Universal Credit June 2014 1 Universal Credit overview

Universal Credit June 2014 1

Universal Credit – overview • Universal Credit aims to ensure claimants are better off in work than on benefits. It promotes personal responsibility to actively seek work and increase earnings, while continuing to provide support for those who need it most. • It’s designed to make work pay. As claimants earn more money, financial support will be withdrawn at a slower rate than is the case under the current system. Real Time information (RTI) link with HMRC will facilitate this • Claimants will be able to apply for their benefits online. 80 per cent of benefit claimants already use the internet. Telephone and other support services available if needed. • A single payment will be made to a household rather than an individual. This will include housing costs. It will be paid monthly, in arrears. Universal Credit requires claimants to accept a ‘Claimant Commitment’. This sets out what is expected in return for receiving assistance, taking into account personal circumstances and capability to earn. • • 2 Local support will be available to help claimants where appropriate. This will be provided through DWP and local authority delivery partnerships.

Universal Credit - making work pay Universal Credit helps to ensure people are better off in work than on benefits by: 3 • Removing the limit to the 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.

Universal Credit – one year on The first year of Universal Credit has seen major progress in delivering the main components of the new benefit across the country including: • Universal Credit is available in 17 sites across Britain • thousands of claimants benefiting from an easier single benefit payment sticking with them as they move into work – rather than the current mixture of 6 in and out of work benefits • the Claimant Commitment is now in place in all British jobcentres • 26, 300 members of staff have been trained to provide job coaching, expert help and advice to encourage and motivate claimants in their search for work • over 600, 000 Claimant Commitments have been signed – resetting the relationship between benefit claimants and Jobcentre Plus help • the roll-out of digital jobcentres will be complete by Autumn – placing wi-fi and computers in all jobcentres 4

The Universal Credit live service • Since Spring 2014 the live service has been available in 10 areas of the country. • Safe and controlled roll out. This helps us to test the system with claimants local authorities, and employers. • The live service will expand in 2014 to more areas of the North West – started 23 June. 5

Progression and future roll out 23 June we began our rollout of Universal Credit to jobcentres right across the North West – starting in Hyde, Stalybridge, Stretford and Altrincham. • By the end of this year, we will have 90 jobcentres, or one in eight jobcentres in Britain, offering Universal Credit. • And, shortly we will be able to announce that we are taking new claims for Universal Credit from couples in other sites - completing our commitment to expand the new service to more areas and to wider claimant types. • We are doing this in a careful, safe and controlled manner, limiting the disruption to claimants as we have always said we would. This remains the right approach. 6

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 make my claim online at GOV. UK. If I need help, I can telephone the Universal Credit helpline for assistance. 7 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 a text message to remind me about my interview at the jobcentre. 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 begin looking for work. I can get advice on jobseeking, budgeting and going online from my work coach. 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 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.

Personal Budgeting Support • Universal Credit supports claimants to get used to monthly payments and managing finances successfully, making it easier to move into work. • A range of support services are available to claimants not used to managing money in this way: – Personal planner is available on gov. uk to help claimants understand prepare for financial changes. – Online budgeting tools for claimants who can help themselves - such as those offered by Money Advice Service and Citizens Advice. – Jobcentre Plus Work Coach will direct claimants to help and advice in their areas. This could include help from local organisations to open a bank account or to put together a monthly budget. Some people may also be offered support over the phone or face to help them. 8

Personal Budgeting Support • 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. 9

Working with landlords • We're working closely with social landlords, such as councils and housing associations, to help them pro-actively support tenants to manage the change to UC: • As part of our learning from our Pathfinder, we have already: – improved the process of payments direct to landlords – standard template to apply for an alternative payment arrangement – increased support to help people adjust to budgeting. This includes extra support to help people manage their finances better. • Going forward - a budgeting action plan is being included with each person’s Claimant Commitment to make sure they are ready to manage their monthly payment at the very start of their Universal Credit journey. 10

Useful links for stakeholders • • • 11 An introduction to Universal Credit video http: //youtu. be/E 7 GUu 7 Xa 7 Nw 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-claimantcommitment 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/h ow-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 Arrangements https: //www. gov. uk/government/uploads/system/uploads/attachment_data/file/181399/p ersonal-budgeting-support-cover-note. pdf https: //www. gov. uk/government/uploads/system/uploads/attachment_data/file/181400/p ersonal-budgeting-support-guidance. pdf The Local Support Services Framework https: //www. gov. uk/government/uploads/system/uploads/attachment_data/file/181395/uc -local-service-support-framework. pdf

Useful links for stakeholders • • • 12 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/ho w-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-andclaimants-quick-guide HMRC and RTI http: //www. hmrc. gov. uk/payerti/getting-started/paye-basics/rti. htm Eight Ways Universal Credit can help your business https: //www. gov. uk/government/uploads/system/uploads/attachment_data/file/307091/ho w-uc-can-help-your-business. pdf