Universal Credit: Whats occurring? And where are the disability - - PowerPoint PPT Presentation

Universal Credit:

What’s occurring? And where are the disability elements?

Tom Messere Big Book of Benefits

Tom Messere - Big Book of Benefits:

• Big Book of Benefits and Mental Health
• other Big Books to come?
• Writing & consultancy,
• Benefits training courses

www.bigbookofbenefits.com e-mail: tommessere@gmail.com

Two migrations and an offer you can’t refuse

• A third failing new tests – DWP prediction was for15%
• a third -rather than estimated10% - go to Support Group
• Over 40% overall win on appeal (c.80% + if represented)
• Merges “working age” means tested benefit/ tax credits
• All will transfer and with transitional protection
• BUT no disability elements for new claimants or if TP lost.
• Not a migration – opt in, no transitional protection
• ESA style claim process and activities/descriptors

Timing...schmiming

• I take full responsibility for the delivery of universal credit, and

I will not shirk that responsibility. I intend to deliver it on budget and on time ... Ian Duncan Smith

• So we need to get it right but we shouldn’t be religious about
• timings. We should be religious about the overall concept of

what we are trying to do.' David Cameron

Universal Credit - timetable

Date Plan A Plan B Plan C (evolving)

April 2013 All new claims to be UC in pilot areas Simple jobseeker claims

• nly – clerical claims

Pilot starts in one area. Others join in July October 2013

• “begin the national

implementation”

• Roll out for new claims
• Migration Phase 1 –

500,000 switch as major change in circs

• “begin roll-out of the

national implementation”

• Extend to 8 BDC areas:

Birkenhead, Bolton, Canterbury, Cosham, Glasgow, Sunderland, Wolverhampton, & Wrexham - as IT kicks in

• All areas simple

jobseekers by Feb 2014

• Extend to 6 new JC+ areas:

Bath, Hammersmith, Harrogate, Inverness, Rugby & Shotton.

• Clerical simple jobseeker

claims only

• Extending once IT works

April 2014 All new claims UC Complex jobseeker claims

• national. Start extending

TBA April 2014 Migration Phase 2 – 3m most likely to gain e.g. low hours WTC claims Any migration plans TBA but poss only once roll out to new claimants sorted TBA April 2015 Migration Phase 3 – Other 8m – by LA area TBA TBA October 2017 All done ! But will all be done... But will all be done honest..

News from the “pathfinders”

• Little impact on local advice services
• Additional IT resources working well – no queues at the hubs –

poss as set up to cope with all new claimants on UC

• Staff on hand to support simple jobseeker claims –
• BUT will level of resources be sustainable as claims get more

complex and claimants more vulnerable?

• 1,000 UC claimants only – but if they move into your area they

bring their UC with them

• All claims being administered clerically
• DWP micro-managing the process to get it right
• In time conditionality issues may arise...

NAO Report on IT difficulties

• Universal credit programme has suffered from 'weak

management, ineffective control and poor governance'

• Overly ambitious in time scale and took risks to try to achieve

it

• The DWP could not explain how they chose October 2013
• Lacked a detailed view of how uc meant to work
• No adequate measures of progress

UC sanctions regime has started

• December 2012 saw:
• ESA sanctions lined up with JSA – you lose the basic money and are

left with only reward for good behaviour (WRAC) to live on.

• Three levels of JSA sanctions with a max of 3 years
• CAB reports 43% increase in sanction enquiries
• Significant rise in sanctions over last few years
• Claimant Commitment roll out from October 2013
• Daft sanction stories abound:
• A worker for 20years misses appointment – as process not explained
• sanctioned for 3 weeks
• A 19 year old sanctioned for 131 weeks for not taking enough steps
• On a workfare placement when JC+ appointment comes up. JC+ say

go to placement after – reported as late and a 3 week sanction!

