Universal Credit

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https://www.gov.uk/universal-credit-toolkit-for-partner-organisations

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Simplifying the benefits system

• The existing benefits system is complex in its structure, administration and how the different qualifying conditions interact with each other.

• To simplify the benefit system Universal Credit has been introduced and provides a new single claim of means-tested support for working-age households who are in or out of work.

• This single claim removes the need to claim different means-tested benefits from different agencies.

. Universal Credit will replace; Jobseekers Allowance (IB) Employment and Support Allowance (IB) Income Support Housing Benefit Working Tax Credit Child Tax Credit

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What’s different about Universal Credit?

IT ENCOURAGES

WORK

IT’S LIKE WORK

IT’S ABOUT WORK

PAID MONTHLY

PAID DIRECTLY

CLAIMANT COMMITMENT –

LIKE A CONTRACT

IN AND OUT OF WORK

CLAIMANT COMMITMENT REQUIREMENTS

FULL TIME WORK SEARCH

EARNINGS, NOT HOURS A SIMPLE TAPER

SO BETTER OFF IN WORK

EASY TRANSITION UC TO WORK (AND

BACK)

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Universal Credit – one year on

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UC Claimant Journey – Pictorial Representation Customer Touch Points

Online/ UC Helpline

UC Service Centre

If the claimant has a change of

circumstance it is reported to the Service Centre. The claimant is

notified regarding any change to the

award of Universal Credit

The MOU scan the claim on to the Data

Repository System (DRS). Any evidence or correspondence sent in

separately by the Claimant creates a

CAMLite task for the agent in the SC. On

receipt of the task, the agent updates the UC

Portal. Once all evidence has been

verified, this triggers the processing of the UC

claim

The Jobcentre print the UC claim and obtain a

signature from the claimant. Any

additional information is gathered and the

Claimant Commitment (CC) is completed. The UC Portal is updated

and the claim documents and any supporting evidence are sent to the Mail Opening Unit (MOU)

On receipt of the online UC claim, the Service Centre (SC) contact the Claimant

by telephone to arrange an interview at

the Jobcentre. An SMS text message is issued to remind the

claimant about their appointment

Claims to Universal Credit (UC) are made on-line. If a

claimant requires assistance, the Universal Credit Helpline

is available.In exceptional

circumstances, claims can be made by telephone or

face to face

Business Process

I receive a telephone call inviting me to

attend an interview in

the Jobcentre

I notify the UC Service Centre if there is a change

in my circumstances

I receive a text message to

remind me about my interview at the Jobcentre

I receive my UC decision letter

which includes my payment schedule if appropriate. I am also advised about

my on-going responsibilities as agreed in my CC

I am asked to attend the Jobcentre

I receive a notification to advise me that my Universal

credit entitlement has

changed or ceased

I get information

or advice about how to

claim Universal

Credit (UC)

I make my claim on-line. If

I need help, I can telephone the Universal

Credit helpline for assistance

I attend my interview in the Jobcentre and take any evidence that has been requested. I sign my printed claim and

complete the Claimant Commitment (CC)

Jobcentre

UC Service Centre Claims

Closure

The Claimant is invited to attend the Jobcentre to

undertake specific work related

activity as agreed in the CC.

There is on-going interaction at the

JC

I send any additional missing

evidence to the Mail Opening Unit

(MOU)

UC Service Centre

Jobcentre

I attend the Jobcentre

and engage in work related

activity

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01/01Date of Claim

+7 days

1st UC PaymentCalc/notificationto claimant:08/02

1st UC PaymentReceived by Claimant: 14/02

Regular UC Assessment Period

2nd UC PaymentCalculation:08/03

2nd UC PaymentReceived by Claimant: 14/03

An example claim

07/02 07/0308/01 Start Assessment

7 Waiting Days

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Payment Advances • Universal credit payments will be issued monthly through the BACS system.

• New claimants and those transitioning from legacy benefits may be eligible for an advance of their indicative award to help them manage during the first assessment period if they need it.

• For UC Advance (New Claim) the claimant will be advised that if they can't manage they can claim an advance. They would need to repay the advance over the next 6 months.

• For a UC Advance (Transitional) the claimant will have to ask for the advance within one month of moving across to UC.

• These UC advances will provide an interest-free lending facility for claimants who find it difficult to access mainstream credit, and could offer an alternative to high cost borrowing.

• A claimant can request an advance of up to 50% of their indicative UC award.

• The UC Advance (New Claim) can be claimed up to 21 days from the date of claim during the first month and will be issued via BACS after 3 days.

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Alternative Payment Arrangements

• Alternative Payment Arrangements.

• For a minority of claimants, alternative payment arrangements may be required; these might include: – paying the rent directly to the landlord.– making more frequent than monthly payments.– splitting the payment within the household.

• We will also have the option to make rent payments direct to the landlord if a claimant reaches a certain level of rent arrears.

