Universal Credit in the North West

Sue Ramsden, Policy Leader, National Housing Federation

Universal Credit overview

Universal Credit

Culture change

Single payment

Monthly payment

Direct to tenant

Online

Supporting work

Conditions and

sanctions

Housing Benefit Under Universal Credit

Non-dependant deductions (NDD): six separate rates varying by income and under 25s on benefit are exempt.

One, flat-rate Housing Cost Contribution (HCC) per month. All under 21s are exempt from HCC.

Non-dependants: couples get one room between them. They pay the NDD unless both are exempt.

Each adult non-dependent gets a room. Each pays the HCC unless exempt.

Lodgers get a room but income is taken into account and deducted pound for pound from benefit apart from first £20.

No room allowance so there may be a deduction for the size critera but any income from lodgers is disregarded.

In non-couple joint tenancy cases the deduction is apportioned between the joint tenants

Bedroom tax not applied in non-couple joint-tenancy cases.

Protection from size criteria if member of the household dies for up to 52 weeks.

Benefits run-on for 3 months (ie household UC continues to be calculated in the same way as prior to death) .

13 week protection where the tenant could previously afford the rent and Housing Benefit has not been claimed in the last 52 weeks.

Size criteria applies immediately.

Alternative payment arrangements

Managed payment (to landlord)

Split payment

More frequent payment

UC payments

Universal Credit claimants will: • ‘Set’ pay date each month• Receive their initial payment seven days after the end

of their assessment period• From that point onwards they will receive their payment

on the same date each month, with a cut-off date to notify DWP of changes of circumstance

• If the pay day falls on weekends or bank holidays, the pay day will be advanced to the nearest working day

• Amount will not vary according to number of days in month

Assessment period

Universal Credit entitlementU

C m

axim

um

am

ou

nt

Standard allowance

+ Housing element

+ Child Element / Disabled Child Additions

+ Childcare element (for those in work)

+ Limited Capability for WRA Element or Limited

capability for work element

+ Carer Element

UC

En

titl

emen

t UC maximum amount

– applicable capital

– applicable income

– earnings (taking into account disregards and

tapers)

Housing element

Liable rent and eligible

service charges

MinusAny under-occupation deduction

Minus

any Housing Cost

Contribution (HCC) from

non-dependants

For social sector tenants the housing element will be:

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.

What will the tenant need to bring?

Tenancy agreement

Recent rent statement including service charge eligible for UC

Universal Credit timetable

April 2014• UC live in 10 sites

Summer 2014• Extended to couples in all live areas July 28th

• End August: remaining North West roll out dates

Autumn 2014• Roll out to claimants with children

2016/17• Migration of existing claims

Gareth Bevan, Policy Officer, National Housing Federation

Universal Credit

Twelve months in: learning from the Pathfinders

Structure of presentation

• Scope of the research• How to prepare your organisation• Key issues emerging from UC Pathfinders in the

North West• Recommendations to DWP• Top tips• What next?

Scope of the research

• Research methodology

• Solely evidence from associations• Anecdotal• Limited claimant numbers

Preparations

• Communication, research and training

• Products and services• Preparing staff• Changing internal

processes

Emerging issues…

Application

and interview

Emerging issues…

Vulnerabilities

and local support

Emerging issues…

Benefit advances

Emerging issues…

Alternative Payment Arrangements

Emerging issues…

Relationships

Emerging issues…

Data sharing

Recommendations

• Save function• Confirmation• PBS• APAs• Data sharing

Top tips

• Relationships• Regular meetings• LSSF positioning• Processes

What next…?

• Rollout plans• Ongoing research• Member engagement

Contact

Sue Ramsden

sue.ramsden@housing.org.uk

0207 067 1080

Gareth Bevan

gareth.bevan@housing.org.uk

0161 873 9449