WHAT DOES UNIVERSAL CREDIT MEAN TO ME?

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1 WHAT DOES UNIVERSAL CREDIT MEAN TO ME? DEVELOPING HOMES AND CREATING OPPORTUNITIES FOR PEOPLE WITHIN WEST NORFOLK

2 This is a booklet about Universal Credit. Over the next few pages we ll raise the questions that we get asked most about Universal Credit. Your questions are in white our answers are in orange. YOUR QUESTIONS What is Universal Credit? Who will be affected? What payments does it replace? Who will not be affected? My partner is a pensioner but I am of working age. How are we affected? When will the changes happen? How will I claim Universal Credit? What is happening to Housing Benefit? How will Universal Credit be paid to me? Why do I not receive Universal Credit for the first 7 days of my claim? How is my claim assessed and what is my Monthly Assessment Period?

3 What will happen during the 4 rent free weeks? How do I report a Change of Circumstance? How will my non-dependant affect my claim? I have a spare room. How will this affect my claim for Housing Costs? I am aged between 18 and 21. How will this affect me? I don t have a bank account. What can I do? What benefits are excluded from Universal Credit? Disclaimer : The information provided in this booklet is sourced from DWP regulations and maybe subject to change. Freebridge Community Housing accepts no responsibility for any loss incurred whilst using this material or information, or from any action or decision taken as a result of using any such information. The information in this booklet is for general guidance only and is correct at the time of production. 3

4 What is Universal Credit? Universal Credit replaces a number of income benefits and housing benefit with one single monthly payment. There will be a basic rate for all claimants called the standard allowance and extra amounts for people in different circumstances for example if they have children, a disability or need help with housing costs. 4

5 Who will be affected? If you are age years and 6 months, and receive certain benefits (see below). Universal Credit will be means-tested, which means that anyone who applies will have their income and savings assessed. What payments does it replace? Housing Benefit Child Tax Credit Working Tax Credit Income Support Income-Based Jobseekers Allowance Income-Related Employment and Support Allowance. 5

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7 Who will not be affected? If you and your partner are both old enough to receive Pension Credit you will be able to continue to claim Pension Credit and Housing Benefit. Pension Credits will be changed to include a new element called housing cost for pensioners who are eligible for support with rent. It is not yet known when this change is going to take effect. My partner is a pensioner but I am of working age. How are we affected? A claim for Pension Credit will no longer be allowed if both members of a couple have not reached the qualifying age for Pension Credit. If only one of you has reached the qualifying age you will have to jointly claim Universal Credit. You will be contacted by the DWP when you will have to do this. 7

8 When will the changes happen? Universal Credit started to roll out in the King s Lynn area in March The roll out process is estimated to be completed by March In this area, existing benefit and tax credit claimants who do not have a change of circumstances will not be affected until July 2019 at the earliest. All claimants will be advised of when they will be affected by the DWP. When you are told you need to claim Universal Credit please act quickly and remember you will also need to inform your Income Advisor at Freebridge Community Housing. 8

9 How will I claim Universal Credit? All Universal Credit claims will need to be completed online at You will need to provide information about yourself, your home, your household income and information about anyone else living at your address. Following your online claim you will attend an interview at the job centre. You will need to take proof of your identification and address along with your proof of rent and tenancy agreement; for a full list of the documents you will need please see our Universal Credit Customer Checklist which is available from your Income Advisor or reception. From November 2018 this area will be part of the Universal Credit full digital service - this means that all Universal Credit claimants will have an online account to personally access their claim. If you do not have a personal address or you do not have regular access to the internet then you will not be able to manage your Universal Credit claim and you claim will be cancelled. 9

10 What is happening to Housing Benefit? Housing Benefit will no longer be paid direct to Freebridge Community Housing. It will be paid directly to the person claiming it as part of the one single monthly payment of Universal Credit. For people of working age, Housing Benefit will no longer exist and will be known as the housing costs part of Universal Credit. 10

11 How will Universal Credit be paid to me? Claimants will receive their first payment approximately 5 weeks after their application. Universal Credit (including housing costs element) will need to be paid into a bank/building society account or credit union account. It will be paid monthly, in arrears. The easiest way for you to pay your rent will be by Direct Debit or Standing Order; your Income Advisor can help you to set this up. 11