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Alternative Payment Arrangements – Consideration Factors Tier One factors – Highly likely / probable need for alternative payment arrangements

Drug / alcohol and / or other addiction problems e.g. gambling

Learning difficulties including problems with literacy and/or numeracy

Severe / multiple debt problems

In Temporary and / or Supported accommodation

Homeless

Domestic violence / abuse

Mental Health Condition

Currently in rent arrears / threat of eviction / repossession

Claimant is young either a 16/17 year old and / or a Care leaver

Families with multiple and complex needs

Tier Two factors - Less likely / possible need for alternative payment arrangements

No bank account

Third party deductions in place (e.g. for fines, utility arrears etc)

Claimant is a Refugees / asylum seeker

History of rent arrears

Previously homeless and / or in supported accommodation

Other disability (e.g. physical disability, sensory impairment etc)

Claimant has just left prison

Claimant has just left hospital

Recently bereaved

Language skills (e.g. English not spoken as the ‘first language’).

Ex Service personnel

NEETs - Not in Education, Employment or Training

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Alternative Payment

Arrangements

Moneyadvice

Financial products

Claimants managing their

money

Personal Budgeting Support - Overview

Splitting the payment within the

household

Basic Bank Accounts from

major banks from end 2015

Made by UC decision maker via PBS process

1.3 million potential UC claimants do not use a transactional bank

account to manage benefit payments

Personal planner on GOV.UK

Available to anyone on UC

Credit Union jam jar accounts

More frequent than monthly payments

Paying rent direct to landlord

Part of work coach role

Face to Face and online tool

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Universal Credit and Housing Costs

Registered Social Landlords(RSL’s)

•UC brings significant changes to RSL’s, currently they receive over 98% of HB payments direct, under UC the monthly payment will be sent direct to claimants.

•RSL’s have been preparing their tenants for these changes and making sure they understand their responsibilities and the support available.

•We introduced data sharing legislation in January 2015 to help manage claimant payments.

•If rent arrears occur an Alternative Payment Arrangement can be applied for. Arrears can also be deducted from UC.

•We developing closer working relationship with landlords.

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Universal Credit and Housing Costs

Private Landlords

•UC changes do not affect Private Landlords as significantly as RSLs as currently they only receive payments direct to them when the claimant is vulnerable. Around 30% of current Housing Allowance payments in the private sector are paid to the landlord.

•Closer relationships with tenants may be needed to support them

•Private rented sector HA cases are paid 4 weeks in arrears and under UC this will be monthly.

•Landlords can request an alternative payment arrangement when a rent arrears ‘ trigger’ of two months has been reached. Payments can then be switched to a managed payment to the landlord.

What is ‘About Universal Credit’?

'About Universal Credit‘ is the help section of the online claim

'About Universal Credit' was created to get the right information, to the right people, at the right time.

It is designed so people can access information about Universal Credit in one place including policy and guidance.

It is an internet-based system.

'About Universal Credit' will be similar to most internet web pages.

It was created and will be maintained by one team within DWP called the Knowledge Management Team.

Link attached here

If you wish to go online to view the actual claim process, here are some ‘dummy details’ that you can use. As long as you do not click to submit the claim on the final screen, the process will not be recorded as an actual claim, however in the event that the claim is submitted in error, any claim made using the dummy details will be removed.

NINo: AB000001A

Address 103 Old Street

Ashton

OL6 6BJ

Bank Details Royal Bank of Scotland

Account Code 12749163

Sort Code16 22 21

https://www.gov.uk/apply-universal-credit

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Useful links for stakeholders

• An introduction to Universal Credit video http://youtu.be/E7GUu7Xa7Nw

• Universal Credit pages on GOV.UK https://www.gov.uk/universal-credit

• A toolkit for Partners https://www.gov.uk/universal-credit-toolkit-for-partner-organisations

• The Claimant Commitment

https://www.gov.uk/universal-credit-toolkit-for-partner-organisations#the-claimant-commitment

• A Personal Planner to help claimants prepare for Universal Credit http://ucpp.dwp.gov.uk/universal-credit-preparation/

• A pictorial representation explaining Better off in Work https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/301408/how-uc-tops-up-earnings-to-make-work-pay.pdf

• Budgeting help and support https://www.gov.uk/government/publications/budgeting-your-universal-credit-quick-guide

• Operating Guidance for Personal Budgeting Support & Alternative Payment Arrangementshttps://www.gov.uk/government/uploads/system/uploads/attachment_data/file/181399/personal-budgeting-support-cover-note.pdf

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/181400/personal-budgeting-support-guidance.pdf

• The Local Support Services Frameworkhttps://www.gov.uk/government/uploads/system/uploads/attachment_data/file/181395/uc-local-service-support-framework.pdf

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Useful links for stakeholders

• The Money Advice Service https://www.moneyadviceservice.org.uk/en

• A Money Advice Service Universal Credit video https://www.moneyadviceservice.org.uk/en/videos/get-ready-universal-credit

• Making work pay comparison graph explaining how Universal Credit compares to the current system when claimants increase their hours https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/301411/how-uc-helps-to-make-work-pay.pdf

• A quick guide for employers about Universal Credit and RTI https://www.gov.uk/government/publications/universal-credit-works-for-employers-and-claimants-quick-guide

• HMRC and RTI http://www.hmrc.gov.uk/payerti/getting-started/paye-basics/rti.htm

• Eight Ways Universal Credit can help your businesshttps://www.gov.uk/government/uploads/system/uploads/attachment_data/file/307091/how-uc-can-help-your-business.pdf