Getting Ready for UC. The impact on Citizens Advice Bureaux clients in Scotland. by Rhiannon Sims Policy Officer

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1 Getting Ready for UC The impact on Citizens Advice Bureaux clients in Scotland by Rhiannon Sims Policy Officer

2 Overview > CAS policy priorities > Statistics impact of Full Service > Impact on incomes East Lothian research > Challenges faced by clients > Top tips for supporting tenants

3 UC Rollout in Scotland Live Service Universal Credit is available in every Local Authority in Scotland. Full Service is currently available in 7 Local Authorities. The schedule is as follows: > East Ayrshire and South Lanarkshire Oct 2017 > Angus, Dundee, North Ayrshire Nov 2017 > Fife Dec 2017 > Dunfries, South Ayrshire and West Lothian Feb 2018 > Continues to September 2018 (Glasgow last)

4 CAS recommends > The accelerated rollout of Universal Credit should be halted so that serious design and delivery issues can be fixed. > The seven waiting days at the start of a Universal Credit claim should be abolished. > A single, additional, non-refundable Assessment Payment is made to new Universal Credit claimants to avoid hardship being caused by having no income for six weeks. > The Universal Credit Helplines should be 0800 Freephone numbers. > Jobcentres must ensure that the support provided to those who lack digital skills is appropriate and that alternatives are provided for those who may never be able to use digital services due to illiteracy, disabilities or other complex needs.

5 Universal Credit advice need 2016/17 New issues Employment and Support Allowance 39,527 PIP (Daily living) 35,064 PIP (Mobility) 29,538 Housing Benefit 21,598 Council Tax arrears 12,130 Charities (mainly food banks) 12,091 Child Tax Credits 12,090 Regulated Fuel, gas and electricity 11,613 Working Tax Credits 11,210 Jobseekers Allowance 10,754 Advice provided in relation to all UC legacy benefits makes up 43% of all benefits advice. When we factor in the increase in advice need that we tend to see when a new benefit introduced, we can expect Universal Credit issues to make up at least 50% of new benefits issues brought to CAB in 2018/19.

6 Statistics impact of Full Service CAS carried out an analysis to see where the biggest increases in advice has been for CAB in UC Full Service areas between 2015/16 and 2016/17. > East Dunbartonshire CAB saw 175 more issues relating to Crisis Grants, an increase of 145% in advice regarding Crisis Grants. > Haddington CAB saw 34 new issues relating to Local Authority rent arrears, a 60% increase. > Inverness advised on 129 more issues relating to food banks, an increase of 70%, and Nairn advised on 47 more issues, an increase of 40% on the previous year.

7 Statistics impact of Full Service > Between Q1 and Q4, Full Service areas saw 113 more issues related to credit card debt difficulty making payments, whilst Live Service (i.e. the rest of Scotland) areas saw 297 fewer issues related to this. > During the same period, Full Service areas saw 76 more issues related to Unsecured personal loan debts difficulty making payments, whilst the rest of Scotland saw 369 fewer issues related to this. > Full Service areas also saw 35 more issues related to gas and electricity debts difficulty making payments, while the rest of Scotland saw 55 fewer issues related to this.

8 Changes in advice need, Full Service UC areas compared to Live Service UC areas, between Q1 and Q4 2016/17 Rank Number shift (Q1 to Q4) Credit, store and charge card debts difficulty making payments Unsecured personal loan debts (except payday loans) difficulty making payments All Scotland Live Service Areas Full Service Areas All Scotland Live Service Areas Full Service Areas Gas and electricity debts difficulty making payments Pensions contract terms and conditions LA rent arrears difficulty making payments Payday loan debts difficulty making payments Store and charge card debts enforcement action Telephones landlines [1] Issues were ranked based on the number of instances of advice provided on a particular issue: an issue was ranked 1 if it was the most common advice sought.

9 Impact on Incomes East Lothian research East Lothian was the first Scottish local authority to implement full service Universal Credit. At the end of January 2017 East Lothian CAB conducted a two week snap shot survey of all clients enabling them to calculate their benefit entitlements under the new Universal Credit benefit system and the six legacy, working age benefits that it replaces.

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12 Challenges faced by clients: the six week wait The seven waiting days and subsequent five week wait is causing significant detriment to some clients. One adviser from Dalkeith CAB said: It is often taking 6-8 weeks for clients to receive an initial payment. Clients are not advised that they can request an advance or how to do this, even if they do it is discretionary and has to be paid back within three months. There has therefore been an increase in Scottish Welfare Fund applications and food bank referrals.

13 Case extract:

14 Challenges faced by clients: digital access Evidence from CAB in Full Service areas has revealed teething problems with the online journal and highlighted cases where clients are not IT literate and are unable to maintain online claims without substantial support. > Digital access and skills > Issues relating to setting up accounts > Loss of usernames and passwords > Issues with couple s claims > Uploading documents on the Online Journal

15 CAB client survey data 2013, 2015 and 2017: Could you complete a form online, such as a benefits application?

16 Challenges faced by clients: implicit consent Due to the amount of data available on the digital service, clients must now provide explicit consent to have a representative access specific information relating to their claim. CAB have raised concerns about how this will affect their ability to carry out case work in the absence of their clients. One adviser commented: This will make life difficult for CAB personnel who have been contacted by phone by a client who has a problem that s/he has been unable to resolve. To have to ask them to come to the CAB just to confirm that it is OK to speak to CAB member - especially if the client has already signed a mandate - is unreasonable.

17 Case extract:

18 Top tips for supporting tenants > Clients must be sure to enter the correct details of their rent liability, otherwise at risk of a delay in the payment of their housing element. > Access to the Landlord Portal. > Good relationships with DWP partnership managers. > Welfare rights advice available where clients are accessing public computers, such as libraries.

19 Contact details Rhiannon Sims Policy Officer Citizens Advice Scotland Phone: