Universal Credit Simplifying a complex system of multiple benefits: - - PowerPoint PPT Presentation

Confident Place, Confident People.

• Simplifying a complex system of multiple benefits:
• Current system has over 10,000 pages of guidance

for advisors

• Expensive to administer
• Universal Credit is about making work pay:
• More help for low income working families
• Claimants will keep more of what they earn
• Improved incentives to increase hours of work
• Simplified system will make moving to work feel less

‘risky’

Universal Credit

Confident Place, Confident People.

Personal Independence Payment Universal Credit Child Benefit, Carer’s Allowance (will remain) Income Based JSA Income related ESA Income Support Working Tax Credits Child Tax Credits Housing Benefit Disability Living Allowance Contributory JSA and ESA (conditionality rules changing) Council Tax Benefit (Localised Council Tax Support Schemes) Current system Pension Credit … to include support for housing and children Future system

Simplifying a complex system

Confident Place, Confident People.

Payments are made to different adults in a household and for various periods Universal Credit is a single monthly payment to each “household”. A claimant will need to pay their rent out

• f their Universal Credit Payment

Conditionality, some claimants are capable of working but have no

• bligations to look for work

Universal Credit will personalise conditions according to people’s capability and circumstances Work incentives can be very low, benefits are reduced to take account of earnings, different benefits have different rules Ensure that work pays. Financial support will be reduced at a consistent and predictable rate (taper) and people will generally keep a higher proportion

• f their benefit

The welfare system has more than 30 benefits each with their own rules and criteria A new single system means-tested support for working-age people who are in or out of work Current System Universal Credit Work incentives can be very low, benefits are reduced to take account of earnings, different benefits have different rules The welfare system has more than 30 benefits each with their own rules and criteria

How is Universal Credit different?

Confident Place, Confident People.

• Universal Credit go live
• Single claimants
• With no children or be pregnant
• Who pay rent or have no housing costs
• With no savings over £6,000
• Have a valid NINO
• Have a bank, building society or post office account
• Not be homeless or in supported accommodation
• Not have any claims, appeals or re-considerations
• n an existing benefit

Universal Credit

Confident Place, Confident People.

• To claim Universal Credit the claimant must:
• Not be self employed
• Not be in any form of education or training
• Not expect to start education or training in the next

month

• Be out of work or in work but does not expect to have

net earnings (from employment) in the next month exceeding:

Employment / Education Status

Single Claimant <25

• £270

Single Claimant >25

• £330

Lone Parent

• £400

Couple

• £530

Confident Place, Confident People.

• If the claimant is eligible to claim Universal Credit you

should advise them that they will need to make a claim

• nline www.gov.uk/universalcredit
• Local Authority have a list of locations for one to one

support

• Leaflet will be available
• Claim Universal Credit as soon as possible – claim from

date application submitted

• Changes of Circumstances / Universal Credit Service

Centre 0845 6000 723

Universal Credit Claim

Confident Place, Confident People.

• Short Term Benefit Advances and Budgeting Advances:

Administered by Universal Credit

• Financial support for claimants at the start of a benefit

claim, or a change of circumstances which increases the amount of benefit

• Budgeting Advances will be available if the claimant has

an immediate need

• A safe amount can be given to a Universal Credit

claimant when verification is outstanding

Payments

Confident Place, Confident People.

• Universal Credit is designed to ensure that it is always

worth working by allowing people to keep more of their benefit in the transitional period back to work

• Financial support will be reduced at a steady rate (taper),

taking actual earnings into account at the time they are received – use RTI

• Universal Credit will make it easier and less worrying for

claimants to try out a job or work more hours, because their benefits will not automatically stop if they do so

• Keep 35p in the £

Make Work Pay

Confident Place, Confident People.

• Majority of PAYE earnings provided through the Real

Time Information systems

• Real Time Information data used to assess and calculate

entitlement

• Wage slips or payment exceptions:
• Self-employed
• Receiving cash payments
• Employer not currently using Real Time Information

Make Work Pay

Confident Place, Confident People.

• Cold Weather Payments
• Jobcentre Plus travel

discount card

• Free Early Education for

disadvantaged 2 year olds

• Funeral Payments
• Free school meals and milk
• Healthcare travel costs help
• Health costs
• prescriptions
• eye test
• dental care

To gain access to Passported Benefits claimants will use their Secretary of State notification as authority of claim

Passported Benefits

• Benefits from the Pupil

Premium

• Prison visiting costs help
• Healthy Start vouchers and

vitamins

• Sure Start Maternity Grant
• Legal Aid
• Remission from court fees
• Residential school visit costs
• Leisure services
• free swimming
• school transport

Confident Place, Confident People.

• Online and Tele-claim process - no paper claims
• No Local Authority verification process – Signpost to DWP -

freepost address

• Claimant evidence verified at initial Work Search Interview

for verification to support claim:

• Identity
• Rent
• Earnings
• Income other than earnings
• Original evidence will be photocopied
• The photocopies will then be sent to the Mail Opening Unit

to be verified and recorded

• Once the claim has been processed the claimant will

receive a Secretary of State notification letter confirming their entitlement

Post and Verification

Confident Place, Confident People.

• The Lobster Pot – A Universal Credit claimant

remains on Universal Credit

• Pathfinder claimants reporting any change
• becomes ill
• partner or family
• has a dependant
• moves house to another part of mainland GB
• If a couple separate both will need to claim

Universal Credit

• A partner moving to a Universal Credit claimants

home - Housing Benefit cancelled – The Universal Credit Lobster Pot

The Universal Credit Lobster Pot

Confident Place, Confident People.

• Personal Budgeting Support is about helping claimants

adapt to 3 key changes:

• a single household payment
• being paid monthly and
• rent paid directly to the claimant
• There are 2 elements to Personal Budgeting Support:
• Money Advice
• Alternative Payment Arrangements

Personal Budgeting Support

Confident Place, Confident People.

• Effective Budgeting
• Money advice will be offered to all Universal Credit

claimants when they make a claim

• Different levels
• There will be different levels and types of money

advice based on need, ranging from a half hour telephone call, to 3 one hour face to face sessions

• Some claimants may be able to help themselves - online

budgeting tools

• Some claimants will be referred to the Local Authority
• The Local Authority will arrange Money Advice locally for

claimants

Money Advice

Confident Place, Confident People.

• The following Alternative Payment Arrangements will be

available to help claimants who need additional support:

• paying household costs (rent) directly to landlords
• making more frequent than monthly payments
• splitting payment of an award between partners
• Alternative Payment Arrangements are also known as

Payment Exceptions

• More importantly, Alternate Payment Arrangement will

be claimant centred

• The Universal Credit Decision Maker will consider all the

evidence and financial factors

• Referred to the Local Authority for Money Advice

Alternative Payment Arrangements

Confident Place, Confident People.

• www.dwp.gov.uk
• www.wigan.gov.uk
• Universal Credit Calculator
• Universal Credit Calculator App
• Universal Credit Personal Planner -

https://secureonline.dwp.gov.uk/universal-credit- preparation/

Further Information

Confident Place, Confident People.

Any Questions?