1. Stockton & District Advice & Information Service
Universal Credit
A Technical Briefing
Stockton & District Advice & Information Service

2. What is Universal Credit?
means-tested benefit
dependent upon income and savings
designed to replace most working age benefits ( “Legacy Benefits”)
designed to make work pay 2

3. Stockton is a full service area from April 2018
6 means tested benefits
Universal Credit replaces 6 ‘means-tested’ benefits with 1 monthly payment
If you’re in a ‘full service’ area, everyone who currently applies for any of these will need to apply for Universal Credit instead
Stockton is a full service area from April 2018
Income-based Jobseeker's Allowance (JSA)
Income-based Employment Support Allowance (ESA)
Housing benefit (HB)
Income Support (IS)
Child Tax Credits (CTC)
Working Tax Credits (WTC)
Universal Credit
Suggested speaker notes:
Universal Credit replaces 6 means tested benefits and brings them into one payment. One of the big differences we will see when we get the new full service is more people will be applying for Universal Credit than previously.
This is because, once we get full service, almost all people making a new claim for one of these benefits will have to apply for Universal Credit instead. There are some exceptions to this, so please do check
Those who are currently claiming one of these 6 benefits are likely to be moved onto Universal Credit from 2019 onwards and don’t need to do anything until the Department for Work and Pensions (DWP) gets in toUniversal Credith.
However, If a person's circumstances change before then, for example they get a job, become unemployed or move home, they might have to make a claim for Universal Credit instead. Again, please do check this.
Don’t forget that some people can get some other benefits at the same time as Universal Credit, for example Council Tax RedUniversal Credittion or Personal Independence Payments.
Useful advice pages:
Adviceguide: What is Universal Credit?
Adviceguide: Check if you're eligible for Universal Credit

4. What benefits does Universal Credit NOT replace?
Personal Independent Payment (Disability Living Allowance)
Attendance Allowance
Carers Allowance
Council Tax Support
Child Benefit
Statutory Sick Pay, Statutory Maternity Payment
Contribution based JSA & ESA 4

5. Housing element - for renters / owner occupiers
Standard allowance
The payment is made up of a basic ‘standard allowance’ and extra payments that might apply depending on someone’s circumstances
This is then means tested against any earnings or capital the client has
Limited capability for work element - if a Work Capability Assessment decides someone’s physical or mental health limits their ability to work
Child element - for people responsible for a child or qualifying young person
Disabled child addition - an addition to the child element for any children in receipt of DLA or PIP
Childcare element - for people who are in work and pay for registered childcare
Carer element - for people caring for a severely disabled person for at least 35 hours a week
Housing element - for renters / owner occupiers
Suggested speaker notes:
Universal Credit is made up of a standard allowance and additional elements people might be entitled to depending on their circumstances. Many of these elements weren’t applicable to a typical claimant in the old version of Universal Credit, so it may be worth familiarising yourself with what these all are.
Added together these make a ‘maximum amount’ which is then means tested against earnings or capital. What counts as earnings and capital and how it is treated varies, so please do make sure to check this.
Don’t forget that some people are entitled to a work allowance, depending on their circumstances. This is the amount someone can earn while on Universal Credit, before the benefit starts to be withdrawn. This will vary depending on whether they receive help with housing costs as part of their Universal Credit claim.
Useful advice pages:
AdviserNet: Calculate your maxium amount

6. How is UC different? Suggested speaker notes:
Most other benefits
Full service Universal Credit
When do you receive payments?
Paid fortnightly
Paid monthly
How do you make your claim?
Claims could often be made over the phone or on a paper form
Everything is done online as standard
How do you manage your claim?
Changes to a claim or payment could often be made over the phone or through a letter
Who is it paid to?
Normally paid to individuals
Paid to households - so a couple gets a single payment (although they apply separately)
Who receives housing benefit payments?
Housing benefit is paid directly to the landlord
Housing benefit is included in the payment - claimants need to pay this to the landlord themselves
Suggested speaker notes:
There are lots of other ways full service Universal Credit is different to other benefits.
One of the big changes between the old version of Universal Credit we had and the version we are getting is that more is digital and based online.
This means clients will be asked to verify their identity online as part of their claim and will be asked to manage their claim online too. Clients will have an online account where they'll be able to see payments and ask questions about their claim.
If a client is with you, you can post questions in their journal with them as an alternative to ringing the helpline.

