Islington Welfare Reform Event 16 th January 2013

2 Department for Work & Pensions Universal Credit Universal Credit will help claimants and their families to become more independent and will simplify the benefits system by bringing together a range of working-age benefits into a single streamlined payment. The new Universal Credit system aims to: Improve work incentives Smooth the transitions into and out of work, supporting a dynamic labour market Simplify the system, making it easier for people to understand, and easier to administer Reduce in-work poverty Cut back on fraud and error.

3 Department for Work & Pensions What’s different about Universal Credit? The main differences are: Universal Credit will be available to people who are in work and on a low income, as well as to those who are out of work Most people will apply online and manage their claim through an online account Universal Credit will be responsive, as people on low incomes move in and out of work, they’ll get ongoing support – giving people more incentive to work for any period of time that is available Most claimants on low incomes will still be paid Universal Credit when they first start a new job or increase their part-time hours Claimants will receive just one monthly payment, paid into a bank account in the same way as a monthly salary Support with housing costs will go direct to the claimant as part of their monthly payment. Universal Credit

4 Department for Work & Pensions Universal Credit will replace: Jobseeker’s Allowance Employment and Support Allowance Income Support Child Tax Credits Working Tax Credits Housing Benefit. Universal Credit will go live nationally in October However, from April 2013 a Universal Credit ‘Pathfinder’ programme will take place in Tameside, Oldham, Wigan and Warrington The findings from the Pathfinder will be used to make changes (where necessary) to ensure the new service is robust and reliable when Universal Credit goes live nationally in October Frequently Asked Questions Universal Credit

5 Department for Work & Pensions Universal Credit - Key Dates APRIL 2013 OCT 2013 APRIL Pathfinder Go-Live New claims from unemployed claimants start New claims from in-work claimants start Managed migrations start Managed migration activity completed

6 Department for Work & Pensions Benefit Sanctions There are 3 levels of JSA Sanctions for people who fail to comply with the conditions for claiming JSA. These are: Lower level sanctions These are applied when claimants fail to comply with a requirement to improve their chances of finding or preparing for work for example fail for no good reason to attend an advisory interview. These failures will lead to claimants losing all their JSA for a fixed period of four weeks for a first failure, followed by 13 weeks for any second or subsequent failure within a 52 week period of their last failure. Intermediate level sanctions These sanctions are applied following a period of disallowance for not actively seeking employment or not being available for work. The period of disallowance may be followed by a sanction for a maximum of four weeks for a first failure, rising to up to 13 weeks for second or subsequent failure within a 52 week period of their last failure. Higher level sanctions These will apply when claimants fail to comply with the most important jobseeking requirements, for example failing to accept a suitable job. These failures will lead to claimants losing all of their JSA for a fixed period of 13 weeks for a first failure, rising to 26 weeks for a second failure and 156 weeks for third and subsequent failure within a 52 week period of their last failure. Access to hardship provision will be available to all claimants who have had their JSA stopped

7 Department for Work & Pensions Benefit Sanctions There are new sanctions for Employment and Support Allowance (ESA) claimants who are in the Work Related Activity Group (WRAG) Letters sent to all ESA (WRAG) claimants who could potentially be affected by the changes. The letters include details of a helpline they can use if they need more information about the changes. This regime will strengthen, and make clear to claimants, the link between them receiving benefit and the requirement to do everything reasonable to find or prepare for work. ESA claimants may be sanctioned if they do not: Attend or take part in a Work Focused Interview Carry out prescribed work-related activity. Claimants who fail to carry out these activities could lose the Personal Allowance component of their ESA until they comply with requirements, followed by a fixed period sanction of one, two or four weeks. The ESA Work Related Activity component will be unaffected during the sanction.

8 Department for Work & Pensions From April 2013 Community Care Grants and Crisis Loans will be abolished with funding transferred to local authorities to introduce new Local Welfare Provision. Social Fund Reform Benefit Cap We are supporting claimants affected by the Benefit Cap by working closely with Islington colleagues We are also supporting this group back into work by offering training through our contractors

9 Department for Work & Pensions We have been working closely with Islington Working for Parents to help parents into work We are doing this under the joint Parental Employment Partnership which delivers a holistic service to support parental journey to work. Help for Families IB Re-assessment By Feb 2012, 2360 local residents had attended IB Re-assessment The results are: Fit for Work40% Work Related Activity Group29% Support Group31% Next set of figures will be available in February

10 Department for Work & Pensions Contact details Highgate Jobcentre Francess Alexander-Reynolds – Customer Service Operations Manager (CSOM) – Barnsbury Jobcentre Andrea Barnatt – CSOM – Finsbury Park Jobcentre Marian Keane – CSOM – Borough Relationship Manager Sukhpal Grewal – DWP Touchbase e-zine