1. Universal Credit for “Working Age” claimants
TPAS Conference
October 2014

2. Universal Credit – Q & A
Based on what you already know about Universal Credit:
Why is it being introduced?
Which tenants are most likely to be affected?
Which tenants are not affected?
When is it likely to affect most tenants?

3. Universal Credit – Who can claim?
To claim UC the person(s) must:
be 18 or over (16 in some limited circumstances)
be under Pension Credit age
be resident in Great Britain
not be in education
have accepted a “claimant commitment”
Couples are required to make a joint claim as a couple. If one of the couple fails to meet any of the above conditions, that person will be ignored for the purposes of calculating the UC Maximum Amount - although their savings/capital, income and earnings will still be taken into account.

4. Original planned rollout?
From October 2013 to April 2014 – 500K “new claimants” were due to receive Universal Credit instead of jobseeker's allowance.
Simultaneously, another 500K existing claimants and their families were due to be transferred to UC when their family circumstances changed significantly - for instance if they got a job or had another child.
From April 2014 a further 3.5 million claimants and their families were due to move to universal credit.
And from the end of 2015 to the end of 2017 a further three million households were due to be moved over.
By million households involving 12 million claimants were due to migrate to Universal Credit

5. Latest plan - UC to be introduced?
“New claims” but only from those selected (single people under 35 in main) who would otherwise have made a new claim for JSA, starting Ashton-under- Lyne Pathfinder 29th April – Wigan, Warrington – July 2013
Pathfinders extended to 6 new areas starting October 2013 in Hammersmith & Fulham completing in Inverness & Rugby - April 2014.
Roll-out announcement relating to 12 council districts in North West of England, starting June Again restricted initially to Single claimants.
To date 13, 000 UC Claimant UK wide
DWP announced on 29th September rollout to be extended to all Jobcentres & Local authority areas, starting from February 2015.
Pathfinders & live sites suggest a host of IT difficulties being encountered. Reports suggest all earlier plans & development costs likely to be written off (£140M to as much as £420M)
Whatever the date, councils should receive 3 month warning before date of migration. RSLs, assuming their tenant is having HB paid direct, should be notified in advance as they are still a “person affected” at that stage.

6. Housing Element What rent will be covered?
For council tenants and tenants of Registered Social Landlords (including Housing Associations):
actual core rent + eligible service charges will continue to be assessed separately from other elements of UC.
From the resulting figure you must deduct a) Under-occupation penalties & Housing Contribution costs (HCC) of any Non- Dependants
At the point UC kicks in, the amount of the “UC Housing element” will be incorporated into one single payment, paid on a monthly into the claimant’s bank account, but in arrears.
If the contractual rent is charged weekly, fortnightly, 4 weekly, DWP will simply convert to monthly.

7. Housing Element
LA/RSL interfaces, currently used in annual rent increase exercise – will continue to be used, as now, for Housing Benefit purposes.
BUT not for UC purposes!
At point of claiming UC - onus on claimant to include housing costs in UC claim, produce a rent statement and tenancy agreement and notify annual rent increase in advance of April change.
Delays in claiming and reporting changes – very limited - restricted to 1 month on either backdating or revision.
Changes in circumstances will be applied on monthly “assessment period” basis producing “winners & losers”.
Penalties can also be imposed for late notification of changes in circumstances causing overpayments.

8. How will UC be claimed?
Universal Credit is designed to be 'digital by default'.
Claimants will be expected to credit/overview and then attend a face-to-face interview.
Short term – 100% of claims will be made by claimant attending the JCP office where they will be assisted by the DWP staff using various IT systems + face-to-face “claimant Commitment” interview.
Longer terms – 90% plus made online with notification/award letters to be sent electronically instead of hard copies.
“Real-time” data to be drawn from DWP and HMRC systems for new claims and UC will be updated monthly to take account of most up to date earnings.
RSL staff and Voluntary organisations to play a major part of support services.
Claimant Journey (next slide).

9. How will UC be paid?
Bank Accounts - If claimant doesn’t possess bank account DWP to determine payment facility. See
Paid monthly in arrears to one claimant for each household
Separate UC payments to non-dependant sons, daughters etc. or where payments misused.
Paid on different days of the month, determined by the initial date of claim e.g. Claim made on 1st September would be paid on 7th October covering 1st to 30th September.
Budgeting advances payment to offset shortfall at point of transfer to monthly payments. Repayable by deductions from future payments.
Universal Credit Toolkit: toolkit-for-partner-organisations
DWP, Councils and Support organisations to provide advice & assistance to those in need of help with budgeting & claiming.

