Scottish Universal Credit Choices

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1 Scottish Universal Credit Choices

2 Social Security in Scotland Scotland Act 2016 gives powers: over eleven benefit areas to create new benefits, and to top up reserved benefits affects some 1.4 million people, and will transfer funding of around 2.8 billion.

3 So far Scottish Ministers top priority is the safe and secure transition of eleven benefits by the end of this Parliamentary term Dignity and respect at heart of the new social security system Experience Panels Social Security Agency located in Dundee and Glasgow and strong local presence across the country First wave of benefits to be delivered by the Agency Carers Allowance Supplement (by summer 2018), and Early Years Assistance and Funeral Expense Assistance (by summer 2019) Social Security Bill currently at Stage 1- evidence from the Minister for Social Security on 2 November Royal Assent in 2018

4 Universal Credit Scotland Act 2016 Gives Scottish Ministers powers over whom and when UC is paid Gives Scottish Ministers powers over support for costs of rented accommodation Sets out requirements for Scottish Ministers to consult the Secretary of State on implementation practicalities But UC remains reserved to the UK Government, although the Scottish Government/DWP are working very closely together to implement the new Scottish UC choices

5 Scottish Universal Credit Choices The Scottish Government priority is to implement: payment of the housing costs element directly to landlords (social and private) more frequent payments to the claimant (twice monthly as opposed to monthly)

6 Scottish Universal Credit Choices Why? Aim to provide Scottish claimants with more choice in how they manage their UC account To make the changeover to the UC regime easier for individuals claiming UC in Scotland To protect tenancies and prevent homelessness To help with budgeting and reduce build-up of rent arrears

7 Scottish Universal Credit Choices Where are we now? Regulations to implement managed payment of rent to landlords and more frequent payments were laid on 29 June in the Scottish Parliament and came into force on 4 October Available to new claims in full service UC areas Eligible people will be offered the new UC choices through their UC online account Offered in the second assessment period enables DWP to offer an Alternative Payment Arrangements (APAs) and people know what is their UC award before making a choice The DWP will deliver the UC choices on behalf of the Scottish Government.

8 Scottish Flexibilities Where are we now? Information leaflets for people applying for, or in receipt of UC, is on our Scottish Government website and has been provided to libraries, third sector and local authorities to help people make an informed choice. DWP/SG has jointly provided information notes for local authorities, landlords, third sector and others. Expect between 650,000 and 700,000 households to benefit from the UC flexibilities by the end of the planned UC rollout by the UK Government in 2022.

9 Scottish Universal Credit Choices next steps Existing claimants will be offered the new Scottish choices from January 2018 working with the DWP to finalise arrangements Split payments working with stakeholders to seek views on how it could work in practice Abolishing bedroom tax at source through UC

10 Housing & Welfare Reform

11 Bedroom Tax The Scottish Government has committed to abolishing the bedroom tax using devolved powers on social security Scottish Ministers have the power to vary the under occupancy deductions, using the universal credit flexibilities

12 Mitigation 2013/ /17 DHPs run by DWP SG topped up: E.g. 2016/17 DWP provided 15.2m, SG budgeted 35m On 1 st April 2017 we took over responsibilitiy for DHPs and are providing 47m to fully mitigate the bedroom tax in 2017/18.

13 Abolition Section 29 Scotland Act 2016 (but ) Solution agreed 14 September by ministers Everyone affected by bedroom tax has UC award increased to make up the difference Benefit cap not applied to increase Legislation required Stage 2 Amendment + Regs Section 29 Regs

14 18-21 Year Olds Removal of entitlement for housing costs for those aged Stakeholder concern has been focused on the impact on individuals including concerns that some may: be led to housing crisis and homelessness by an inability to meet their rent, skip meals, resort to payday lending, or suffer other hardship in order to meet rent payments. Exemptions

15 What we are doing The Scottish Government is committed to restoring housing benefit for year olds. Despite extensive discussion with the UK Government we have, so far, been unable to agree a way forward to mitigate this policy in Scotland In the meantime we have agreed with CoSLA that we will extend the Scottish Welfare Fund (SWF), on an interim basis, to help year olds adversely affected by the UK Government s changes

16 How does it work in practice? We will use the provisions in SWF for Community Care Grant (CCGs) which enable local authorities to help people establish or maintain a settled home where, without a grant, there is a risk that they would be unable to do so. Funding Numbers Guidance You can access the standalone guidance at: elfarefund/socialfund/18to21assistancewithhousingcosts

17 Discretionary Housing Payments Responsibility for Discretionary Housing Payments was devolved to the Scottish Government on 1 April 2017, making it the first social security scheme to be devolved to Scotland following the Scotland Act The Scottish Government are providing 58 million in total to local authorities in 2017/18 for DHPs this includes 47 million to fully mitigate the bedroom tax and 10.9 million to help those affected by other areas of welfare reform. The current DWP guidance and regulations still apply.

18 DHPs and the Social Security Bill Part 4 of the Bill covers DHPs The Bill presents an opportunity to simplify the relevant regulations and recast them in a Scottish context but there will be little, if any impact on the current operation of the scheme The Bill will replace the powers in current DWP primary and secondary legislation, and substantially simplify the DHP legislation. The power to govern by regulations is replaced and provides for guidance to be published on a statutory footing, to which local authorities must have regard. There are no current plans to remove DHPs from local authority control. In the short to medium term the priority is to ensure continuity of service and that the mitigation of the bedroom tax can continue to operate effectively.

19 Contact Details Owen D. Griffiths Housing and Social Security Team Dawn Abell Low Income Benefits Unit