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Welfare Reform

Universal Credit Overview Corinne Gregory LHC Group Partnerships Team **The content in this presentation is correct as of July 2017 Information contained within may be subject to change**. Welfare Reform.

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Welfare Reform

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  1. Universal Credit Overview Corinne GregoryLHC Group Partnerships Team**The content in this presentation is correct as of July 2017 Information contained within may be subject to change**

  2. Welfare Reform Welfare Reform has introduced a simpler, fairer benefits system that helps ensure people are better off in work than on benefits Prepare the long-term unemployed for the world of work Help to ensure people are better off in work than on benefits Ensure people receive a fairer pension and are encouraged to save for retirement Provide unconditional support for those who need it Support families to stay together

  3. Universal Credit - Overview UC simplifies the benefits system Replaces the six main working agebenefits with one payment Removes the requirement to provide similar information to different organisations (HMRC, LA’s and DWP) UC is more flexible Combines in and out of work benefits, so less risky for claimants to start & progress in work No 16 hour rule / 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 Housing Benefit Income based Jobseekers Allowance Income based Employment and Support Allowance Universal Credit Working Tax Credits Child Tax Credit Income Support

  4. Support for those that need it to manage the changes Universal Credit brings: We want to help people to manage their own finances successfully, whether they are in or out of work…… Single payment to household Monthly Payment Housing costs direct to tenant Universal Credit Overview

  5. Making Work Pay Universal Credit helps to ensure people are better off in work than on benefits by: • Introducing a generally more generous work allowance • Removing the limit to 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 • Working families on Universal Credit can claim up to 85% of actual childcare costs up to a monthly cap

  6. What is Different about UC? 6

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

  8. Universal Credit - Elements Standard Allowance (Single or Couple) + Housing Element (renters/owner occupiers) + Carer Element + Child Element + Disabled Child Element + Child Care Element (in work) + Limited Capability for WRA Element OR Limited Capability for Work Element

  9. Universal Credit Calculation Process Check eligible to claim UC Under £16,000 Capital Aged 18+; under PC age; not in full time education; meets immigration and residence rules Work out Maximum Amount Standard Allowance + Elements The Means Test Take Away any relevant income

  10. Universal Credit Calculation Process Deduct any sanctions or penalties Add any Transitional Protection Adjustments to the UC award Apply the Benefit Cap Equals UC award

  11. Universal Credit live service claimant journey 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 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 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 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 undertake my agreed activities. I can get advice on jobseeking, budgeting and going online from my work coach. If a change in my circumstances means my Universal Credit payments change, I receive a letter confirming the new details. I make my claim online at GOV.UK. If I need help, I can telephone the Universal Credit helpline for assistance. I regularly visit the jobcentre where my work coach and I discuss the actions we’ve agreed in my Work Plan. I receive an email (or text message if no email address) to remind me about my interview at the jobcentre.