10. Direct Payments to Landlord
UC default position will be to pay tenant, rather than landlord.
However, Lord Freud announced:
1. Payment of the ‘housing cost’ element could be paid from day one in “vulnerable” cases (see next slide) and would automatically be redirected to landlords when 2 months of rent arrears accrued;
2. The DWP, if alerted by the RSL, that 1 months’ cumulative arrears had built up due to housing costs not being handed over, payment of the housing costs would be suspended and a decision made as to whether payment should, at that point, be reverted to ‘Landlords’ Managed Payments’;
3. Similarly, if over an extended period of time, payments amounting to 1 months’ rent accrued as arrears, the process in 2 above could be applied;
4. Tenants could be required to repay the missing rent by way of accelerated deductions over a 6 to 9 month period, assuming they had no other ‘third party’ deductions.
5. DWP Guidance credit-and-rented-housing

11. Drug / alcohol and / or other addiction problems e.g. gambling
Tier One factors – Highly likely / probable need for alternative payment arrangements
Drug / alcohol and / or other addiction problems e.g. gambling
Learning difficulties including problems with literacy and/or numeracy
Severe / multiple debt problems
In Temporary and / or Supported accommodation
Homeless
Domestic violence / abuse
Mental Health Condition
Currently in rent arrears / threat of eviction / repossession
Claimant is young either a 16/17 year old and / or a Care leaver
Families with multiple and complex needs
Tier Two factors - Less likely / possible need for alternative payment arrangements
No bank account
Third party deductions in place (e.g. for fines, utility arrears etc)
Claimant is a Refugees / asylum seeker
History of rent arrears
Previously homeless and / or in supported accommodation
Other disability (e.g. physical disability, sensory impairment etc)
Claimant has just left prison
Claimant has just left hospital
Recently bereaved
Language skills (e.g. English not spoken as the ‘first language’).
Ex Service personnel
NEETs - Not in Education, Employment or Training

12. Landlord Managed Payments (LMPs) & Third Party Deductions
LMPs & Rent Arrears application and-rented-housing
- Proof of rent arrears which must show the balance on the rent account including the amount of rent outstanding and the amount of rent due each calendar month e.g. Rent book, rent account, letter from Landlord on letter-headed paper confirming the balance on the rent account, including a calculation of the amount of rent outstanding, and the amount of rent due each calendar month.
'- To enable the request for the managed payments to the Landlord to be linked to the correct Universal Credit claim it is advised that the National Insurance number section be completed. If the National Insurance number is not known then please provide the tenant(s) Date of Birth

13. UC Service Centre Claims Closure
UC Customer Journey – Pictorial Representation
Customer Touch Points
I receive a text message to remind me about my interview at the Jobcentre
I attend my interview in the Jobcentre and take any evidence that has been requested. I sign my printed claim and complete the Claimant Commitment (CC)
I receive my UC decision letter which includes my payment schedule if appropriate. I am also advised about my on-going responsibilities as agreed in my CC
I am asked to attend the Jobcentre
I notify the UC Service Centre if there is a change in my circumstances
I make my claim on-line. If I need help, I can telephone the Universal Credit helpline for assistance
I get information or advice about how to claim Universal Credit (UC)
I attend the Jobcentre and engage in work related activity
I receive a notification to advise me that my Universal credit entitlement has changed or ceased
I receive a telephone call inviting me to attend an interview in the Jobcentre
I send any additional missing evidence to the Mail Opening Unit (MOU)
UC Service Centre
Jobcentre
Business Process
UC Service Centre Claims Closure
UC Service Centre
Online/ UC Helpline
Jobcentre
The MOU scan the claim on to the Data Repository System (DRS). Any evidence or correspondence sent in separately by the Claimant creates a CAMLite task for the agent in the SC. On receipt of the task, the agent updates the UC Portal. Once all evidence has been verified, this triggers the processing of the UC claim
The Jobcentre print the UC claim and obtain a signature from the claimant. Any additional information is gathered and the Claimant Commitment (CC) is completed. The UC Portal is updated and the claim documents and any supporting evidence are sent to the Mail Opening Unit (MOU)
On receipt of the online UC claim, the Service Centre (SC) contact the Claimant by telephone to arrange an interview at the Jobcentre.
An SMS text message is issued to remind the claimant about their appointment
If the claimant has a change of circumstance it is reported to the Service Centre. The claimant is notified regarding any change to the award of Universal Credit
The Claimant is invited to attend the Jobcentre to undertake specific work related activity as agreed in the CC.
There is on-going interaction at the JC
Claims to Universal Credit (UC) are made on-line. If a claimant requires assistance, the Universal Credit Helpline is available.
In exceptional circumstances, claims can be made by telephone or face to face

