Making Money Count Conference 15th October 2015

Dave WintertonDWP Partner

Support Manager

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Universal Credit - What it means for claimants• Universal Credit simplifies the benefits system.

– Will replace the six main working age benefits with one payment

– It removes the requirement to provide similar information to different organisations. (HMRC, LA’s and DWP)

• Universal Credit is more flexible.

– Combines in and out of work benefits making it less risky for claimants to start and progress in work.

– No 16 hour rule and no limits on the number of hours someone can work.

– Pay is taken into account in real time via the HMRC PAYE interface.

– Claimants will not have to re-apply for Universal Credit if their circumstances change.

– When someone moves off Universal Credit they can resume their claim easily should circumstances change within 6 months.

Universal Credit

Income basedJobseekers Allowance

Income based Employment and Support

Allowance

Working Tax

Credits

Child Tax Credit

Income Support

Housing Benefit

Universal Credit – one year on

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Universal Credit - What it means for claimants

• Universal Credit – makes work pay.

Benefit Calculators are available on the DWP website at Gov.UK

Follow this link to access the Universal Credit calculator:

Benefits calculators - GOV.UK

Claimants will always be better off when they start work or increase their hours

Follow this link to access the Universal Credit “Better Off” calculator:Benefits calculators - GOV.UK

Universal Credit – National Expansion

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Universal Credit roll-out

• Jobcentres in the North West began taking claims from single non-householders on 23 June 2014. Claims from couples began on 30 June 2014 and families from 24 November 2014.

• Universal Credit is now rolling out to single non-householders across the country from February 2015

• The last new claims to legacy benefits will be accepted during 2017. Following this the people on the remaining legacy claims will progressively decline, and the Department will migrate the remaining claims to Universal Credit.

• The current business case assumes for planning purposes the bulk of this activity will be complete by 2019.

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UC Roll-out to East Anglia Jobcentre Plus

Tranche 4 – December to March 2016

14/12/15 Peterborough (Peterborough CC LA)

29/02/16 Cambridge (Cambs C C, East Cambs DC & South Cambs DC LA)

29/02/16 Ely (Cambs C C, East Cambs DC & South Cambs DC LA)

29/02/16 Huntingdon (Huntingdon DC LA)

14/03/16 Wisbech (Fenland DC LA)

14/03/16 Kings Lynn Kings Lynn DC, West Norfolk DC LA

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Universal Credit – Next Steps

Claimant

• When Universal Credit is rolled out in Cambridgeshire it will be limited to new claims from single, unemployed claimants who would have claimed Jobseeker’s Allowance

• Pilots are currently running in some Jobcentres taking claims from couples and families but the timescale for rolling out such claims nationally has not been decided

• Fenland District Council will be leading on the Local Partnership Delivery Agreement

• Today is your opportunity to feed in your ideas, concerns and support that you can give.

Personal Budgeting Support

REQUIREMENT FOR A PERSONAL BUDGETING

STRATEGY IS DRIVEN BY THESE CHANGES

Personal Budgeting Support - Context

Housing costs direct to tenant

Single payment to household

Monthly Payment

We want to help people to be able

to manage their own finances successfully,

whether they arein or out of work

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Personal Budgeting Support in Practice

+7 days31/01 28/02

Regular UC Assessment Period

(35 days)

1st payment:£1000

2nd payment:£1000

Standard Monthly Payment

Payment minus repayment of UC advance(new claim)

UC Advance(up to 50%)£500

£926.67 £926.67

(3 days)

Process of a new claim showing advance payments.Based on an indicative claim of £1000 pcm

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Universal Support – delivered locally

• Universal Support – delivered locally provides support to those who need additional help in making and managing a claim for Universal Credit

• It is recognised that individual local needs can best be met through an integrated and localised support service. This is reflected in the partnership working between DWP, local authorities and partners such as CAB, Credit Unions, social landlords and registered charities

• Trials have taken place to test different models of providing support to claimants who may face challenges in accessing or managing Universal Credit. The trials were based on a partnership between Local Authorities and Jobcentre Plus.

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Lessons Learned

Claimant

• The level and quality of advisers is critical

• Strong partnerships need to be developed between Jobcentre Plus, Local Authorities, Housing Associations and Voluntary Services often building on existing arrangements.

• Some claimants are reluctant to engage in budgeting support and are reluctant to disclose financial needs at their initial interview.

• There needs to be a clear referral process in place to enable claimants to access budgeting support.

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Alternative Payment Arrangements – Key Findings

Claimant

• Under DPDP the fears raised by participating landlords that rent arrears would increase dramatically did not happen however, much of the arrears were accrued during the first few months following the introduction of UC

• Direct payment therefore had a financial impact on landlords but much of this burden was borne in the first few months following migration to UC

• Whilst the decrease in payment rates is less significant than initially feared, it is recognised that this could still pose significant cash flow problems for some landlords, particular those smaller ones

Source: Direct Payment Demonstration Project Final Report - December 2014

Questions ?