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1 Payment Timescales 1

2 Universal Credit Payment Timeline UC Assessment Period = 1 Calendar Month + 7 days Payment is calculated Nb: Any changes in or earnings received during the assessment period will be taken into account. 01/10 New Claim to Universal Credit 31/10 End of 1 st Assessment Period 7/11 1 st Payment of Universal Credit is received. 2 nd UC Assessment Period = 1 Calendar Month + 7 days Payment is calculated 01/11 Start of 2 nd Assessment Period 30/11 End of 2 nd UC Assessment Period 7/12 2 nd UC payment is received. 2

3 Support for the change to UC Full Service. 3

4 Advances - New Claims to Universal Credit In order to support with the change to Monthly payments, Universal Credit Advances are available in order to provide claimants who can t manage until they receive their payment of Universal Credit with access to interest-free payments in the period up to their first full payment. New Claim Advance: As of 3 rd January 2018, this is up to 100% of the customers indicative UC award. The claimant can apply at any point during their first assessment period up until 3 days before the end of their assessment period. The advance would be recoverable over a maximum 12 month period deducted from the 1 st Universal Credit Payment. For example, a 500 Advance would be repaid at over 12 months. The advance will be paid within 5 days of it being requested. However, if the need is urgent the payment can be made by Faster Electronic Payment (FEP), which means the payment should be in the account the same day. They do not need to have signed their Claimant Commitment prior to applying for an advance. They will also be offered Personal Budgeting Support where appropriate. Claimants can apply for a Universal Credit Advance by phoning the Service Centre on:

5 Advances while claiming Universal Credit Change of Circumstances Advance: This can be paid where the claimant has a change in circumstances that will increase their UC award. For example, the birth of a child. The advance can be for up to 50% of the increase to the award eg: 50% of the additional element for a new child joining the household. They will have to provide verification of the change in circumstances in order to request the advance. The customer can apply at any point up to 3 days before the end of their assessment period. The advance would be repayable over a 6 month period from the 1 st UC Payment following the change. Benefit Transfer Advance: Where a customer has been in receipt of a qualifying, Income Based Benefit within the month prior to claiming Universal Credit, they can apply for a benefit transfer advance. The customer must apply to the service centre, however, this can be done at any point during the 1st assessment period. The advance would be repayable over a 12 month period, deducted from the 1st UC Payment following the transfer. The advance will be for up to 50% of the indicative UC award. Claimants can apply for a Universal Credit Advance by phoning the Service Centre on:

6 Budgeting Advances Budgeting Advances: These advances are designed to provide valuable access to an interest-free payment for irregular expenses, or one off items, such as: o Items linked to obtaining or retaining employment such as work clothes, tools, travelling expenses and childcare costs o Buying essential household items such as furniture, cot, pram, appliances, clothing and footwear o Help with rent in advance or removal expenses to secure new accommodation o Improvement, maintenance and security of their home. Repayments would be made over a 12 month period. (18 months in exceptional circumstances) Eligibility: Unlike other Advance types, budgeting advances are only available under certain circumstances: The customer must have been in receipt of a qualifying benefit for a minimum of 6 months. Only 1 budgeting Advance is allowed at any 1 time per household. The request must be for a minimum of 100, and the maximum allowance would be: 348 single person 464 for a couple 812 where there are dependant children There may be an exception to 6 months eligibility where the money is required to start / remain in work. 6

7 Budgeting & Digital Support Universal Support Universal Credit has made funding available to Local Authorities to put in place Universal Support as we transition to Universal Credit. We are also engaging with our Local Partners and Providers to support with this and help to prepare our customers for the culture change Universal Credit will bring. This support falls into 2 areas: Assisted Digital Support which will support the claimants to complete the online new claim data gather and to manage UC and carry out transactions via the online UC account Personal Budgeting Support which will support claimants to develop financial capability, and develop the skills to make the same sorts of financial decisions as those in work. taking responsibility for their own financial affairs. Claimants who cannot and will never be able to self-serve on-line and do not have a formal representative should contact the DWP service centre so that they can be supported. 7

8 Assisted Digital Support Universal Credit full service is delivered predominantly through online selfservice, requiring the claimant to make their claim and manage enquiries and change of circumstance via their on-line UC account. In order to support our customer to prepare for the change, we have already begun to change the culture in our Jobcentres, and the way our Work Coaches interact with their customers: Our Work Coaches have been up skilling on their own IT capability over the last year so that they are able to support their customers in developing their own skills and abilities. Customer have been encouraged to bring their own digital devices in to the job centre as well as use the Public access PC s as part of their Work Coach interview. We have encouraged and supported current claimants to register with gov.uk verify so that ID verification can be done online should their make a future migration to UC. We have also worked with our Partners and Providers who have supported us by incorporating digital capability and understanding as a key element of their current provisions. We have engaged our Local Authority to develop a strong support mechanism for those who will need a more intensive Digital Support in order to make and manage their Universal Credit Claims. 8

9 Provision Overview: Digital Support Overview: Making a claim for UC Support to transact with UC using a Computer or specific device. Security awareness: to ensure claimant keeps log-in credentials safe. Setting up a personal address, if claimant doesn t already have one. Ensuring claimants are able to access their account to retrieve the verification code for a new UC claim.. Ensure the claimant has a suitable phone number. Ensure the claimant is aware of the details they need to have to hand to (safely) complete their identity verification and claim UC. Support to complete on-line claim data gather Understand how to access the Partner code and requirement for their partner to complete their on-line claim for couples. Maintaining a claim Support to manage UC via the online UC account on whatever device they have access to. Support to manage their own account on whatever device they have access to Navigate and clear to do s. Make journal entries. Upload documents including eg: CV s or medical evidence. Notify change of circumstances Generate and make enquiries. 9

10 Personal Budgeting Support Personal Budgeting Support (PBS) is about helping claimants adapt to 3 key changes: a single household payment being paid monthly and rent paid directly to the claimant instead of to the Landlord (where an APA is not in place) All customers can access the Universal Credit Personal Planner available online which will help them to identify any changes they may need to make in order to manage their Universal Credit. Customers who need some support, but are digitally capable and are not vulnerable may be directed to the Money Advice Service and their online Budgeting support Tool via Those with a more complex need for money advice will be referred to the Local Authority to ensure they receive a more in depth support. This will be done face to face where possible, and the customer can be supported in understanding their budgets, and setting up any necessary alternative payment arrangements. We are also working towards engaging with further organisations such as Citizens Advice, Credit Unions and Charity organisations in order to try and provide a range of readily available support to ensure the right provision is available for each customer. 10

11 Alternative Payment Arrangements In order to support some claimants to manage their finances effectively, and to ensure the safeguarding of tenancies, alternative payment arrangements may be required. These could be: Paying the housing element directly to the landlord known as a Managed payment Making more frequent than monthly payments Splitting the payment between partners where there may be misuse of UC awards within the household. The decision to put into place an Alternative Payment Arrangement will be made by the service centre taking into account each customers individual circumstances / risk factors. It will be reviewed at a maximum time of 24 months following its award date. 11

12 What factors are considered for an APA? Factors to consider for alternative payment arrangements Tier One factors Highly likely / probable need for alternative payment arrangements 1.1 Drug / alcohol and / or other addiction problems e.g. gambling 1.2 Learning difficulties including problems with literacy and/or numeracy 1.3 Severe / multiple debt problems 1.4 In Temporary and / or Supported accommodation 1.5 Homeless 1.6 Domestic violence / abuse 1.7 Mental Health Condition 1.8 Currently in rent arrears / threat of eviction / repossession 1.9 Claimant is young either a 16/17 year old and / or a Care leaver 1.10 Families with multiple and complex needs Tier Two factors - Less likely / possible need for alternative payment arrangements 2.1 Third party deductions in place (e.g. for fines, utility arrears etc) 2.2 Claimant is a Refugees / asylum seeker 2.3 History of rent arrears 2.4 Previously homeless and / or in supported accommodation 2.5 Other disability (e.g. physical disability, sensory impairment etc) 2.6 Claimant has just left prison 2.7 Claimant has just left hospital 2.8 Recently bereaved 2.9 Language skills (e.g. English not spoken as the first language ) Ex Service personnel 2.11 NEETs - Not in Education, Employment or Training 12

13 Complex Needs Every Site has developed a comprehensive complex needs plan, and we are continuing to build and develop these plans to incorporate as many partner organizations as possible to ensure a holistic support network is readily available for our most vulnerable customers. Each site has dedicated Single Points of Contact for different Specialist need areas including: o Disability ands Mental Health o Homelessness o Drugs & Alcohol o Care Leavers o Financial & Digital Inclusion o Carers o Domestic Abuse o Bereavement o Refugees / Asylum Seekers We are working to share these contacts with our equivalent specialist partner organizations and develop a stronger communications network while sharing knowledge to up skill our work force and develop our partner organization's understanding of DWP support. We are also developing practices to provide a more joined up approach to supporting vulnerable customers, for example: o Encouraging support workers to attend appointments alongside the vulnerable person. o Encouraging the customer to be open with their Work Coach so that we are able to access the appropriate support for each individual. o Being fully aware of the range of provision available across the area. 13

14 DWP Visiting Support For those customers who require additional support to that offered within our Jobcentres, and provider networks, our DWP Visiting team provide a vital support to our most vulnerable customers. Lynn Shaw Visiting Team Leader. (Lincolnshire). 14

15 Community Partners DWP has also taken on a team of Community Partners who will support with: Developing and enhancing the support available to people with health conditions or disabilities to help them move closer to employment. Work within the community to support with understanding for employers, partners and DWP staff. Engage with Partner Organisations and local employers to develop opportunities for claimants with a health condition or disability. Lead Community Partner for Lincolnshire, Nottinghamshire & Rutland: Stephen Cooper 15

16 Supporting Vulnerable Customers & Disclosure Universal Credit gives the claimant access to all of their data in their own hands via their secure online account. If claimants feel unable to find the relevant information or understand more complex issues, they may ask a third party to contact DWP on their behalf. The claimant will need to provide explicit consent so that this information can be disclosed to a representative. This can be done using the most appropriate channel in their circumstances, whether that is through the journal, the telephone or face to face. The claimant will need to state: o that they give consent for their personal information to be disclosed o what information they want to be disclosed o why the information is needed o the name of the third party representative / organisation who they want to handle the issue on their behalf. Explicit consent will not last indefinitely & will cease when the specific query is resolved. The claimant should provide explicit consent for each new query raised.. 16

17 Housing 17

18 Housing Benefit Transitional Payments: From 11 April 2018, a two week Transition to UC Housing Payment will be awarded to HB claimants who naturally migrate to UC. This means they will be awarded an additional 2 weeks Housing Benefit entitlement from the date of their Universal Credit claim. The payment is not repayable. Where the claimant has moved to a new address as part of the trigger to a new claim, the payment will be made directly to them, and not to a previous Landlord. Exceptions: UC claimants who are no longer living in temporary or specified accommodation and their Housing Costs are transferring in their UC entitlement. 18

19 Full Service Housing Cost Verification Process Map Social Service centre agent s housing costs verification form (HCV) to landlord Is the Claimant a social or private tenant? Private Claimant asked to bring in housing costs documents at ID interview HCV received from landlord? Yes No We will see some changes to the Social Rented Sector process with the introduction of the Landlord Portal which is currently being rolled out. Reminder sent to social landlord or information requested from claimant if a private tenant. If housing costs remain unverified at end of assessment period then the housing cost will not be paid No Yes Housing costs verified? Info checked against claimant declaration, amended if required and uploaded to claim Documents uploaded to claim 19

20 Verification of Social Rented Housing Costs: For Social Rental Sector, the evidence will be obtained directly from the Social Landlord, and include: name of all tenants on the tenancy agreement property address including full postcode current rent and frequency (for example. monthly, weekly) breakdown of rent type, frequency and amount of each service charge number of bedrooms landlord/agent details (name, address) rent free weeks (where applicable) if the tenant(s) are living in temporary accommodation

21 Verification of Private Rented Housing Costs: For Private Rental Sector, the evidence will be obtained from the Clamant, and must be verified at a face to face interview at the jobcentre: Evidence must include proof that the claimant is: legally responsible for paying rent living in the property. paying rent. Claimants may provide evidence via a combination of: A tenancy agreement or letter from the landlord (including details of any joint tenancies.) Utility bill, telephone bill or medical card to show occupancy. Bank statement showing payments to a landlord (a tenancy agreement can t be used as proof of paying rent) These are examples of evidence, not a complete list. If a new tenant only has a tenancy agreement as evidence they may obtain a supporting letter from their landlord as further evidence - for example to confirm that they are living in the property or have paid a deposit where utility bills etc are not available.

22 Managed Payment of Housing Costs to Landlords In order to ensure our more vulnerable customers are supported, there are some additional support mechanisms surrounding Managed Payments to Landlords: Managed payments can be requested by landlords as well as claimants, and where they are requested by a Trusted Partner Social Landlord, this recommendation will be taken by DWP. Where a claimant in Private Rented Accommodation has previously had their rent paid under Housing Benefit as a direct payment, this will be offered to them at the point of their new claim where this is appropriate. (From December 2017) Vulnerable groups such as Care Leavers, will be offered these arrangements from Day 1 of their claim where they are appropriate. Tier 1 and Tier 2 factors will apply when considering a Managed Payment request. Additional Factors considered for Managed payments of rent: When a claimant has accumulated one month's rent arrears due to persistent underpayment, we will review the financial support they need and, if requested by the claimant or landlord, will consider making managed payments to their landlord if appropriate. If a claimant has accrued two month's rent arrears, we will, if requested by the landlord, consider paying the UC housing costs direct to the landlord and take steps where requested to recover the rent arrears through deductions from their remaining UC payment. 22

23 How to Request a Managed Payment as a Landlord: All Landlords can use the form available on GOV.UK UC47 Landlord request for a managed payment or rent arrears deduction to apply for a managed payment of the housing costs and recovery of arrears. The information they will need to supply includes tenants name, address, and if known their date of birth and National Insurance number current tenancy agreement including proof of the rent arrears which must include the amount of rent outstanding and the amount of rent due each calendar month the landlord s contact details their name and address plus their bank/ building society account number and sort code for the payments. any reference number / transaction ID for that tenant the social landlords DWP creditor reference number Once UC receives this information they will decide whether or not a managed payment is appropriate and inform both the landlord and claimant. The claimant will also be offered Personal Budgeting Support. Social Registered Landlords also have the additional option of applying for a Managed Payment & recovery of rent arrears at the point of rent verification at the new claim stage this is shown on the SRS rent verification form. 23

24 Complete question 6 only if two claimants are named at the top of this form Social Rented Sector (SRS) Housing costs verification form Universal Credit Verification of Housing Costs Social Rented Sector Landlord Form v58 1. Are both the claimants named above on the joint tenancy? 2. Number of bedrooms? Yes No Official-Sensitive 3. Are there any rent free weeks? Yes (select number of weeks in drop down adjacent) No Agent to complete this section (before sending) Claimant one name Claimant two name (if applicable) Claimant Address 4. Rent breakdown for this property (do not include Management fees if claimant is in Temporary Accommodation) Basic Rent Amount *Eligible Service Charge amount for UC Frequency Frequency Ineligible Service Charge amount for UC Frequency Claimant Postcode Landlord Name *Always include the claimants Postcode *Universal Credit service charges guidance for Landlords Claimant in Temporary Accommodation? Yes No 5. Total Rent Payable for this Property 6. Date of last rent increase? Landlord to complete this section (please ensure all relevant sections are completed fully before returning) 7. Confirm that the tenant(s) named above is liable for payment of rent I confirm that the person named above is our tenant Yes No (please supply details below) 8. Is this tenant in rent arrears? 9. If so what is the outstanding figure? Yes* No 1. Tenant One Reference No. 2. *Tenant Two Reference No. *if applicable 1. Tenancy start date Format **/**/**** 10. Do you want to apply for a Managed Payment of rent for this tenant?* Yes No 11. *If 'Yes' please provide your Creditor Ref. No: Managed Payments to Landlords are also often referred to as Alternative Payment Arrangement (APA) Guidance on Managed Payments to Landlords can be found on GOV.UK on the following link for Universal Credit and rented housing 2. Date tenant moved in (if known) 3. Is this property temporary accommodation? 4. Is this a joint tenancy? 5. Total numb er of joint tenant s? Yes No Yes - go to step 5 No - go to step 7 Format **/**/**** 12. Reason for APA request - If applying Tier 1 (tick all factors that apply) Reason for APA request Tier 2 (tick all factors that apply) Reason for APA request

