Universal Credit Third Sector Forum - PowerPoint Presentation

1. Universal Credit Third Sector Forum14th August 2018

2. What is Universal Credit? Universal Credit is a means tested benefit that will eventually replace all of these benefits Income Support(ib)JSA(ir)ESAChild tax creditWorking tax creditHousing Benefit(Known as the Legacy benefits)

3. Universal Credit: Full Service Dates for introduction of full service UC in Glasgow jobcentre plus areas 19 Sept 2018 Govan 26 Sept 2018 Laurieston and Newlands 31 Oct 2018 Partick and Springburn 5 Dec 2018 Drumchapel, Shettleston and Castlemilk No new claims for legacy bens to be made from date of full service UC (Exception to above rule if claimant has more than 2 children born before 6 April 2017 then claimant still claims legacy benefits i.e. ESA/HB at least until 31/1/19) If new claim for full service UC made then existing legacy benefit claims closed and all rolled into UC Migration of existing ben claimants mid 2019 – 2023

4. Universal CreditUC is paid as a single monthly payment including hsg costs Can be varied using system known as Alternative Payment Arrangements The first payment of UC is usually 1 month and 7 days after claiming (an initial 7 day waiting period dropped 14th 2018) If as a result of delay a claimant is likely to suffer hardship a UC Advance can be paid (needs to be re paid and claimant needs to show are in financial need)Work Search and Work availability requirements (From 11th April 2018)Switched off for up to two periods of 14 days in 12 month rolling period for sicknessHousing benefit award to continue for a period of two weeks beyond the day on which the person becomes entitled to universal credit.

5. How the claiming and payment process is meant to work Begins on-line (date of claim) Full service the claimant needs to contact local jobcentre within 7 days to make appointment with work coach Agree claimant commitment (when claiming as a couple each should have a claimant commitment interview)Benefit awarded First payment One month plus 7 days after claiming (waiting days rule which added a further 7 days onto period before payment abolished 14 Feb 2018)

6. Claiming UC Having created an online account The account/journal should be where a claimant keeps the DWP aware of their situation, record any work searches, job applications, report changes etc. DWP will also use the online/journal UC account to notify claimants of any appointments or what they need to do to maintain their claims Having made the claim a claimant will need to contact local jobcentre within 7 days to make appointment with work coach for interview At this stage the claimant will need to complete a claimant commitment document which is a record of claimants responsibilities for award of UC

7. How to claim Universal CreditUniversal Credit claimants must normally be made on-line https://www.gov.uk/apply-universal-creditThere is a UC helpline to assist with this Telephone 0800 328 9344 Textphone 0800 328 1344 DWP also highlighting home visiting service. Have the information needed to handNational insurance number(s), Bank details, rent agreement, income, savings, capital, earnings, child benefit reference numbers, childcare provider reference and costs.DWP suggest it should take 20 to 40 min to complete.

8. How to claim Universal CreditTelephone claims can be made in certain circumstances ‘A claim for Universal Credit may be made by telephone call to the telephone number specified by the SOS if the case falls within a class of case for which the SOS accepts telephone claims or where, in any case the SOS is willing to do so. UC(Claims and Payments) Regulations 2013 Reg 8(2).This continues to be problematic with people being refused the opportunity to make the claim. Recent example of person being detained in hospital - now resolved claim now made by telephone and will be V by DWP Visiting Officer.

9. UC: At the interview stage After claiming you receive an email/text inviting to jobcentre interviewWhere need to agree a document called a claimant commitment (if do not agree this you will receive no monies)This list’s what’s required of claimant in looking and preparing for work In addition there are also identity requirements at interviewOfficially four forms of identification Photo ID (?), Two forms of official ID (birth certificate, NI card, P60 etc) and Proof of address Other things to bring include proof of housing costs and proof of earnings Claimants should take whatever evidence they have

10. Universal Credit : The assessment period Absolutely pivotal to UC is a concept called the assessment periodThe assessment period is a rolling period of one monthIt begins on 1st day of entitlement and starts on that date each following month whilst entitlement continues (e.g. Assessment period begins on 14th Nov each assessment period begins on 14th )UC is payable for each complete assessment period Entitlement for an assessment period is determined by a claimants circumstances on last day of the assessment period Your circumstances on the last day are deemed to be your circumstances on the first day.