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13 How is my claim assessed and what is my Monthly Assessment Period? Your monthly assessment period is based upon the date of your initial claim. Every claim gets reassessed at the end of each monthly assessment period; the amount of Universal Credit you receive for that month is determined by your circumstances on that date. If you are working, the wages you have received during your monthly assessment period will be used to calculate your entitlement each month to Universal Credit. This will minimise the potential for any overpayments. Your income from your wages does not need to be reported unless you are self-employed; your wages information will be collected from HMRC. Claim cycle example Online claim Sunday 5th February. Claim starts Sunday 12th February (after 7 days waiting period). Monthly assessment period runs 12th to 11th of each month. Payment is made 7 days after the end of the monthly assessment period, on the 18th of each month. 13

14 What will happen during the 4 rent-free weeks? Freebridge Community Housing currently provides 4 nonpayment weeks, meaning that the cost of rent over 52 weeks is spread over 48 weeks. As long as a claimant doesn t have a change of circumstance, the amount of Universal Credit received to cover housing costs will be the same every month, regardless of the rent-free weeks. This means that the Universal Credit payment will be based on the total year rent divided by 12. Your monthly rent payment will be calculated across 12 equal monthly payments; this means you will pay the same amount in April and December as all other months in the year. The saving of the rent-free weeks will therefore be spread throughout the year. 14

15 How do I report a Change of Circumstances? All changes of circumstances need reporting to the DWP immediately, including stopping/starting work, change of address, rent charge and bank details. You will also need to report if you are too ill to work/seek work and/or meet your work coach. Changes to income do not need to be reported, unless you are self-employed or receiving cash in hand. All changes need reporting via the telephone to this is a Freephone number. Once you are on the full digital service, after November 2018, you will need to report your changes through your online Universal Credit account. All changes take effect from the beginning of the monthly assessment period in which your change occurs and not the actual date of the change. This may leave you worse off or better off depending upon the change and the date it occurs on. Always talk to your Income Advisor about what changes are occurring so they can advise how this will affect you. 15

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17 How will my non-dependent affect my claim? A fixed amount of per month will be deducted from your Housing Costs for each non-dependent who is living with you and is age 21 or over, regardless of their income. This is called a Housing Cost Contribution. There are some exceptions to this; for further information please speak to your Income Advisor. I have a spare bedroom. How will this affect my claim for Housing Costs? Just like with housing benefit, your housing costs will be reduced if you have a spare bedroom. There will be a 14% deduction if you have one spare bedroom. There will be a 25% deduction if you have two spare bedrooms. If you think you will struggle to cover this deduction from your housing costs, you can apply for Discretionary Housing Payment from your local council. Please talk to your Income Advisor for help and assistance and to complete a financial statement. 17

18 I am aged between 18 and 21. How will this affect me? When this area moves onto the Full/Digital service from November 2018, some young people claiming Universal Credit will not be able to make a new claim for the Housing Costs Element year olds who are affected will not be able to claim a Discretionary Housing Payment as no Housing Costs Element will be included when their Universal Credit award is assessed. There will be some exceptions to this please talk to your Income Advisor about this if you are under 22. I don t have a bank account. What can I do? Open a bank account. You might be surprised to learn that this is easier than you think. If you need any help or support with this please let us know as we can help you to open a bank account and/or provide advice regarding the ID that you will need. 18

19 What benefits are excluded from Universal Credit? Disability Living Allowance / Personal Independence Payment Child Benefit Carers Allowance Contribution-Based Jobseekers Allowance Contributory Employment and Support Allowance Council Tax Support Statutory Sick Pay Statutory Maternity Pay and Maternity Allowance Industrial Injuries Disablement Benefit Bereavement Benefits If you still have questions about Universal Credit, please call your Income Advisor on

20 FCH APRIL 2018 If you still have questions about Universal Credit, please call your Income Adviser on IF YOU NEED ANY HELP TO UNDERSTAND THIS LEAFLET PLEASE GET IN TOUCH Freebridge Community Housing Juniper House Austin Street King s Lynn Norfolk PE30 1DZ enquiries@freebridge.org.uk Main Switchboard Telephone: Office Opening Hours: 8:45am pm (Mon-Thurs) 8:45am pm (Fri) Bank Holidays, Saturday and Sunday Closed Out of Office Hours: The main telephone number ( ) will divert to our 24 hour emergency service.