• 5 mins late for appointment- show PAdwatch running slow. 4 weeks
• See www.falseecononomy.org.uk for many more

UC – Maximum Amount

Similar to Income Support / Housing Benefit structure:

• A basic Standard Allowance for claimant/partner plus
• Elements for:
• children, child disability and childcare
• limited capability for work or work related activity
• carers
• Housing Costs – rent (replacing HB) or mortgage interest

Key differences:

• All under 25s (inc couples, lone parents) on reduced rate
• No elements for adult disability or pensioners
• Cannot claim both carers and LCW elements
• No help with mortgage interest for even p/t workers

 Original plan was to simplify disability elements based on tax credits two tier system with common rates aligned to ESA component rates  Children on DLA or dependent young people on PIP will get

• either a disability element if on any rate of DLA/PIP or
• a higher rate if on DLA Highest Care/PIP Enhanced Daily Living

 Like current Child Tax Credit except standard child disability element - aligned to adult LCW – is down from 56.45 to 28.45

 A “common gateway” via the Work Capability Assessment

• A Limited Capability for Work Element – 28.45
• A Limited Capability for Work Related Activity Element – 69.88

(higher than ESA Support Component as replaces EDP/SDP)

 What about claimants who are not in “sickness route”

• carers, lone parents, jobseekers
• the 16% of DLA claimants in paid work over 16 hours?
• OR those on LCW element who may have had enhanced/severe

disability premiums under old MTBs

 Mixed age older couples will be treated as having :

• LCW (any rate DLA/PIP) or
• LCWRA (PIP Enhanced Daily Living / DLA Highest Care / AA)

UC Disability “winner”

Harry – on Support Component lives with aunt and uncle

Gets ESA (with SC), DLA Middle Care/ Lower Mobility Income- related ESA

Amount Universal Credit Amount (weekly

equivalent)

Personal Allowance 71.70 Standard Amount 71.70 Support Component 34.80 Limited Capability for Work Related Activity Element 69.88 Enhanced Disability Premium 15.15 Total 121.65 141.58

UC Disability “loser”

Hemione – Support Component lives in own supported place

Also gets ESA (with SC), DLA Middle Care/ Lower Mobility

Income- related ESA Amount Universal Credit Amount (weekly

equivalent)

Personal Allowance 71.70 Standard Amount 71.70 Support Component 34.80 Limited Capability for Work Related Activity Element 69.88 Enhanced Disability Premium 15.15 Severe Disability Premium 59.50 Total 181.15 141.58

UC Disability “bigger loser”

Hagrid – WRA Component lives in own supported place

Gets ESA (with WRAC), DLA Middle Care/ Lower Mobility Income- related ESA

Amount Universal Credit Amount (weekly

equivalent)

Personal Allowance 71.70 Standard Amount 71.70 Work Related Activity Component 28.45 Limited Capability for Work Related Activity Element 28.45 Severe Disability Premium 59.50 Total 159.65 100.15

UC - Protecting the vulnerable?

Ron – lone parent and child – both with disabilities

Gets CA & IS, CTC, CB and DLA Middle Care/ Lower Mobility. Looks after son – Hewhomustnotbenamedyet who gets DLA Middle Care

Income Support & Child Tax Credit Universal Credit IS Personal Allowance 71.70 Standard Amount 71.70 IS Carers Premium 33.30 Carers Element 33.30 IS Disability Premium 31.00 IS Severe Disability Premium 59.50 CTC – Family & Individual elements 62.72 Child element 1st child 62.62 CTC – Disabled Child element 57.89 Child Disability element 28.45 Total amounts 312.81 192.77

What needs to change

• Adults – extend the provision for “mixed age” older couples

to allow AA/PIP & DLA to allow people to be treated as LCW/LCWRA

• A small change to the a Schedule to the regs to restore

“rough justice”

• Stop picking on carers with disabilities! They deserve support

for both their own additional costs and the huge work they do

• Stop using rate “harmonisation” of one of the rates as an

excuse to target disabled children in the lowest income households for cuts