7. Universal Credit – Basic Conditions
aged 18 or over
(some 16/17 year olds can get Universal Credit)
not receiving education
satisfy residence tests
accepted Claimant Commitment
meet financial conditions
- income not too high
- savings over £16k = no UC
- if savings between £6k – £16k tariff income applied
- tariff income £4.35pcm on every £250 7

8. Universal Credit – Stockton
“Full Service” area in April 2018
No new claims for legacy benefits
Must claim UC instead 8

9. Universal Credit – Stockton
People receiving “legacy benefit” will continue to receive it until they are transferred (“migrated”) to Universal Credit.
Two types of Migration:
Managed Migration
Natural Migration 9

10. Universal Credit – Stockton
Migration
Managed Migration – when DWP moves a client from legacy benefits to Universal Credit
Natural Migration – where client has change in circumstances and has to make new benefit claim
A key feature of Managed Migration is clients will get “transitional protection” – should not be worse off due to being moved on to UC.
Clients who come under Natural Migration will not get “transitional protection”. 10

11. Managed Migration due to start 2019
Many people will Naturally Migrate due to change in circumstances 11

12. Universal Credit – The Claim12

13. Universal Credit – After the Claim
normal assessment period is one calendar month
paid on same date of each month
paid monthly in arrears
Paid into a bank account
on-going assessment and adjustment.
Changes in circumstances during assessment period
can affect next Universal Credit Payment 13

14. Universal Credit – The Claim
Advance Payments
- early payment of part of Universal Credit award
- loan to be repaid over months
- repayments at maximum of 40% of standard
allowance
- can be requested at any time
- after first payment of Universal Credit, must be due
to change in circumstances 14

15. Universal Credit – Alternative Payment Arrangements
money for rent paid direct to landlord
Universal Credit weekly or fortnightly
payment to two accounts instead of one 15

16. Alternative Payment Arrangements (APA)
APA can be considered if client:
Cannot manage the usual payment arrangement
Risk of financial harm to client or family considered on individual basis
High likely need – addiction problems
- severe debt
- mental health condition
- rent arrears/threat of eviction
- domestic violence
- family with multiple and complex needs
Discretionary and no right of appeal 16

17. Claimant Committment Must be accepted to get Universal Credit
Must be adhered to for ongoing UC entitlement
List of what claimant must do;
- work related requirements
- what actions must be done and by when
- how to report changes in circumstances
- information on sanctions
Can be changed by DWP
Updated regularly

18. Work related requirements
Depend on circumstances
May have to;
- look for work ( be available and searching for work)
- prepare for work
- attend work-focussed interviews
- do none of the above
Work coach to help claimants set and meet work related requirements

19. Universal Credit – The Issues
Stockton & District Advice & Information Service

20. Universal Credit – The Issues
Evidence from:-
National CAB research from 18 Full Service areas
Thirteen
Stockton & District Advice & Information Service

21. Universal Credit – The Issues
Claiming
Waiting period
Budgeting
On-going claim management
Debt

22. Claiming Universal Credit
Access to computer
Support to use computer
Support to make claim
Evidence to support claim
Need to claim other benefits

23. Claiming Universal Credit
National CAB Research:-
52% found online application ‘difficult’
30% made 10 + calls to helpline
57% reported difficulty with evidence verification
Delays in claim mean delays in payment

24. Waiting period Time from claim to first payment:-
61% - 6 weeks or less
28% - between 7 to 10 weeks
11% - over 10 weeks

25. Waiting Period
How UC clients are managing financially during the 6 week wait (NACAB Survey)

26. Budgeting
Not used to budgeting monthly
45% UC clients previously in work paid monthly
Not used to paying landlord
Fluctuating wages + UC/wages misalignment

27. Misalignment of UC & Wages
Budgeting
Misalignment of UC & Wages

28. Budgeting – Alternative payment arrangements

29. Budgeting – Alternative payment arrangements

30. On-going claim management
Access to on-line journal
- 14% people have no home internet access
- 45% UC clients had difficulty accessing or
using internet
If claim is not managed
- risk of sanctions
- increased risk of debt

31. Debt Hartlepool/Thirteen Average debt per UC customer - £791
Average debt per non UC customer - £470
Average ‘increase’ in debt since UC claim -£200

32. Debt
National CABx;
- UC clients more likely to have debt problems than people on
legacy benefit
26% UC clients needed help with debt
19% legacy benefit clients needed help
- UC clients more likely to have priority debts
47% UC clients had rent arrears
30% of legacy clients had rent arrears

33. Universal Credit – The Claim33

34. What is happening now Briefings to locality forums at VCSE
Briefings to Crisis Support agencies
Information sheets – Applying for Universal Credit; UC Jargon
Conference – February – Thirteen and Infinity
Multi-agency preparatory work