11. How Universal Credit entitlement is worked out

12. The CalculationHow to work out a claimants UC entitlement Calculate capitalCalculate maximum amount of UC Calculate incomeDeduct income from maximum amountAdd transitional addition (if relevant, it will apply in migration cases only)UC entitlement Remember however the benefit cap may then apply Remember amount payable may be further reduced by e.g. sanctions

13. Calculation of UC entitlement involves a two sided sumMaximum UC amount made up of elements (which ever are appropriate)Standard (in every claim) Child/ren (inc disability monies)Housing CostsLimited capability for workLCWRACarer Childcare Amount to be deducted from max UC figEarned income: 63% of amount after work allowances deducted (if relevant)100% unearned income (that counts) including assumed income from capital £6k - £16k

14. Income Side of UC :Earned Income/Unearned income Earned income Is net amount actually received from employment/self employment during an assessment period after any work allowance (earnings disregard, i.e. money you are allowed to keep) is deducted Earned income deducted from UC at rate of 63p for £1 earned after work allowances (if applicable) are deducted Unearned income is calculated as a monthly fig although not necessarily what may be received in month (i.e. Occ pension is paid 4 weekly) Specific list of benefits if not on list then they do not count as incomeJSA, ESA, Carers All, Ret Pension income, Bereavement Allow, Widowed mothers and parents allowance, widows pen, maternity allow, Ind Inj Ben Remember if unearned income counts, it counts 100%

15. Work Allowances Work Allowances: earnings which are disregarded (don’t impact) for Universal Credit purposesThere are two allowances £198 per month or £409 per month Work Allowances only apply if claimant or partner have limited capability for work or are responsible for children Where there is no housing cost element in UC sum higher work allowanceWhere there is a housing cost element the lower work allowance Work Allowances underwent major changes April 2016 (abolished for claimants with no disabilities or children and cut for others) CPAG: loss for a couple with children and lone parent equal £234 and £554 per year.

16. Is UC more generous financially?The Standard Allowance: The rates in UC are awarded on basis of single/couple under 25 or over Unlike IS, JSA or ESA however a lone parent 18–24 is not treated as a 25yr old and thus is entitled to £66.05 per month less In addition in ESA an 18-24 yr. old who moves into the main phase finds their personal allowance increase from £57.90 per wk. to £73.10 while in UC this increase in monies doesn’t happen so paid £66.05 per month less

17. Is UC more generous financially?Unlike the legacy benefit system an award of DLA or PIP for an adult gives no additional monies in UC.Severe Disability Premium Abolished (£64.30 per week / £3,343.60 per year in 2018).Enhanced Disability Premium (£16.40 per week / £852.80 per year in 2018).Current transitional protection regulations propose TP of £80 per month.No mention of TP for loss of EDP.

18. Is UC more generous financially?Only additions if sick/disabled are LCW or LCWRA elements (unfit for work) (remember UC replaces sickness benefit ESA)Limited capability for Work and Limited capability for work related activity you get whichever is appropriate (no couples rate) Element not normally paid until assessment period following a 3 month waiting period (limited exceptions) However LCW rate (only) abolished for claimants newly sick on or after 3 April 2017 (loss of £126.11 a month)

19. Is UC more generous financially?If have child born prior to 6 April 2017 then a higher rate payable for oldest child in claim and all other children paid at lower rate If no child born before 6 April 17 then all children paid at lower rate (loss £45.41 per month) Also child additions limited to 2 children such that If already on UC and have a third child on/after 6 April 2017 will not receive further child addition (£231.67 per month) However if already on UC and have 3 or more children born before 6th April will still receive monies for each Note new claims for UC from families with more than 2 children will be redirected to tax credits until Feb19

20. Is UC more generous financially?The Disabled Child ElementThere is an additional amount for each disabled child or qyp the claimant is responsible for There are two rates of disabled child addition (you receive only one)Lower rate disability addition: Applies where child gets DLA/PIP(UC £126.11 per month CTC disabled child fig £272.92 per month)Higher rate addition: H Care DLA, Enhanced D/L PIP, Registered blind (UC £383.86 per month CTC severe disability child £383.33 per month)

21. Is UC more generous financially?UC Benefit CapReduced from £18,200 and £26,000 per yr to£13,400 for single and £20,000 per yr for lone parents and couples with or without children (£1116.67 and £1666.67per mnth) (higher figures London) In UC cases the Ben Cap is deducted from the totality of UC not just hsg costs which could mean deeper cuts for some claimants than under legacy system There are however a number of exemptions from ben cap (You, your partner or a child/QYP for receive DLA or PIP or Att All or if have limited capability for work related activity or earnings are at least equal to working 16 hours at National Living converted to a net monthly amount. (multiplying by 52 divide by 12))

