Universal Credit. 3 rd September 2014

Transcription

1 Universal Credit 3 rd September

2 Universal Credit overview Universal Credit aims to ensure claimants are better off in work than on benefits. It promotes personal responsibility to actively seek work and increase earnings, while continuing to provide support for those who need it most. It s designed to make work pay. As claimants earn more money, financial support will be withdrawn at a slower rate than is the case under the current system. Real Time information (RTI) link with HMRC will facilitate this Claimants will be able to apply for their benefits online. 80 per cent of benefit claimants already use the internet. Telephone and other support services available if needed. A single payment will be made to a household rather than an individual. This will include housing costs. It will be paid monthly, in arrears. Universal Credit requires claimants to accept a Claimant Commitment. This sets out what is expected in return for receiving assistance, taking into account personal circumstances and capability to earn. Local support will be available to help claimants where appropriate. This will be provided through DWP and local authority delivery partnerships. 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 Universal Credit - making work pay 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. 4

5 Universal Credit - one year on The first year of Universal Credit has seen a series of major achievements in reforms to the welfare state: thousands of claimants benefiting from an easier single benefit payment sticking with them as they move into work rather than the current mixture of 6 in and out of work benefits the Claimant Commitment is now in place in all British jobcentres 26,300 members of staff have been trained to provide job coaching, expert help and advice to encourage and motivate claimants in their search for work over 600,000 Claimant Commitments have been signed resetting the relationship between benefit claimants and Jobcentre Plus help the roll-out of digital jobcentres will be complete by Autumn placing wi-fi and computers in all jobcentres we have continued with roll out to 39 areas in England, Scotland and Wales we have expanded the service to include couples in some sites. 5

6 Universal Credit - roll out and expansion The expansion of the full Universal Credit benefit to the rest of the North West of England has started. 23 rd June - Hyde, Stalybridge, Stretford and Altrincham jobcentres 30 th June - Southport, Crosby, Bootle, Bolton and Farnworth jobcentres 7 th July - Birkenhead, Bromborough, Hoylake, Upton and Wallasey jobcentres 14 th July - Preston, Leyland, Prestwich and Bury jobcentres 21 st July Eccles, Huyton, Kirkby, Newton-le-willows, St Helens, and Worsley jobcentres 28 July - Chester, Congleton, Crewe, Wilmslow 30 th June - we started taking claims from couples in Hammersmith, Bath, Rugby, Harrogate and Inverness By the end of the year, we will have 90 jobcentres in Britain offering Universal Credit We will extend to families later in the year 6

7 Live service experience so far The majority of claims from Universal Credit claimants have been made online. 90% of Universal Credit claimants are making their claims online Over three-quarters (78%) of Universal Credit claimants also feel confident about their ability to budget with monthly payments 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 27.1 hrs / week versus 13.6 hours /week RTI is working for claimants and employers - majority of employers are submitting PAYE data in real time ; RTI data is used in approximately 30% of UC payment calculations 7

8 Real Time (Earnings) Information RTI is working for employers - the majority of employers are submitting PAYE data in real time RTI data working for claimants RTI data is used in approximately 30% of UC payment calculations Claimant Employer 8

9 Universal Credit claimant journey I get information or advice about how to claim Universal Credit. I receive a telephone call inviting me to attend an interview in the jobcentre. I attend my interview at the jobcentre, taking along any paperwork that has been asked for. I sign my Claimant Commitment, which records the activities I ve agreed to do in return for receiving Universal Credit. I receive my Universal Credit decision letter. It tells me when I will receive my payments, and confirms what I need to do in return for getting Universal Credit. I telephone the helpline if there is a change in my circumstances, including if I start work. My Claimant Commitment is reviewed and may be changed to take into account my new situation. I make my claim online at GOV.UK. If I need help, I can telephone the Universal Credit helpline for assistance. I receive a text message to remind me about my interview at the jobcentre. I begin looking for work. I can get advice on jobseeking, budgeting and going online from my work coach. I regularly visit the jobcentre where my work coach and I discuss the actions we ve agreed in my Work Plan. If a change in my circumstances means my Universal Credit payments change, I receive a letter confirming the new details. 9

10 Universal Credit - test and learn Safe and controlled roll out of Universal Credit allows us to test and learn from different approaches, and build a stronger service. 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 via the Local Support Services Framework (LSSF). Test and learn allows us to move forward in a safe and controlled way, using feedback and analytical data to deliver continuous improvements. Our In-work progression pilots are testing ways to help claimants on a low income increase their work hours and income to reduce dependency on benefits. The Direct Payment Demonstration Projects and the LA-led pilots have already delivered important learning, influencing our service design and delivery. 10

