (psychological, physical, sexual, financial or emotional) between adults who are or have been intimate partners or family members regardless of gender or sexuality. This can also include forced marriage and so-called “honour crimes”. - Abuse that forms a pattern of coercive and controlling behaviour e.g. controlling the other person by using a variety of financial means Mental Health Condition - Claimant has a mental health condition (e.g. phobia, bi-polar disorder, severe depression) which impairs their ability to manage their own affairs effectively - Feedback from a third party about the symptoms that the individual has should be taken into account, including any evidence from legacy information held. Currently in rent arrears / threat of eviction / repossession - Claimant is currently in arrears with their rent for an amount equal to or more than two months of their rent - Claimant has continually underpaid their rent over a period of time, and they have accrued arrears of an amount equal to or more than one month’s rent - Claimant has been evicted for rent arrears within the last 12 months - Claimant is subject/ threatened with eviction and/or repossession. Claimant is young either a 16/17 year old and / or a Care leaver - 16/17 year olds – many will have limited if no financial capability and in order to claim UC will have to be in some form of hardship already (i.e. estranged from parents, have a child, be sick/disabled etc.) - Care Leavers – Claimants who have recently been in local authority care and includes those over 17, most claimants leave care at 18, but some leave as early as 16 or as late as 25. Families with multiple and complex needs Claimant is part of a family that is part of the Troubled Families Programme - Other families with multiple and complex needs could include a combination of persistent offending behaviour, persistent anti-social behaviour, mental health issues, drugs and alcohol issues, domestic violence, safeguarding issues and debt - Feedback from third parties e.g. family intervention case worker about the complex and overlapping nature of problems in the claimant's family should be taken into account

Tier Two Factors – Less Likely / possible need for Alternative Payment Arrangements 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  Tier Two factors – Less likely / possible need for alternative payment arrangements   Third party deductions in place (e.g. for fines, utility arrears etc) - Claimant is currently making payments from benefit to repay utility arrears (e.g. gas, water, electricity) - Or will be considered for rent arrears deductions as they are more than 2 months in arrears with their rent Claimant is a Refugee / asylum seeker - This definition applies to those claimants who have been granted refugee status, with indefinite leave to remain and with recourse to public funds within the last 12 months. - Claimant is an asylum seeker who is eligible to claim DWP benefits while their application is being processed - Their status impedes their ability to manage their own financial affairs effectively History of rent arrears - Claimant is not in arrears but may have been within the last 12 months and was subject / threatened with eviction and / or possession. - Consider the fact that the claimant may now be financially capable and able to manage their own financial affairs effectively. Previously homeless and / or in supported accommodation - Claimant was homeless (as per definition above) within the last 12 months but is now in suitable accommodation. - Claimant has moved from supported housing into independent accommodation within the last 12 months. Other disability (e.g. physical disability, sensory impairment etc). - Claimant has a disability/ impairment not covered by the ‘mental health section that impairs their ability to manage their own financial affairs effectively Claimant has just left prison - Claimant has left prison within 3 months of making their claim to UC. - Consider only if their status impedes their ability to manage their UC financial affairs effectively, budgeting support may be the answer rather than an alternative payment arrangement.

Ongoing Developments… DWP have introduced rent arrears triggers to help protect landlords and tenants alike DWP have taken steps to improve the take up of budgeting support Dedicated teams to manage housing and Alternative Payment Arrangement cases Provision of single point of contact details to LAs and social landlords DWP have established a dedicated network of single points of contacts  

An example claim +7 days 31/10 30/11 01/10 End of waiting days 24/09 7 waiting day Period Regular Universal Credit Assessment Period 31/10 30/11 01/10 End of waiting days 1st Universal Credit Payment Calculation / notification to claimant: 01/11 2nd Universal Credit Payment Calculation: 01/12 24/09 Date of Claim 1st Universal Credit Payment Received by Claimant: 07/11 2nd Universal Credit Payment Received by Claimant: 07/12 12

Payment Advances: New Claims Based on an indicative claim of £1000 pcm (3 days) (35 days) +7 days 31/01 28/02 Regular UC Assessment Period Standard Monthly Payment 1st payment: £1000 2nd payment: £1000 Payment minus repayment of UC advance (new claim) UC Advance (up to 50%) £500 £926.67 £926.67

Domestic Abuse Let’s look at the barriers that survivors of domestic abuse might face when considering returning to work

Support for Survivors of Domestic Abuse Support through Jobcentre plus work coaches with domestic abuse easements:- If they have experienced domestic abuse within last 26 weeks Initially 4 weeks excused from any conditionality Once confirmation received from support worker, a further 9 weeks break from conditionality with a Jobcentre without affecting benefit payments Only 1 x 13wk easement in a 12 month period, but there are other processes in place if further support is required

Homelessness Let’s look at support for those who are made homeless

Support for Homeless Support through Jobcentre plus work coaches with homeless easements:- If they are ‘recently’ homeless, they can be excused from Jobseekers conditionality They must be taking steps to find accommodation Reviewed by the work coach fortnightly Although initially a 4 week easement, work coaches can extend if they feel it is appropriate to do so The Regulations allow Jobcentres to treat certain homeless claimants as meeting the job seeking conditions for periods of longer than one week with no limit on the number of occasions on which it can be applied. It will be for Jobcentres to decide whether a claimant’s homelessness constitutes a domestic emergency. If it does, then the easement must be applied. This conditionality easement is dependent upon the claimant taking reasonable action to find living accommodation. A claimant to whom the easement may be applied: will have homelessness as the main barrier to finding and retaining a job will be recently homeless It is not expected that a domestic emergency due to homelessness would last for more than four weeks. Although the easement can be extended beyond four weeks if the Work Coach decides that it is appropriate If the conditionality easement is awarded, it will remove the requirement for the claimant to be: available for work actively seeking work be subject to a Jobseeker’s Direction participate in (or be referred to) the Work Programme or other employment scheme of any description for the duration of the easement

Let’s look at support for people with debts

Support with debts Specialist debt management support such as Nottingham City Council Welfare Rights, Framework, Foothold, Money Sorted in D2N2, etc. In Work Benefit Calculations Tax Credits and Childcare Support

Useful Links Universal Credit pages on GOV.UK https://www.gov.uk/universal-credit Budgeting help and support https://www.gov.uk/government/publications/budgeting-your-universal-credit-quick-guide Money Advice Service support for Universal Credit https://www.moneyadviceservice.org.uk/en/categories/universal-credit Priority Families Employment Advisors http://www.nottinghamcity.gov.uk/ics/index.aspx?articleid=30536

Priority Families Employment Advisor Contact Details Nottingham North: Katy Pearson - 07771 837588 Katy.pearson@nottinghamcity.gov.uk   Nottingham Central: Monica Bryce – 07920 155014 Monica.bryce@nottinghamcity.gov.uk    Nottingham South: Rob Harrod – 07920 181547 Rob.harrod@nottinghamcity.gov.uk

Any questions?