22. Is UC more generous financially?UC replaces HB and other bens so has monies to cover rent or mortgages In HB one of the biggest reasons for rent arrears is having what is called a non dependent living there (usually adult son or daughter still at home)In HB can lose £15.25 - £98.45 per wk depending on non dep’s earnings UC it’s a flat charge of £72.16 per month regardless of their earnings There are no non dep deductions in hsg costs for mortgages However a housing cost amount for a mortgage cannot be included in UC award for an assessment period in which the claimant has earnings Regardless of hrs worked or level of earnings

23. Is UC more generous financially?Child carean amount in respect of childcare costs for an assessment period when the claimant satisfies both the The work condition is in paid work or has an offer to start this assess period or If part of a couple partner working or unable to work The childcare conditionThe claimant pays charges in that period for relevant childcare (not care provided by a close relative wholly or mainly in the child's home) Unlike tax credits there is no lower limit of worked hours that childcare can cover Can pay 85% up to maximum of £646.35 or £1108.04 per month

24. Is UC more generous financially?There is no permitted work schemes under UC Potential issue for some disabled workers Unlike tax credits there is no disability or disabled worker additions in UC LCW or LCWRA elements can be paid and earnings disregards included when working if have LCW or LCWRA However when working and earnings are equal to or above 16 x the national min wage no LCW and LCWRA assessment will be carried out Unless claimant is entitled to AA, DLA or PIP or where it is for the purpose of reviewing an earlier determination If working what are chances of success at LCW assessment?

25. Is UC more generous financially?When UC full service is fully rolled out the current stated policy is pension credit will be awarded to couples only when the younger member of the couple reaches pension credit age. JSA has a premium known as the pensioner premium available in its premia. Universal Credit does not.Potentially a loss of £580.45 a month.

26. Conditionality in UCClaimant commitment, Work related requirements, Sanctions and Hardship payments

27. Universal Credit: Work related requirementsUC claimants face work related requirements but what’s imposed depends on which group a claimant fits into 4 groups: No work related, work focused interview only, work focused interview and work preparation or all work (going from carers to JSA claimants) This will be laid out in claimant commitment document with penalties (sanctions) if don’t comply Acceptance of this document is a basic condition of entitlement to UC It is important that claimants tell work coaches of any issues that are likely to hinder their search for employment when developing a Claim Commit Non acceptance means no money unless you lack the capacity to accept or there are exceptional circumstances

28. Employment and conditionality UC claimants in employment can still face conditionality (unlike working tax credits) i.e. need to attend WFI’s However they are exempted where their monthly earnings are at least equal to figure known as individual threshold This fig is the number of hrs the claimant would be expected to be looking for work x by minimum wage for their age (usually 35 hrs per wk, but could be less depending on circumstances) UC claimants may face sanctions for non acceptance of a zero hrs contract (people on Universal Credit are not required to accept zero hour contracts which require exclusivity. GOV.UK DWP guidance UC and employers frequently asked questions)

29. Sanctions There are 4 levels of sanction in UC: High, Medium, Low and Lowest To large extent the UC sanction regime system mirrors the existing sanction regimes in JSA, ESA and IS They can be for periods that are open ended, fixed or a mixture of both Length of sanction (fixed runs 7 days – 1095 days)Reduction if sanctioned an amount equivalent to 100% of standard amount or 50% if couple where only one is sanctionedIn JSA sanction regime sanctions run concurrently however UC sanctions run consecutively if more than one sanction applied (thus likelihood of longer periods on sanction for a number of claimants)

30. Sanctions / Hardship paymentIf sanctioned a claimant can make a claim for a hardship payment (paid at rate of 60% of what’s been cut) Must be 18 years+ and meet the compliance conditions i.e. do what is requested of them They must submit a claim and supply information required and show they are in hardship (payment not automatic)Unlike JSA and ESA systems UC hardship payments are recoverable by deductions from future UC entitlement Unlike JSA and ESA systems in UC claimants must apply each assessment period for such a payment (i.e. 3 requests in 91 day sanction)

31. Alternative Payment ArrangementsThe DWP stance is that APA’s should only be considered for claimants who cannot manage and would be at risk of financial harm The DWP decide, there is no right of appeal if they say no The landlord can also request a managed payment of the housing costs when in arrears equal to or more than 2 months or where claimant has continually underpaid rent

32. Scottish Flexibilities Allows claimant to request UC payments twice monthly Allows claimants to request UC housing costs (rent only) to be paid directly to the landlord (social or private) They also mean that full service UC claimants in Scotland must be advised of this facility Unlike APA’s there is no need to be assessed by DWP as being at risk Scottish Parliament have agreed that they are in favour of split payments.SOS ruled out split payments for rest of the UK at this stage