  12. Universal Credit – Housing Cost Journey Customer Touch Points Day 39+ I receive a notification to advise me that my Universal Credit housing entitlement has changed or ceased Day 5+ I send any additional missing evidence to the Mail Opening Unit (MOU) Day 5+ I receive my UC decision letter which includes my payment schedule, including Housing Cost portion if appropriate Day 39+ I notify the UC Service Centre if there is a change in my housing circumstances Day 1-2 I complete the housing section questions online, by phone or face to face Day 4/5 I receive an email/text/letter to remind me about my appointment and to bring my housing evidence Day 5 I attend my interview in the Jobcentre and take the housing evidence that has been requested Day 35 - 38 Payment received up to 7 days after end of first assessment period UC Service Centre/MOU Capita / UC Service Centre UC Service Centre Jobcentre Local Authority Capita Agent On receipt of the online UC claim, I contact single claimants by telephone to arrange an interview at the Jobcentre UC Service Centre Account Developer (AD) I contact the couple & families making a claim to UC by telephone to arrange an interview at the Jobcentre. Capita Agent / UC Service Centre Account Developer (AD) I inform them to bring their Housing evidence i.e. rent book, tenancy agreement. (In date or updated rent statement referring to the Knowledge Management Acceptable Housing Evidence guidance) Personal and Account Support Agent (PASA) I conduct the interview with the claimant, gather the appropriate housing evidence and begin the Housing Benefit Migration process. I may also consider if Managed Payment to Landlord (MPTL) and Personal Budgeting Support (PBS) is appropriate. I update the UC Portal and ensure the claim documents and any supporting evidence are sent to the Mail Opening Unit (MOU), completing a cover sheet to indicate that a task is required for the Housing AD at the Service Centre. I may have to update the Local Council Tax Reduction (LCTR) interest in the UC system where the Local Authority (LA) states that they have a claim and need the data sharing to start. I do not update the Housing Verification in the Portal. Housing Account Developer (AD) I action the task set by the MOU to process the housing evidence and update the housing verification in the portal. If SRS I issue a UC179 to the Landlord. I then make/record the decision on MPTL if required. Account Developer (AD) If required I complete the Housing Benefit Migration (UC413) for live HB claims and email the appropriate LA. Once all evidence has been verified, this triggers the processing of the UC claim. I process any returned UC413 (LA) – New Claim – Housing Benefit Migration forms and update the LCTR interest on system, if required. UC Service Centre Telephony Agent (TA) If the claimant has a change of circumstance in their housing they must report it to me at the Service Centre. I then notify the claimant of any change to the award of Universal Credit including housing entitlement and any impact on their Claimant Commitment. They process the UC413 (LA) – New Claim – Housing Benefit Migration form.

  13. Universal Credit – National Expansion

  14. Universal Credit Full Service (UCFS) • What is UCFS? • UC Full Service is the “End State” for Universal Credit • A digital service for all claimants who would have previously claimed one of 6 included benefits: JSA, ESA, IS, Housing Benefit, Working Tax Credits, Child Tax Credits • Built and designed using Agile methodology; meaning small, frequent updates and enhancements moving us slowly towards a fully featured system • DWP are rolling it out slowly across the country, increasing the number of claimants as we increase the functionality of “The Build” • LHC have been very much at the forefront of the UCFS roll-out: • South London being the first district to go live • Sutton was the first site to deliver UCFS in November 2014 • UCFS rollout until June 2018

  15. Universal Credit Full Service (UCFS) • What’s different? • Claimant’s point of view: • They have a fully on-line service with their own account allowing them to: • see when and how much they will paid • advise of changes of circumstances • converse with their work coach etc. • The onus is on the claimant to take ownership of their claim and their job search; and to enter into a coach/athlete relationship with their Work Coach so that we no longer advise them what to do but coach them to think in the right way to change their own lives and become independent of benefits

  16. Universal Support Delivered Locally for Vulnerable People & Personal Budgeting Support

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

  18. Supporting Claimants with Complex Needs

  19. Assisted Digital Support

  20. Personal Budgeting Support

  21. Alternative Payment Arrangements For a minority of claimants, alternative payment arrangements may be required; these might For a minority of claimants, alternative payment arrangements may be required; these might include - include: We will also have the option to make rent payments direct to the landlord if a claimant reaches a certain level of rent arrears.

  22. Alternative Payment Arrangements

  23. Alternative Payment Arrangements

  24. Universal Support – Delivered LocallyLocal Delivery Partners: What we are hoping to achieve The real purpose of the partnerships approach is a joined up “coherent claimant journey” for those with complex needs; from benefits dependency to independence and, where appropriate, work

  25. Questions?

  26. Universal Credit - Conditionality Groups

  27. Universal Credit - Conditionality Groups

  28. Migration Definitions • Claimants currently claiming Income Support (IS), Jobseekers Allowance (Income Based) (JSA(IB)), Employment & Support Allowance (Income Related) (ESA(IR)), Working Tax Credit (WTC), Child Tax Credit (CTC) and Housing benefit (HB) will remain on their existing benefits until such time that their claim can migrate to Universal Credit. These benefits will be referred to as Legacy benefits. 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. Type 1 Managed Migration – This occurs when DWP will initiate the transfer of an entire household from Legacy benefits to one Universal Credit entitlement. Type 2

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