0. Welfare Reform Overview NAOFA Conference October 2016

1. Universal Credit

2. Universal Credit - overview

3. Personal Budgeting Support – Alternative Payment Arrangements
For a minority of claimants, Alternative Payment Arrangements may be required; these might include
DWP will pay housing costs directly to the landlord (managed payment to landlord)
making payments more frequent than monthly
splitting the payment within the household
Option to make managed payments directly to the landlord if a claimant reaches a certain level of rent arrears (usually 2 Calendar months / 8 weeks)
Considered on a case by case basis and assessed on their individual needs
The decision about whether an Alternative Payment Arrangement is suitable will be made by a Universal Credit Decision Maker through the Personal Budgeting Support process
All Alternative Payment Arrangements are subject to review

4. Universal Credit full service
It’s a whole service – work and benefit in one place
Being built and developed using user feedback
Being built by a team focused on the outcomes and purpose of UC
Delivery is reprioritised based on evidence and feedback

5. How Universal Credit is expanding…..
Universal Credit is now available in all 712 jobcentres across Great Britain and every local authority area: some full service (46 Jobcentres by December 2016), most live service as in Birmingham
UC roll out to full service for all claims will now be completed by March This is due to the additional work necessary for all other welfare reform changes
Nationally we will continue to roll out full service to 5 Jobcentres a month to June 2017
This expands to 30 Jobcentres in July 2017
There will be a break for Summer 2017 and then we will scale up to 55 Jobcentres amonth between October and December 2017
Then 65 Jobcentres month from February 2018 to September 2018 which will complete full service roll out for new claims
The roll out schedule naming Jobcentres and linked local authorities for 2017/18 is due to be announced by November 2016: in time to inform LA budgets for that year
The managed move of existing claims will now start in July 2019

6. Universal Credit - full service – The Story So Far Test the service
19th Aug 15
27 April 16
THORNTON HEATH,
PURLEY &
GT YARMOUTH
CANTERBURY
FULL SERVICE CENTRE
10 June 15
4TH Nov 15
LONDON BRIDGE
SE1 5
23 March 16
MUSSELBURGH
CROYDON CR0 4
26 Nov 14
SUTTON
SM5 2
18 March 15
SUTTON
EXPANSION
SM6 7 SM6 8
10 June 15
SUTTON EXPANSION
SM6 9
4th Nov 15
27 Jan 16
May 16
5 JOBCENTRE AREAS PER MONTH
CROYDON
EXPANSION
CR0 2
HOUNSLOW
Nov 14
May 15
June 15
Nov 15
Jan - April 16
May 16 onwards
Test the
service
Improve
Efficiency
Make
Scalable
Transition

8. Claimant opens account to claim UC online
Claimant opens account to claim UC online. It’s the claimants account to manage and interact with the DWP.
Support continues digitally until claimant is on a zero payment. However if their situation changes, they can report this online.
Claimant may attend claimant commitment interview dependant on workgroup. Here they will receive tailored support from a work coach.
As the claimant finds work they can report this online and still receive support as their UC entitlement decreases.
The service adapts to claimants circumstances and the coaching channel shifts with it. The more self sufficient – the more digital the interaction
A relationship is built with a mixture of face to face and digital / remote coaching using To Do’s and Journal entries. Payments are shown too.

10. Benefit Cap

11. Benefit Cap 2013
Benefit cap was introduced across Great Britain from 2013 to limit how much any one household receives in state benefits.
The underlying principle is that someone claiming benefits should be no better off than many people in work. The policy as introduced in capped :
Couples with or without children and lone parents at £26,000 a year; £500 weekly
single adults at £18,200 a year; £350 weekly

12. Benefit Cap 2016
From November 2016 the benefit cap threshold will change;
The rate for claimants living in the Greater London Boroughs and the City of London will be;
couples with or without children, or lone parents with a child, £23,000 a year; £ 442 weekly; £1,917 monthly
single adults £15,410; £296 weekly; £1,284 monthly
The rate for claimants living elsewhere in Great Britain is changing to;
couples with or without children, or lone parents with a child, £20,000 a year; £385 weekly; £1,667 monthly
single adults at £13,400; £258 weekly; £1,117 monthly

13. Benefit Cap - exemptions
Certain benefits and payments will result in exemption of households from benefit cap; these are effective under the current capping regime and will remain in place for the new cap levels.
For current benefit the benefit cap does not apply where a household is entitled to Working Tax Credit. (including an underlying entitlement) or for UC where the household earns £430 or more each month. This reflects a key aim of the policy which is to increase the incentive to work.
War widows and widowers are exempt from the cap.

14. Benefit Cap - exemptions
Any of the benefits below in payment to any member of the household, will exempt the household from the benefit cap:
Attendance allowance
Armed Forces Independence Payment
Armed Forces Compensation Scheme (AFCS) (Guaranteed Income Payments) before 6 April 2005
Carers Allowance (from November 2016)
Disability Living Allowance
Employment and Support Allowance where the support component has been awarded
Guardians Allowance (from November 2016)
Housing Benefit paid to households in “supported exempt accommodation” are disregarded from the benefit cap
Industrial Injuries Benefits (IIB)
LCWRA element of UC
Personal Independence Payment (PIP)

15. Personal Independence Payment

16. Personal Independence Payment Reassessments

17. PIP where we are up to July 2016

18. Other benefit reforms

19. Other reforms April 2016
Personal Allowance increased to £11,000 for earnings
Higher tax threshold increased to £43,000
National Living Wage set at £7.20 and hour
Social Rented Sector rents reduced by 1% per year for four years
JSA/ESA Work related Activity group and Income Support rates frozen for four years
Child Benefit rates frozen for four years
Family premium removed from Housing Benefit
Pension Credit ‘Savings Credit’ not payable on new claims (You can still apply for Savings Credit on or after 6 April 2016 if you reach State Pension age before that date.)

20. Welfare Reform changes April 2017
Personal Allowance increases to £11,200
Higher rate tax threshold increased to £43,600
New ESA Work related Activity group claimants to receive the same rate as JSA recipients
Social Tenants on incomes of above £40,000 in London and £30,000 elsewhere to pay market rents
From September 2017 Free childcare entitlement doubled from 15 to 30 hours for parents of 3 and 4 year olds.
April 2018
Support for Mortgage interest to become a loan