Universal Credit: Spalding Stakeholders Event 31 st May 2018. Felicity Cooper & Graham Metcalfe DWP Partnership Managers 1
Welcome & Introductions: Paul Carr Customer Service Lead for Spalding Jobcentre. 2
3 Domestics, Event Structure & Timings
Topics Session 1: UC Background & Full Service System: Overview & Background to UC Full Service Eligibility and the UC New Claim Journey Making a Claim UC Video Conditionality Groups Making Work Pay Break Session 2: Payments, Verifications, and Complex Needs Support Waiting Days Advances Digital Support Personal Budgeting Support and Alternative Payment Arrangements Housing Childcare Costs Care Leavers Self Employment Additional Resources & Contacts 4
Universal Credit Full Service Universal Credit Full Service (UCFS) is transforming the benefit system and brings with it a complete culture change - both for the claimant and for ourselves. is now a fully digital interactive service that allows claimants to take personal responsibility for their claims and information. The digital platform will give ownership to those who are able to be self sufficient - encouraging aspiration, personal responsibility and managing of their household income. The system will also give the ability for customers to access the online service via computer, tablets, or smart phones 24 hours a day, 365 days a year in a way that best suits them. Rewarding work This, in turn means that Work Coaches are able to concentrate their time on those who need it the most, supporting them to identify their more complex barriers, and to develop the skills and support mechanisms required to move forward towards a sustainable household income. Supporting aspiration Helping those who need it most Encouraging responsibility Making work pay 5
What is different about Universal Credit? Monthly Payments: Encouraging managing monthly budgets, making direct payments for rent and other costs, and replicating the working income. Universal Credit is designed to encourage, support and make households financially better off through work. A simple Earnings Taper: This makes it easier to start to work, as the taper Is applied to the amount of earnings, not the number of hours worked which means people are financially better off in work. Easier Transitions: Claims will no longer close once a claimant works 16 hours, but will be assessed each month on their earnings and adjust accordingly. It will also give consistency for any changes in circumstances. Claimant Commitment: This acts like a contract setting out tailored requirements and actions required in order to receive continued payment. 6 6
Universal Credit: The Journey We are here Apr 2013 UC opens for single unemploy ed people. Known as live service Nov 2014 full service starts testing with digital account for information, reporting changes and support. May 2016 full service rollout begins at 5 jobcentres a month. Now Dec 2018 Full Service rollout. Live Service stops taking new claims from December 2017. 2020 onwards Migration of legacy benefits begins. Completion It s essential for support to be in place for those who may struggle with the changes Universal Credit brings. Our full roll out schedule for all Jobcentres to receive Universal Credit Full Service can be found at : http://bit.ly/ucrollout
Universal Credit Roll Out Schedule 8 Universal Credit Full Service is being rolled out in a phased approach across the country., by Jobcentre Boundaries. Locally, Jobcentres go live with Universal Credit Full Service & begin to take Universal Credit claims for NEW claims to benefit on: Stamford & Grantham: 18 th October 2017 Peterborough: 15 th November 2017 Lincoln: 7 th March 2018 Newark: 9 th May 2018 Skegness: 13 th June 2018 Spalding: 11 th July 2018 Gainsborough, Boston, Louth & Wisbech : 12 th September 2018 Sleaford and Kings Lynn: 14 th November 2018. The aim is for all Jobcentres to be live by the end of December 2018 The full migration of all benefit claimants to Universal Credit is expected to begin from around 2020 through to 2022.
Universal Credit Full Service who can claim? Housing Benefit Tax Credits Income based ESA Income Support Income based JSA UC full service will be available for all Working Age Claimant groups from the start and will initially be available for claimants making a new claim or certain changes in circumstances. Exceptions: A person in a UC full service area will need to claim Legacy Benefits where: o The person is living in Specified or Temporary Accommodation they will claim Universal Credit (for personal allowance) & Housing Benefit. o The persons partner is of state Pension Credit Age - they may choose to claim Universal Credit, or Pension Credit & Housing Benefit as a couple. o Households with more than two dependant children will need to claim legacy benefits. o Households The in service receipt will of 1 initially element be of available Tax Credits to & claimants they wish making to claim a the other element, new but no claim, other or Legacy certain benefit, changes may in remain circumstances. on Tax Credits. 9
Movement to UC Full Service for current customers. Existing Universal Credit Live Service claimants will start to transfer onto the full service approximately 3 months after offices have transitioned to full service. The transfer process is managed by Universal Credit, and the claimant does not have to do anything until they are asked. Claimants currently claiming Income Support, Jobseekers Allowance (Income Based), Employment & Support Allowance (Income Related), Working Tax Credit, Child Tax Credit and Housing benefit will remain on their existing benefits until a managed migration is started, or will make a new claim to Universal Credit where a Natural Migration Trigger occurs. Type 1 Type 2 Natural Migration This occurs when a claimant reports a natural migration qualifying change of circumstance to their Legacy benefit, for example when moving from sick to out of work or claimant is no longer a full time carer. As Universal Credit is a household benefit, this would also trigger the closure of all legacy benefits that Universal Credit is replacing for others in the household. Managed Migration This occurs when DWP will initiate the transfer of an entire household from Legacy benefits to one Universal Credit entitlement. 10