11 Testing and learning projects and pilots Local Authorities represented on LA-Led Pilots and Direct Payment Demonstration Project Direct Payment Demonstration Projects NORTH OF SCOTLAND North Lanarkshire 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. Orkney & Shetlands Islands NORTH OF SCOTLAND Edinburgh WEST OF SCOTLAND Southwark Greater London EAST AND SOUTH EAST SCOTLAND GLASGOW, LANARKSHIRE AND EAST DUNBARTONSHIRE NORTH LONDON West Dunbarton EAST LONDON WEST OF SCOTLAND WEST LONDON NORTHUMBERLAND, TYNE AND WEAR 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 SOUTH LONDON DURHAM AND TEES VALLEY Lewisham Wakefield Key CUMBRIA AND LANCASHIRE N/A LA-Led Pilots NORTH EAST YORKSHIRE AND THE HUMBER Direct Payment Demonstration Project Birmingham Both West Lindsey WEST YORKSHIRE GREATER MANCHESTER EAST AND WEST SOUTH YORKSHIRE MERSEYSIDE NORTH AND MID WALES GREATER MANCHESTER CENTRAL AND CHESHIRE NOTTINGHAMSHIRE, LINCOLNSHIRE AND RUTLAND DERBYSHIRE, STAFFORDSHIRE AND SHROPSHIRE NORTH AND MID WALES Shropshire BLACK COUNTRY 164 EAST ANGLIA LEICESTERSHIRE AND NORTHAMPTONSHIRE BIRMINGHAM AND SOLIHULL MERCIA Torfaen BEDFORDSHIRE AND HERTFORDSHIRE SOUTH WEST WALES ESSEX WEST OF ENGLAND AND GLOUCESTERSHIRE THAMES VALLEY Caerphilly 3 SOUTH EAST WALES Newport KENT GREATER WESSEX SURREY AND SUSSEX Oxford DEVON, CORNWALL AND SOMERSET Rushcliffe Melton Jobcentre Plus District Bath & NES Local / Unitary Authority North Dorset

12 Local Support Services Trials Feb 2013 Local Support Services Framework Provides a structure for the delivery of local support services to individuals needing additional help with the new demands of Universal Credit. Sets out how we plan to trial and test elements of the framework Dundee City Dec 2013 LSS Update & Trialling Plan Argyll and Bute Northumberland and South Tyneside Sept 2014 Local Support trials commence Key aspects : triage (where are looking to co-locate services in at least one location in each DWP District during 2014/15) Derby City West Lindsey, City of Lincoln, North Kesteven & Lincolnshire access to digital support 12 development of personal budgeting and financial inclusion support initiatives (helping claimants to obtain bank accounts, debt advice and Alternative Payment Arrangements) partnership development From Oct 2014 mobilisation of informal trialling South Staffs Carmarthenshire Blaenau Gwent Westminster and Royal Borough of Kensington and Chelsea Islington Lambeth/ Lewisham/ Southwark

13 Personal Budgeting Support - Context We want to help people to be able to manage their own finances successfully, whether they are in or out of work REQUIREMENT FOR A PERSONAL BUDGETING STRATEGY IS DRIVEN BY THESE CHANGES Housing costs direct to tenant Single payment to household Monthly Payment 13

14 Personal Budgeting Support Online budgeting tools for claimants who can help themselves - such as those offered by Money Advice Service and Citizens Advice. Advice services offered by external organisations for those who need more support with, for example, getting a bank account or doing a monthly budget plan. Advice will be delivered through online, telephone and face-to-face channels by expert providers at a national and local level. A personal planner is available on gov.uk to help claimants understand and prepare for financial changes arising from the introduction of Universal Credit. We are also trialing the new concept of a Budgeting Club for new and existing claimants. This will provide face to face practical help to claimants, initially in a group setting and subsequently on a one to one basis if needed. Up to 1.3 million potential UC claimants currently do not use a transactional bank account to manage their benefit payments. We are looking at ways to make accounts with budgeting functionality, such as jam jar accounts, more widely available. We are consulting with financial providers across the private, social and third sectors and considering the best ways to make these types of products more available. 14

15 Personal Budgeting Support 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. 15

16 Working with Landlords We are working with social landlords such as councils and housing associations to make sure they are not just handling the change, but working with tenants proactively to help them benefit. We have already: 1. improved the process of payments direct to landlords, identifying a single point of contact within the Department to swiftly address any issues that landlords may have. 2. introduced a daily check of cases where payment is due to confirm payments have been issued correctly. 3. increased support to help people adjust to budgeting. This includes extra support to help people manage their finances better. Going forward - a budgeting action plan is being included with each person s Claimant Commitment to make sure they are ready to manage their monthly payment at the very start of their Universal Credit journey 16

17 Engagement in Wales The Programme is engaging with: Welsh Government members of the Universal Credit Partnership Forum Welsh local authorities represented on Universal Credit local authority forums, the Welsh Local Government Association (WLGA) are members of the Partnership Forum, input from several Welsh local authorities to Universal Credit working groups Universal Credit Welsh Advisory Group a tri-partite forum for Welsh Government, WLGA and DWP, to consider the impact of Universal Credit in Wales, share best practice and consider where better alignment is needed between welfare reform measures Third sector and other stakeholders Wales is represented in the testing of Universal Credit 17

18 Useful links for stakeholders An introduction to Universal Credit video Universal Credit pages on GOV.UK A toolkit for Partners The Claimant Commitment A Personal Planner to help claimants prepare for Universal Credit A pictorial representation explaining Better off in Work w-uc-tops-up-earnings-to-make-work-pay.pdf Budgeting help and support Operating Guidance for Personal Budgeting Support & Alternative Payment Arrangements rsonal-budgeting-support-cover-note.pdf rsonal-budgeting-support-guidance.pdf The Local Support Services Framework -local-service-support-framework.pdf 18

19 Useful links for stakeholders The Money Advice Service A Money Advice Service Universal Credit video Making work pay comparison graph explaining how Universal Credit compares to the current system when claimants increase their hours w-uc-helps-to-make-work-pay.pdf A quick guide for employers about Universal Credit and RTI HMRC and RTI Eight Ways Universal Credit can help your business w-uc-can-help-your-business.pdf 19