Universal Credit. Personal Budgeting Support. Local Support Services. March 2014

Transcription

1 Universal Credit Personal Budgeting Support Local Support Services March

2 Universal Credit timeline Transition & Migration End-state Service Development Claimant Commitment Digital Jobcentre Universal Jobmatch Expand scope, starting in Summer 2014 Test & Learn Couples Children Expand scale, once scope expansion is safely tested North West 2

3 Universal Credit - it s all about work Universal Credit aims to reward work. No 16 hour rule and no limits on the number of hours someone can work. UC payment only reduces gradually as their take home pay increases so claimants won t lose all their benefits at once if they are on a low income. Universal Credit will encourage a new type of relationship with claimants. Work Coaches will help claimants to become more independent by supporting them in their worksearch activities. They will help claimants plan and focus their jobsearch as well as set them actions that give them the best chance of finding work. Universal Credit aims to support jobseekers through the Claimant Commitment to raise their expectations of what they can achieve, and to encourage responsibility. Those who are fit and ready for work will be expected to look for a job on a full time basis dependent on circumstances. Universal Credit claimants are expected to use Universal Jobmatch, an intelligent job matching service that helps employers to get the best fit for the jobs that they have on offer. 3

4 Total net earnings Better off in work Universal Credit helps to ensure people are better off in work than on benefits by: Removing the limit to the number of hours someone can work each week Reducing a claimant s Universal Credit payment gradually as their earnings increase, so they won t lose all their benefits at once if they re on a low income. Total in-pocket income Universal Credit payment 4 Gross earnings

5 Roll out: Now Spring 2014 New claims to Universal Credit claims will be taken at 10 Jobcentres across England, Scotland & Wales: Ashton-under-lyne, Wigan, Oldham and Warrington began taking Universal Credit new claims in Summer 2013 as part of our Pathfinder Hammersmith, Rugby and Inverness are now taking Universal Credit new claims. Bath, Harrogate & Shotton will take new claims by Spring 2014 The Claimant Commitment is rolling out nationally to around 100 Jobcentres a month for new claimants to Jobseekers Allowance, to support cultural transformation: 25,000 Jobcentre Plus advisers retrained to deliver Claimant Commitment Around three quarters of Jobcentres have now gone live with the Claimant Commitment 11 in-work progression pilots ane now being delivered. Improved digital services are rolling out nationally across Jobcentre Plus: 6,000 new computers will be installed across the country, helping claimants search and apply for jobs online, claim on-line benefits and improve their digital skills. 5

6 Roll out: Summer 2014 We will continue to expand our current live service and functionality in our live sites: From summer 2014 we will progressively start to take new claims for Universal Credit for couples From autumn 2014 we will take new claims from families Once it s safely tested we will also expand the roll out to cover more of the North West of England. Our plans will allow us to make Universal Credit available in each part of Great Britain during 2016: New claims to existing benefits Universal Credit replaces will close down The vast majority of the remaining claimants moving onto Universal Credit during 2016 and

7 Claimant Commitment Claimant Commitment Individually tailored to take account of someone s circumstances Claimant Work Coach Outlines what a claimant must do in return for their benefit Claimant Create Accept Work Requirements Work Sets out clearly the consequences of not meeting Claimant Commitment Claimant Commitment reviewed on a regular basis 7

8 Universal Credit - test and learn We will test the impact of Universal Credit with claimants as we extend the service across all claimant groups including families and households with children. We will work in partnership with Local Authorities and private and voluntary partners to test the support for those with more complex needs. Test and learn allows us to move forward in a safe and controlled way, using feedback and analytical data to deliver continuous improvements. The Direct Payment Demonstration Projects and the LA-led pilots have already delivered important learning, influencing our service design and delivery. 8

9 Testing our approach with LAs and Housing Associations Direct Payment Demonstration Projects Helped identify what interventions best help tenants and landlords e.g. different levels of arrears at which direct payment reverts back to landlords, ways of providing support to tenants and using a range of payment methods. West Dunbarton North Lanarkshire Edinburgh 9 Local authority led pilots Explored approaches on how local expertise can support residents to claim Universal Credit: a) Partnership working which is key area of work b) encourage people to access online support independently; c) improve their financial independence and how they manage their money; d) deliver efficiencies and reduce homelessness. Dumfries & Galloway Shropshire Birmingham Caerphilly Newport North Dorset Oldham Wigan Torfaen Wakefield West Lindsey Rushcliffe Melton Oxford Bath & NES Southwark Lewisham Key: UC LA led pilots Direct Payment Demonstration Projects