Natural Migration Triggers Examples Move from out of work to in work. Current JSA(IB)/ IS claimants, or their partners, who increase their working hours or start work such that they no longer meet the conditions for JSA/IS are no longer able to make a new claim to Tax Credits if they live in a Universal Credit Full Service area and should be advised to make an online claim to Universal Credit. Those with an existing Tax Credit claim can continue to claim Tax Credit Move from in work to out of work. Current WTC claimants whose hours reduce to less than 16 hours per week are no longer able to make a new claim to JSA(IB) or IS if they live in a Universal Credit Full Service area and should be advised to make an online claim to Universal Credit. Move from out of work to sick Current JSA(IB)/ IS claimants are no longer able to make a new claim to ESA(IR) if they live in a Universal Credit Full Service area and should be advised to make an online claim to Universal Credit. Move from sick to out of work Current ESA(IR) claimants are no longer able to make a new claim to JSA(IB) or IS if they live in a Universal Credit Full Service area and should be advised to make an online claim to Universal Credit Move from sick to in work (or permitted work becomes permanent) Current ESA(IR) claimants are no longer able to make a new claim to Tax Credits if they live in a Universal credit Full Service area and should be advised to make an online claim to Universal Credit. Those with an existing Tax Credit claim can continue to claim Tax Credit Move from in work to sick (reduction in hours due to sickness) Current WTC claimants are no longer able to make a new claim to ESA(IR) if they live in a Universal Credit Full Service area and should be advised to make an online claim to Universal Credit. Household becomes responsible for a child for the 1 st time. Claimants living in a Universal Credit Full Service area are no longer able to make a new claim to Tax Credits and should be advised if they wish to claim for additional financial support because they have a child living with them to make an online claim to Universal Credit. Those with an existing Tax Credit claim can continue to claim Tax Credit Claimants separate For example where a current joint tax credit claimants who separate and live in a Universal Credit Full Service area are unable to make a new claim to Tax Credits as a single person. Claimants should be advised to make an online claim to Universal Credit if they continue to require additional financial; support if they have (a) child(ren) living with them or are IS lone parent child under 5 reaches age 5 or permanently leaves household Current IS claimants are no longer able to make a new claim to JSA(IB)/ ESA(IR) when their award to IS ends if they live in a Universal Credit Full Service area and should be advised to make an online claim to Universal Credit. HB claimant moves from a UC Live Service LA into a UC Full Service LA Existing HB claimants who move into a Universal Credit Full service area LA are no longer able to make a new claim to HB in the new LA area and should be advised if they wish to continue to obtain financial support with their rent to make an online claim to Universal Credit. Stopping an existing claim when a claim to Universal Credit-Full Service is made If a new claim to Universal Credit Full Service is made and there is a current JSA(IB)/ ESA(IR)/ IS/ HB or Tax Credits claim. Universal Credit Full service will contact Benefit Centres/Local Authorities and/or Her Majesties Revenues and Customs to stop the existing claim.
UC Full Service Video https://youtu.be/4 WgJU8Y_bQg 12
Universal Credit Full Service how it works. Universal Credit full Service is transforming delivery providing the claimant with access to all of their data via a secure online account. o o o o o o Customer s can access all of their account whether they are using a computer, tablet, or smartphone device. They can upload documents directly to the system for their Work Coach or Service Centre. They can see when their next payment is due, how much it will be, and a full breakdown of the different components. Changes in circumstances can be input directly to their UC account by the customer. Claimants can interact directly with their Coach or the Service Centre via their journal and vice versa where they require support or have a query. A text or email will be sent to alert the customer when a new entry has been put into their journal. Where there is a specific action which requires completion, this will show in their To do list. 13
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Conditionality Groups The conditionality group that a claimant is placed in will determine what they need to do to find work (if this is appropriate), what is required of them in relation to their Universal Credit payment and the activities agreed to as part of their claimant s commitments. The allocation to a group is dependent on the individual's circumstances but it can also be affected by the individual s or household's overall earnings. There are four legal conditionality groups: All Work-Related Requirements Work Preparation Requirements Work-Focused Interview Requirements only No Work-Related Requirements There are different regimes within each of these groups. 15
Universal Credit - making work, and more 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. The Universal Credit taper means that financial support is withdrawn at a consistent and predictable rate, meaning claimants can clearly understand the advantages of work 16
Example: James, Single Claimant aged over 25 James is single, over 25, and currently unemployed. James is receiving the Standard Allowance for a single person aged 25+ = 317.82 Plus, housing element of 261. His Universal Credit payment 578.82 17
James, Single Claimant over 25 James starts work and brings home 300 per month. A taper of 63% is applied to James earnings. 63% of 300 = 189 Personal allowance: 317.82-189 = 128.80 New Income: 128.80 (UC Personal Allowance) + 261 (Housing element) + 300 (Wages) New Income = 689.80 Old Income + 578.82 110.98 better off in work. 18
Break Following the break, we will be covering: Payment Timescales The various support mechanisms available to our customers. Advance Payments Housing Costs Alternative Payment Arrangements. Complex Needs Support 19