Universal Credit Presentation 1 st September 2015

2 Welfare Reform Our reforms will… The Welfare Reform Act aims to introduce a simpler, fairer benefits system that helps ensure people are better off in work than on benefits. Prepare the long-term unemployed for the world of work Provide unconditional support for those who need it Ensure people receive a fairer pension and are encouraged to save for retirement Help to ensure people are better off in work than on benefits Supporting Families to stay together

3 Universal Credit is at the heart of these reforms. It aims to simplify the benefits system and help and ensure people are better off in work than on benefits while providing support for those who need it Welfare Reform

The case for change There are still too many people for whom the current welfare system doesn’t work. –Weak financial incentive in the current system –Risks to household and income due to both moving into, and potentially back out of, work Universal Credit has been introduced to tackle the structural problems which persist in the legacy welfare system. By creating a single system for those in and out of work, Universal Credit ensures that work pays and more work pays for everyone. –Flexibility – rules allow to resume claims easily should circumstances change within 6 months of initially moving off Universal Credit. –Simplicity – Universal Credit removes requirement to provide similar information to different organisations. (HMRC, LA’s and DWP)

Simplifying the benefits system The legacy welfare system is complex in its structure, administration and how the different qualifying conditions interact with each other. To simplify the legacy benefit system DWP has: –Created a new legislative framework. –Implemented a single system of means tested support. Universal Credit provides a new single system of means-tested support for working-age households who are in or out of work. All elements are assess in a single claim which removes the need to claim different means-tested benefits from different agencies..

6 Universal Credit - it’s all about work Universal Credit aims to reward work. No 16 hour rule and no limits on the number of hours someone can work. The Universal Credit payment only reduces gradually as their take home pay increases so claimants won’t lose all their benefits at once if they are on a low income Universal Credit will encourage a new type of relationship with claimants. Work Coaches will help claimants to become more independent by supporting them in their worksearch activities. They will help claimants plan and focus their jobsearch as well as set them actions that give them the best chance of finding work Universal Credit aims to support jobseekers through the Claimant Commitment to raise their expectations of what they can achieve, and to encourage responsibility. Those who are fit and ready for work will be expected to look for a job on a full time basis dependent on circumstances Universal Credit claimants are expected to use Universal Jobmatch, an intelligent job matching service that helps employers to get the best fit for the jobs that they have on offer

7 Delivering the policy - how Universal Credit is rolling out to eligible claimants Universal Credit rolled out in Somerset during March and April It rolled-out across Cornwall during May, June and July Universal Credit will role out across Greater Devon on 9 th of November It will role out across Torbay and Plymouth on 25 th of January 2016.

8 Universal Credit is rolling out to eligible claimants Initially new claims can be made if the customer is single, aged 18 to 60yrs 6mths and are available for work. They must be a GB National normally resident in GB, have a National Insurance Number and a suitable Bank, Building Society or Credit Union account. Includes customers who are responsible to pay rent, except those in Supported Accommodation. Other exceptions apply, full details available on Gov.uk

What’s different about Universal Credit? IT ENCOURAGES 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)

10 Universal Credit helps people be better off in work than on benefits by: Introducing a generally more generous work allowance Removing the limit to the number of hours someone can work each week Reducing a claimant’s Universal Credit payment gradually as their earnings increase, so they won’t lose all their benefits at once if they’re on a low income Working families on Universal Credit can claim up to 70% of actual childcare costs up to a monthly cap and from 2016 this will be increased to 85%. In 2016, this will equate to a maximum monthly amount of £646 for one child and £1,108 for two or more children Better off in work

Universal Credit – one year on

12 Local Area Support for claimants with complex needs Budgeting Work Online Housing Support for claimants LA Services National Partners Local Partners Jobcentre Plus

Alternative Payment Arrangements Financial products Money advice Claimants managing their money Personal Budgeting Support - Overview

REQUIREMENT FOR A PERSONAL BUDGETING STRATEGY IS DRIVEN BY THESE CHANGES Personal Budgeting Support - Context Housing costs direct to tenant Single payment to household Monthly Payment We want to help people to be able to manage their own finances successfully, whether they are in or out of work

15 Your role Partner Claimant DWP INFORMATION ABOUT UNIVERSAL CREDIT GOV.UK Claimant Leaflet Videos Partner Toolkit Infographics

Useful links for stakeholders An introduction to Universal Credit video Universal Credit pages on GOV.UK A toolkit for Partners Budgeting help and support Operating Guidance for Personal Budgeting Support & Alternative Payment Arrangements rsonal-budgeting-support-cover-note.pdf rsonal-budgeting-support-cover-note.pdf

Useful links for stakeholders The Money Advice Service A Money Advice Service Universal Credit video A quick guide for employers about Universal Credit and RTI claimants-quick-guide HMRC and RTI Eight Ways Universal Credit can help your business w-uc-can-help-your-business.pdf