10 Key learnings to date: Direct Payment Demonstration Projects Early and clear communication is essential using a mix communication channels Direct Debits are not always the best payment method, tenants want to feel in control of their budget Accurate assessment of people s support needs is important, and the arrears trigger is used to balance the risk for tenants and landlords Local authority led pilots Understand and map local delivery partners and agree shared objectives, focussing on delivering a simple holistic service to meet the needs of the local population. There must be commitment to partnership working at all levels across the organisations, with open communication and regular review points to monitor projected demands. Understanding the partners resources, abilities, flexibilities and expectations is key as is allowing time to build trust. 10

11 The Universal Credit live service The live service started in Ashton-under- Lyne on 29 April By Spring 2014 the live service will be available in 10 areas of the country. This helps us to test the system with local authorities, employers and claimants. The live service will expand in 2014 to more types of claimant and to more areas of the North West. 11

12 Live service update (1) The majority of claims from Universal Credit claimants have been made online. We are already seeing people moving into work as you would expect with this claimant group. Claimants are making use of services provided by local authorities Internet Access Devices support to make a Universal Credit claim on line Personal Budgeting Support A process is in place to make alternative payments to vulnerable claimants, including: split payment managed payment, i.e. landlord paid housing costs more frequent payment period, i.e. fortnightly. 12

13 Live service update (2) Early evaluation from the first four live service sites shows: Almost two-thirds of Universal Credit claimants think that the new system provides a better financial incentive to work Universal Credit claimants are doing more to get into work than jobseekers claiming under the current system 90% of Universal Credit claimants are making their claims online and over three-quarters (78%) of Universal Credit claimants also feel confident about their ability to budget with monthly payments 13

14 Support for claimants Local Partners Local Area LA Services National Partners Support for claimants with complex needs Budgeting Work Online Housing Jobcentre Plus 14

15 15 Local Support Services Framework

16 Local Support Service Framework The Universal Credit Local Support Services Framework was published in February This provided a structure for the delivery of local support services to individuals needing additional help with the new demands of Universal Credit. This could include understanding the new system, help with getting online, and help with managing on a monthly budget and paying rent. In December 2013 we published the LSSF Update and Trialling Plan. The sets out how we plan to trial and test elements of the framework and provides information on progress and agreement since the February publication. This includes lessons learned from the UC live service sites, Local Authority Led Pilots, and the Direct Demonstration Projects. LSSF trialling proposals include: Aspects of the financial model and incentive structure Use of the European Social Fund as a potential funding stream Partnership development Development of personal budgeting support initiatives Service mapping 16

17 LSSF (cont) Central to delivery of the LSSF is the Delivery Partnerships Approach between DWP, Local Authority Associations, local authority representatives and service providers, such as Social Landlords and Third Sector organisations. This will enable: Provision of a joined up, holistic service for claimants with complex needs Where a claimant is receiving multi-agency support there should be a single claimant journey shared between agencies for helping the claimants to move towards greater independence Wherever appropriate, each claimant should be supported towards work readiness We are committed to sharing good practice and learning from LSSF trialling conducted during 2014/15 as per previous piloting programmes. 17

18 Local Delivery Group: Example Digital Charities Adult Education Welfare Rights LA Services (e.g. libraries) Local Authority Adult Social Care Community Reps DWP District/ Partnership Managers Ex-offender Services Homelessness orgs Disability charities Social Landlords The real purpose of the Partnerships approach is joined up single claimant journey for claimants with complex needs, from benefits dependency to independence and, where appropriate, work 18

19 The Partnering Construct Overarching Partnership Agreement DWP & LA Associations Delivery Partnership Agreements DWP Districts & LAs A common Overarching Partnering Agreement (OPA), signed at the corporate level between the DWP and LA representative bodies (LGA, WLGA and COSLA) setting out a number of general terms, obligations and expectations that apply to all DWP and LA delivery partnerships; and A set of local level Delivery Partnerships Agreements (DPA), signed between the DWP and LAs locally, will give details of specific service providers locally. 19

20 Who do we think may require LSS services? Claimants with mental health issues Geographically isolated people Multi Agency Public Protections Agreement (MAPPA) restricted claimants Prison leavers People with English language limitations Claimants with learning difficulties People with Financial Inclusion or severe debt issues Domestic Violence victims People with literacy or numeracy difficulties Entitled 16/17 year olds People with physical and/or sensory disabilities Those under the supervision of the Troubled Families Initiative Non EEA citizens including refugees Homeless people People with addiction problems (drugs / alcohol / gambling) Care leavers 20

21 Personal Budgeting Support Why? REQUIREMENT FOR A PERSONAL BUDGETING STRATEGY IS DRIVEN BY THESE UC CHANGES We want to help people to be able to manage their own finances successfully, whether they are in or out of work Housing costs direct to tenant Single payment to household Monthly Payment 21

22 Personal Budgeting Support - Overview Alternative Payment Arrangements Claimants managing their money Money advice Financial products 22

