Welfare to Work Convention Manchester 9 and10 July Universal Credit - breakout sessions

Universal Credit Policy and Claimants Rachel Nicholls and Gemma Brown 2

What we are going to talk about The overarching policy for Universal Credit The conditionality groups and conditionality regime within Universal Credit The Claimant Commitment and how this underpins the conditionality regime Universal Credit – our challenges There will also be the opportunity to ask questions

The Welfare Reform Context The Reform Story The Welfare Reform Context The Welfare Reform Act introduced the most fundamental reforms to the social security system for 60 years. It aims for a simpler, fairer benefits system and to ensure work pays. We will ensure that support continues to be available to those who need it most. Employment must be an aspiration for everyone who is able to work. Our services are changing to reflect the diversity and complexity of the issues that many people in society face today, requiring more joined-up working across government and beyond. “A system that was originally designed to support the poorest in society is now trapping them in the very condition it was supposed to alleviate” Iain Duncan-Smith, Secretary of State for Work and Pensions 4

Welfare Reform and Universal Credit that tackles welfare dependency, poverty and worklessness by making work pay A policy that replaces a complex system of working-age (in/out work benefits and credits) with a single set of rules. A single payment will be made to a household A benefit that together with our employment support programmes, helps people into work. Formed around a Claimant Commitment A gateway largely self service; Claimants able to apply on line - whilst continuing face-to-face support for those who need it A platform An ambition transforming lives and society through work

Universal Credit – what’s changing? Universal Credit replaces six main benefits, moving from the complexities of the current system into a simpler one for people in work or out of work. Universal Credit is formed around a new ‘claimant commitment’ which sets out what is expected in return for receiving assistance, taking into account personal circumstances and capability to earn. 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. As claimants earn more money, financial support will be withdrawn at a slower rate under Universal Credit than is the case with the current system. 6

Universal Credit will incentivise work Universal Credit will remove the barriers and disincentives to work: By closing the gap between in and out of work The current need to claim different benefits when working 16 hours or more will disappear. Even working just a few hours will make a difference. Universal Credit aims to ensure that people will be better off in work and find it easier to start a new job or work more hours. As earnings increase, Universal Credit will reduce gradually.  Support will be structured to target help at those with the greatest barriers to work – through work allowances. 7

Universal Credit supporting claimants into work Universal Credit claimants are expected to use Universal Jobmatch, an intelligent job matching service, which helps employers to get the best fit for the jobs that they have on offer. Universal Credit aims to support job seekers to raise their expectations of what they can achieve, encouraging responsibility. Those who are fit and ready for work will be expected to look for a job on a full time basis dependant on circumstances. Universal Credit will encourage a new type of relationship between claimants and advisers. Advisers will support and challenge claimants to help them fulfil their potential, but will also be firm when required. 8

Conditionality and the Claimant Commitment clarifies expectations and consequences a focus on work related requirements – proactive, job search is a full time activity sets foundation for key UC principles around clearer incentives to work Co-operation financial support ; expectation that claimants are doing all they can to prepare for and find work, more work or better paid work Conditionality each adult in a household will have their own Claimant Commitment 4 categories of conditionality No Work Related Requirements; Work Focused Interviews requirements only; Work Preparation requirements ; and All Work Related Requirements individual requirements will depend on what we can reasonably expect given their individual capability and circumstance around Work-focused interviews; work preparation; work search; work availability.

Work focused interview requirements No work related requirements Universal Credit claimants will fall into different “conditionality groups” according to their particular circumstances and capability. Claimant characteristics Conditionality group Conditionality Requirements (for example) All requirements can be applied, claimants must normally be required to look for work and be available for work. Failure to do so without good reason leads to benefit sanctions. All work related requirements Claimants not required to look for work or be available for work. But will be required to take steps to prepare for work e.g. attend training courses or participate in employment programmes. Work preparation requirements Claimants assessed as having limited capability for work Claimants are required to attend work focused interviews with an adviser to discuss work and practical steps to prepare for future employment Work focused interview requirements Responsible carer for children (aged 1 to 5) Responsible carer for children under 1, full time carer for severely disabled person. Working and earning above their Conditionality Earning Threshold No work related requirements No work related requirements are applied

Within these groups claimants fall into 6 broad segments Working enough (individual and household) i.e. over the individual conditionality threshold (expected hours of work * NMW); and / or over the household threshold Working could do more Claimants expected to take action to secure work, more work or better paid work – “All work related requirements conditionality” Not working Too sick to work right now Too committed to work right now Tailored Claimant Commitment Too sick to work

And compared to the current system there will be many more claimants within the reach of conditionality. But at this stage the intensive regime applies to the same claimants as now, with a “light touch” regime for everyone else In work – not eligible for current benefits, but not earning all we could reasonably expect light touch Working could do more Very low earnings – but with a working partner light touch Very low earnings – eligible for current benefits Intensive / active regime Workless claimant but with a working partner light touch Not working Workless – eligible for current benefits Intensive / active regime

The Claimant Commitment All Universal Credit claimants are required to accept a Claimant Commitment as a condition of entitlement (requirement may be removed in exceptional circumstances) Couples living in the same household will make a joint claim for Universal Credit and each will have their own individual Claimant Commitment. If either adult in a couple refuses to accept their Claimant Commitment then the other adult will also not be entitled to Universal Credit May be accepted as part of the normal claims process and where appropriate is drawn up by their adviser during a face to face discussion The Claimant Commitment will depend on the claimant’s circumstances (including conditionality group) It is individually tailored to the claimant’s circumstances, capability and work related expectations If a claimant disagrees with the work related requirements detailed in their Claimant Commitment they can ask for a second opinion.

The Work Search Interview – Drawing up a Claimant Commitment Diagnosis of Claimant Capability and Circumstances Pre-Interview Preparation Claimant Commitment + Pack Introduction and Information Gather Setting Work Search Requirements 5 Core Elements Setting Interventions Regime Setting Work Preparation Actions

Claimant Commitment – feedback from trials The Claimant Commitment has been trialled in the ‘live innovation’ site in Stretford Jobcentre- here’s what advisers have said about it: ‘There’s more ownership because the claimant has actively contributed – so there’s more chance they’ll do what they say they will do’ ‘It focuses the interview more on what the claimant needs to do’ ‘It’s bespoke as opposed to a generic JSAG’ ‘Claimants are more aware of the consequences of non–compliance’ Claimant Feedback – ‘they feel they are treated as an individual and that we do want to help them’ ‘It shows that we have an interest in their customer journey therefore gaining their commitment’

Universal Credit Challenges Scale Converting 12 million claims to 8 million household accounts in 4 years Claimant base In and out of work claimants Culture Change Conditionality Claimant responsibility Relationship with work Incorporates a number of complex benefits JSA, IS, ESA, HB, CTC/WTC Claimant experience Self Service UC payment Claimant support

Any questions?