14. Social Responses 3. Local Support Orgs 2. Agents & Appointees
…next steps will include work to estimate the contribution this support can bring to reducing volumes
3. Local Support Orgs
2. Agents & Appointees
4. Housing
1. Friends and Family
Trusted intermediaries -
Carers, POA, etc
Third sector organisations such as CAB, CPAG, Gingerbread,
MAS
Etc
Landlords
Housing Associations
Local RSL services
Supported
Accom
Hostels etc.
Uncle Joe
Carers
Other Claimants – Word of mouth
Etc
Libraries
Debts Advice Services
On line schemes
General benefit support services
One stop shops
Tell us Once
DWP, HMRC
Jobcentres
Work Programme
UC Services inc Telephony and F2F
5. Local
Authority
10. Govt.
Social Responses
Local NHS services GP
Health workers
Addiction / support schemes
Gas
Water
Electric
Etc PO
Banks & Building Societies
Credit Unions
Etc
E/Rs
Local Education services
Careers advice services
Etc
Initial focus has been on identifying the potential support networks…..
9. Utility Companies
6. Health &
Social
Care
8. Financial Orgs
7. Work & Education

15. Pensioners – Unaffected as far as UC is concerned – but!
Original plan - from October no new claims for HB - instead housing costs were to be included as part of Housing Credit in the assessment of a new all-inclusive Pension Credit for new claimants
Push-back of UC implementation has meant the DWP has had to defer “Housing Credit” development until 2017/18 at earliest.
In the meantime, the housing element will continue be paid to the landlord if that is the arrangement in place at the point of migration
Due to women's pensionable date change, numbers of those affected by Universal Credit, increasing as “pensionable age >66 by 2020

16. Universal Credit Changes - Non-dependants!
New structure for non-dependant deductions or Housing Cost Contributions as they will be called under UC.
More exempted categories avoiding charges being made
Single rate of deduction for those aged 21 and working £68.00 per month (i.e. £15.70 per week ).
No deduction for anyone unemployed under 25 years of age or in receipt of Pension Credit age
Those currently 25 and over and unemployed will experience hike to £15.70 fro £13.60
Amending regulations introduced - Under 25’s on UC to pay nothing.
NB – Non-Dep Couples are each entitled to a bedroom in the size criteria but each has to have a HCC made unless they fall into an exempt group (Blind, DLA/PIP etc.).

17. Universal Changes – Temporary Absence & Others
52 week provision dropped to 26 for most claimants
People fleeing threat/fear of domestic violence still 52 weeks
“Existing live claim” - Prisoner claims entitled to 26 weeks maximum
First-time UC claimant moving to prison – no protection.
4 week benefit run-on for those securing a job - inexplicably ends!
4 weeks overlapping provision will be restricted to those unable to move due to adaptations.

18. “Claimant Commitment”
“Claimant commitment” agreed with Job Search Coach clearly setting out what is expected of claimant. /file/254541/uc-and-your-claimant-commitment.pdf
It’s now a “condition of entitlement” so no signed agreement, no UC!
ESA recipients, capable of doing so, may be required to take part in work- related activity to help them prepare to move into work;
Lone parents whose youngest child has reached the age of 1 but under 5 will be expected to maintain contact with job market. After five he/she will need to actively seek work unless they are severely disabled or have a health condition which prevents them working, or are a carer for a disabled person; and
Couples with youngest child five or more, and where neither partner is disabled or has a health condition which prevents them working or is a carer, will need to make a joint claim to Jobseeker’s Allowance, requiring both partners to actively seek work.
Sanctions – Loss of benefit for non-compliance – 4 weeks; 13 weeks and up to 3 years.

19. Impact of “Claimant Commitment”
New rules of “Claimant Commitment” rolled out nationally. New “Help to Work” programme effective from April 2014.
1 million sanctioned between Oct12-October
Guardian video report on how the sanctions are being applied:
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Numbers expected to rise considerably as couples and dependants are affected.

20. Problems for tenants & landlords
Another period of uncertainty and worry on a number of levels
Mixture of tenants on HB/LHA or UC or Pension Credit.
Liaison difficulties with DWP “elephant in the room”
Regional Office delivery
Poorly trained staff; difficult to deal with, particularly at arms- length
Tendency to hide behind cloak of “confidentiality” and “Data Protection”
Unwillingness to accept “mandating” due to perceived “conflict of interest.
Safeguard uncertainty at present and reliance on “guidance” as opposed to regulations.
Landlords/tenants NO rights of appeal – major setback!
Will undoubtedly experience an Increase in rent arrears, and costs associated with collection and recovery etc.

21. UC Advice website information
Universal Credit Regulations associations/2013/06/universal-credit-regulations-2013
UC Briefing Note
associations/2013/08/universal-credit---advice-for-frontline-staff
UC Bulletins
associations/subsection/bulletins
UC discussion forum