25 List of Third Party Deductions There are currently eleven different types of Third Party Deductions (TPDs), set out in the regulations: Mortgage Interest arrears (where the lender is not part of the MID scheme) Owner-occupier service charges arrears Rent and/or service charges arrears Gas arrears Electricity arrears Council Tax or Community Charges arrears Court Fines (or Compensation Orders) Water arrears Child Support Maintenance (Old Scheme) Integration loan arrears Eligible loan arrears There is a form available on GOV.UK to request a TPD - Application for third party deductions: Universal Credit 25

26 Further information and resources The new site gives information for new and current customers, those supporting them with their claims, and links to the gov.uk partnership toolkit which contains the most up to date information for Landlords, customers & employers. 26

27 Additional & Specific Support available through UC Full Service 27

28 Childcare Costs Universal Credit will help households meet the costs of childcare so they are able to take up work. The childcare policy means people with average childcare costs should be able to work full time: Families can claim back up to 85% of Eligible Child Care Costs, up to a maximum of: for one child for 2 of more children. Children will be eligible for Childcare costs where they are registered in the benefit family unit up until the August following their 16 th Birthday. The Childcare provider must be a registered or qualifying provider in order for the costs to be paid. Costs can be claimed where the claimant, or both claimants for a couple claim, are in paid work or have accepted a job offer that is due to start before the end of their next Assessment Period.

29 Declaring and claiming childcare payments: Claimants must report their childcare costs during the UC assessment period in which those costs were paid to the childcare provider. Claimants who may pay in advance for childcare costs that cover up to three UC assessment periods will receive a proportion of the total amount paid spread over the assessment periods they relate to: o o This will reduce the likelihood of the claimant s entitlement being limited by the monthly maximum limit. When this happens, the claimant is awarded 85% of the proportion of the costs that cover childcare in respect of that assessment period. Claimant s will need to supply some evidence of any childcare costs, where it is required. This may be provided with: o o o A letter or letter headed invoice from the registered childcare provider showing the costs have been paid. A Bank/credit card statement displaying the actual amount paid, the date of the payment and the provider name as the recipient. Cash payment receipt with all relevant details of the payment and provider.

30 Support for Care Leavers The Government is committed to improving outcomes for care leavers and has introduced a number of measures to encourage them to engage in education and employment, and to smooth the transition when leaving care. Care leavers are able to make an Advanced Claim up to 28 days before their 18 th Birthday They will have a pre-claim interview with a JCP Work Coach to check their ID documents, ensure they have a bank account, and gather confirmation that they are leaving care. The work Coach will also book their Commitments appointment and Evidence Interview for as close as possible to the 18 th birthday to ensure the claim is processed quickly and smoothly. They can access Alternative Payments arrangements and Personal Budgeting Support from Day 1 of their claim and this will be discussed with them at that Work Coach appointment. Advances can be requested and payment made on Day 1 of their claim. Care Leavers can undertake full time non advanced education while claiming Universal Credit. If a sanction was applied to a Care Leavers Claim, they are able to access Hardship provision from Day 1 of their sanction. We have been Working closely with our Local Authorities and new protocols have been recently signed off Service to support with the changes Universal Credit will bring, and to develop stronger links between each of our sites and their local Leaving Care teams. V1 1

31 Universal Credit and Self-employed claimants. The number of people becoming self employed in the UK is growing and it is estimated based on previous data, that up to 10% of Universal Credit Claimants will be self-employed. Universal Credit therefore supports people into self-employment, but only where it is the best route for them to become financially self-sufficient. To ensure Self-employment is a viable route for the claimant and will be financially sustainable, the process for Self employment works differently to other employment: When Self Employment is declared, the Claimant will be booked an appointment with a specialist self employment Work Coach who will conduct a Gateway interview to assess whether or not they are gainfully self employed. This assessment will determine their future conditionality requirements, and the way their income is assessed for Universal Credit. Where they are assessed as being gainfully self-employed they will enter into a 12 month start up period.

