1 Universal Credit Community Housing Cymru Helen Matthews March 2015

2 Universal Credit – Transformation The scale and transformative nature of Universal Credit make it one of the Government’s most complex and ambitious reforms. Over the last 30 years, public attitudes towards welfare have changed significantly. Today there is a greater expectation that people should take more responsibility, and that welfare should be the preserve of those who really need it. Universal Credit aims to alter the landscape of work for a generation by fundamentally changing the behaviour of four key groups: jobseekers, employers, Jobcentre Work Coaches and local authorities. Over the next year, DWP will make further substantial steps towards its transformation of the welfare system and labour market, realising the significant economic benefits of Universal Credit, as well as saving the taxpayer money.

3 Universal Credit at Work In October 2014, Universal Credit at Work presented compelling evidence that the transformation of the labour market and welfare state is well underway. In the four months since, Universal Credit has expanded to more parts of the country and the evidence is demonstrating the efficacy of the new system. launched a trial of the Universal Credit Digital Service in Sutton, South London; equipped Work Coaches with a new labour market measures; developed Randomised Controlled Trials to further understand how best to support those looking to increase their income through work; continued to develop partnerships with Local Authorities, landlords and employers to identify effective delivery plans for claimants with varying needs; and, analysed new data demonstrating that Universal Credit claimants are more likely to be in work, spending more time in work, and earning more.

What’s different about Universal Credit? IT ENCOURAGE S 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)

Universal Credit - Roll out to date Progressive roll out of the Universal Credit live service to a total of 96 Jobcentres in England, Scotland and Wales, mainly in NW England Including Shotton (Flintshire) in N Wales Universal Credit now available in those areas (with some exceptions) to: single people and couples without children who would otherwise claim JSA, including existing Housing Benefit claimants families (first 32 Jobcentres in January (included Shotton), all 96 Jobcentres from 2 March)

7 Future rollout – 2015 National expansion of the live service from February. All remaining Jobcentres will take claims from single people who would otherwise claim JSA Roll out in 4 tranches – the tranche 1 and 2 lists have been published on GOV.UK with dates (Feb – July 2015) –Tranche 1 includes Torfaen, Neath Port Talbot, and Wrexham LAs – as well as Flint and Mold as additional Jobcentres in Flintshire –Tranche 2 includes Bridgend, Caerphilly, Conwy, Denbighshire, Newport and Swansea LAs –Tranche 3 and 4 planning assumptions also published Further testing and preparation of the digital service during 2015/16

8 Future rollout – The last new claims to benefits UC replaces will be accepted during 2017 Following this, the remaining people claiming existing benefits will progressively decline We will then migrate the remaining claims to Universal Credit. The current business case assumes for planning purposes the bulk of this activity will be complete by 2019.

9 Test and learn NATIONAL SINGLES EXPANSION LIVE SERVICE in NW England and 6 other Jobcentres MIGRATION TRANSITION TO DIGITAL SERVICE ALL NEW CLAIMANTS Universal Credit timeline Test digital service Couples and existing HB claimants Families

10 Key messages for local authorities (1) Roll out implications for benefit services All LAs not already live will go live with new UC claims for single unemployed claimants in a gradual rollout from February 2015 All new claims to existing benefits, including working age Housing Benefit, will cease by the end of 2017 Some managed migration may be needed during We have been talking to local government representatives about planning the rollout schedule for all these stages LAs may need to maintain some provision for working age HB into 2018 –Under current arrangements, some claimants in supported accommodation will still receive HB LAs will need to continue to administer pension age HB until at least –It is intended to replace this with a housing element of pension credit at a later date

11 Key messages for local authorities (2) Local delivery partnerships For 2015 expansion, interim UC delivery partnership agreements will be put in place with each LA to ensure funding is available to cover costs and provide services for those who need additional help New regulations to enable better data sharing are now in force: –between social landlords and DWP –between all DWP, LAs and key partners involved in Universal Support = delivered locally delivery partnerships

12 Key messages for local authorities (3) Going forward HB administration subsidy for will not be directly affected by UC rollout plans (although subject to other pressures); and we will discuss appropriate funding levels for with sector representatives LAs and DWP need to develop partnerships and map services to prepare for the Universal Support – delivered locally, when expansion is widened to other claimant groups –LAs will be lead partner for USdl until at least 2020

13 LA Delivery Partnership Agreement 2015/16 Services LA will deliver –Supported on-line access –Personal Budgeting Support –Support for UC Service Centre –LA to determine how best to deliver these services Costs for services – broken down by –Supported on-line access –PBS –Support for UC Service Centre –Landlord and other communications –Management

14 Universal Support Trials Sept 2014 – eleven Universal Support trials commenced, to run until August 2015 Blaenau Gwent and Carmarthenshire in Wales To provide evaluated learning about how partnerships can support those who need additional help to make and manage a UC claim To inform future framework development in Autumn 2015 Key aspects: –triage and orientation –access to digital support. –financial inclusion –partnership development. Derby City Islington South Staffs West Lindsey, City of Lincoln, North Kesteven & Lincolnshire Argyll and Bute Dundee City Blaenau Gwent Carmarthenshire Lambeth/ Lewisham/ Southwark Northumberland and South Tyneside Westminster and Royal Borough of Kensington and Chelsea

15 Working with landlords We're working closely with social landlords such as councils and housing associations to help them pro-actively support tenants to manage the change to UC: As part of our learning from our Pathfinder, we have already: –Introduced a standard template on which landlords can apply for an Alternative Payment Arrangement and deductions from UC –Put in place a dedicated Housing Costs team within the UC Service Centre in Bolton. –Offered a range of contact methods depending on the severity of individuals circumstances –Held a series of meetings with RSLs to address issues they were experiencing. –Data sharing with RSLs from February

16 Any Questions?