23 Alternative Payment Arrangements For a minority of claimants, alternative payment arrangements may be required; these might include paying the rent directly to the landlord making more frequent than monthly payments splitting the payment within the household We will also have the option to make rent payments direct to the landlord if a claimant reaches a certain level of rent arrears. (Usually 2 Calendar months / 8 weeks) These alternative payment arrangements will be considered on a case by case basis and assessed on their individual merits. When considering alternative payment arrangements, a series of Tier 1 and Tier 2 factors indicating potential support needs will be used to help to decide if these arrangements are appropriate to an individual. The decision about whether an alternative payment arrangement is suitable will be made by a UC adviser through the PBS process. 23

24 APA consideration factors 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 24

25 Managed Payments to Landlords Managed payments will be considered on a case-by-case basis and can be requested by landlords as well as claimants. They can be considered on request from: The start of the claim; or During the claim if the claimant has accumulated rent arrears which will put their tenancy at risk We do expect landlords to continue to follow their usual rent collection practices and procedures, making every effort to manage rent payments and recovery of any rent arrears. However, if the claimant is unable or unwilling to resolve payment issues with their landlord, UC can then intervene. When a claimant has accumulated one month's rent arrears due to persistent underpayment, we will make an early intervention, reviewing the financial support they need and making managed payments to their landlord if appropriate. If a claimant has accrued two month's rent arrears, we will pay the UC housing element direct to the landlord and if requested take steps to recover the rent arrears through deductions from their remaining UC payment. 25

26 Money Advice Money advice will include: Online budgeting tools for claimants who can help themselves e.g. by Money Advice Service Advice services by external organisations for claimants who need more support with, for example, getting a bank account or doing a monthly budget plan. Local advice services will be delivered by phone and face-to-face by expert providers through the Local Support Services framework. The Local Support Services Framework is available on gov.uk: A UC personal planner is available on gov.uk to help claimants understand and prepare for financial changes arising from the introduction of Universal Credit: The Planner asks claimants a set of questions about their readiness for claiming Universal Credit and, depending on the answers given, sets out an individual action plan. 26

27 The PBS High Level Design (Pathfinder) Claims UC Signpost to MAS Agrees Claimant Commitment PBS initial filter No PBS action UC claim continues To quickly filter out those who need no support or can self serve UC paid To identify those most likely to need APA PBS filter1 No to all Yes to any APA data gather APA decision & review set No PE PE Implement APA PBS filter 2 Completing the APA data gather To confirm money advice is needed Glossary: APA alternative payment arrangement MAS Money Advice Service PBS personal budgeting support UC Universal Credit PBS provision Refer to PBS provider where appropriate Notify APA decision 27

28 Suitable Financial Products 75% of people in employment are paid earnings monthly in arrears. Monthly payment of benefit will: Prepare households for the reality of budgeting on a monthly income; Ease the transition into work; Make it easier for households to take advantage of cheaper tariffs for essential costs such as utility bills. The majority of Universal Credit claimants will continue to be paid through mainstream current bank accounts. Having a transactional account will enable claimants to make electronic payments out of the account. Most claimants already use a mainstream bank or building society account but we know that some claimants currently use a Post Office card account, which does not offer transactional facilities such as direct debits or standing orders. We are working with banks and other financial institutions to support claimants to open suitable accounts before they migrate to UC. We are investing 38 million into the modernisation and expansion of credit union services. A growing number of credit unions offer current account services as an alternative to mainstream bank accounts. 28

29 Payment Advances Universal credit payments will be issued monthly through the BACS system. The first payment will be made after the initial UC calculation period (one calendar month from the date of claim) + 7 days. New claimants and those transitioning from legacy benefits may be eligible for an advance of their indicative award to help them manage during the first assessment period if they need it. For UC Advance (New Claim) the claimant will be advised at the non repudiation stage that if they can't manage they can claim an advance. They would have to have an underlying entitlement, be in financial need and able to repay the advance over the next 6 months. For a UC Advance (Transitional) the claimant will have to ask for the advance within one month of moving across to UC and have been in receipt of an existing benefit within one month of moving across to UC. These UC advances will provide an interest-free lending facility for claimants who find it difficult to access mainstream credit, and could offer an alternative to high cost borrowing. A claimant can request an advance of up to 50% of their indicative UC award. The UC Advance (New Claim) can be claimed up to 21 days from the date of claim during the first month and will be issued via BACS after 3 days. 29

30 Useful Links The UC Personal Planner - aimed at helping financial and digital preparation: Money Advice Service support for UC The Local Support Services Framework /uc-local-service-support-framework.pdf The Local Support Services Update and Trialling Plan The Universal Credit and Rented Housing Frequently Asked Questions Operating Guidance for PBS & APAs /personal-budgeting-support-cover-note.pdf /personal-budgeting-support-guidance.pdf 30