32 End of the Start Up Period: At the end of the 12 months Start Up period, it is expected that the claimant will have grown the business sufficiently to become sustainable. At this point the Minimum Income Floor will be applied. This is calculated using: The number of hours expected to work, up to a maximum of 35 hours per week x appropriate National Minimum Wage Multiplied by 52 and then divided by 12 for a monthly figure Minus Income Tax and National Insurance Contributions Earnings over the Minimum Income Floor will also be taken into account with the standards earnings taper applied. The Gateway interview process and Minimum Income is only applicable to those in the All Work Related Requirements regimes. Slide 32

33 Further Information and Resources 33

34 Spalding Jobcentre Leadership Team Contacts Spalding Jobcentre Customer Service Manager: Louise Cole Spalding Jobcentre Work Coach Team Leaders: Sally Ballard Lincolnshire Partnership Team: Graham Metcalfe, Partnership Manager, Lincolnshire Felicity Cooper, Partnership Manager, Lincolnshire Senior Leaders: Ann Shreeve District Operational Lead, Lincolnshire Paul Carr Customer Service Leader, Lincolnshire Universal Credit Full Service: Universal Credit live service:

35 Useful links & Guides Understanding Universal Credit: Universal Credit Partnership Toolkit: o This contains a wealth of information for customers, employers and Landlords. o (UC and Rented Housing direct link) Money Advice Service - advice and support for landlords Money Advice Service - help for tenants Money Manager tool provides personalised, independent advice to help people manage their budget and monthly Universal Credit payments. A demo video is available for those who require more information Universal Credit: different earning patterns and your payments information about different earnings patterns and how these may affect a Universal Credit payment Decision Making Guide for detailed information and an explanation of the law. 35

36 Welfare Reform changes Removal of Limited Capability for Work payment (UC Live Service and UC full Service) From 3 April 2017, there will be a change for Universal Credit claimants who have limited capability for work following a Work Capability Assessment (WCA). Claimants who make a claim to Universal Credit on or after 3 April 2017 on the grounds of having a disability, illness or health condition, will not get the limited capability for work payment of Universal Credit. However, existing Universal Credit claimants will be protected, including the following claimants: existing claimants who are getting the limited capability for work payment in Universal Credit before 3 April 2017 existing Universal Credit claimants who make a claim before 3 April 2017 on the grounds of having a disability, illness or health condition and are later found to have limited capability for work following a WCA existing Universal Credit claimants who have a further WCA after 3 April 2017 and are assessed as having limited capability for work. This includes claimants who change from having limited capability for work and work-related activity to having limited capability for work claimants who were getting the limited capability for work payment before 3 April 2017 who are no longer getting Universal Credit due to their income and then re-claim Universal Credit within 6 months existing claimants who made their claim to Universal Credit before 3 April 2017 and are found fit for work, who request a mandatory reconsideration or appeal and are then found to have limited capability for work. 36

37 Welfare Reform changes Limiting support for third or subsequent child (UC Live Service and UC full Service) Universal Credit will no longer pay an additional amount for a third or subsequent child or qualifying young person born on or after 6 April 2017, unless certain exceptions apply. Claimants with three or more children will not be able to make a new claim unless the claimant has been in receipt of Universal Credit within the previous six month period and is making a reclaim. Claimants will still be entitled to an additional amount for any child or qualifying young person born before 6 April Claimants will also be entitled to an additional amount in respect of any disabled children, regardless of the total number of children in the household. The exceptions where we pay for a third or subsequent child is when the child: is born as part of a multiple birth e.g. twins, apart from one child in the multiple birth is adopted from local authority care is living with the claimant as part of either: a formal caring arrangement (or was in such an arrangement until their 16th birthday and has continued living with the claimant); or an informal caring arrangement, where it is likely they would otherwise be likely to be looked after by the local authority is the child of a child (under 16) that the claimant is responsible for was conceived as a result of non-consensual sexual intercourse, or at a time when the claimant was subject to ongoing control or coercion by the other parent of the child. For detailed information: Universal Credit and families with more than 2 children: information for stakeholders 37

38 Welfare Reform changes Changes to housing costs for 18 to 21 year olds (UC full Service only) From 1 April 2017, claimants who make a claim to Universal Credit on or after 1 April 2017 aged between 18 and under 22 years of age will not get housing costs paid as part of Universal Credit unless they meet certain exemptions. This change applies to: new claims and existing claimants that declare a change to add housing costs for the first time single claimants in the Intensive work search regime Exemptions Detailed information on exemptions can be found in ADM memo 6/17: Housing costs element for Universal Credit claimants aged 18 to 21 38

39 Questions and Close. 39

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