Updated: February 2014 Next update due: April 2014 DWP: Our Reform Story For more information contact: corporate.stakeholders@dwp.gsi.gov.uk Follow us: twitter.com/dwppressoffice facebook.com/DWP linkedin.com/company/dwp youtube.com/workandpensions 1
2 DWP: Our Reform Story Next update due: April 2014 Updated: February 2014 Overview slides
The Reform Story Overview (1) • As part of the government’s long-term economic plan, we are fixing the welfare and pensions systems so they are fair and affordable, to “A system that ensure: was originally – it pays to work; designed to – the most vulnerable – disabled people and pensioners – are support the protected, and are supported to lead independent lives; poorest in – people save for retirement, and the pensions system is simpler society is now and more transparent; trapping them – separating or separated parents are encouraged and supported to in the very condition it was work together in the best interests of their children; and supposed to – public spending is put on a more sustainable footing. alleviate” Iain Duncan-Smith, • Our services are changing to reflect the diversity and complexity of Secretary of State for the issues that many people in society face today, requiring more Work and Pensions joined-up working across government and beyond. • We are creating a system based on fairness; it will provide value for money and place greater emphasis on personal responsibility. 3
The Reform Story Overview (2) • Our welfare reforms are the most fundamental changes to the social security system for 60 years, aiming for a simpler, fairer benefits system and to ensure work pays. • Employment must be an aspiration for everyone who is able to work. • We are reforming the benefits system so instead of trapping people in welfare dependency, it rewards work and, backed by the right support and encouragement, helps people lift themselves out of poverty, and stay out of poverty. • Our pension system must remain fair and affordable. Our pensions reforms are designed to support people to save for their future and to ensure they can access good quality, value-for-money pensions, whilst continuing to provide security for those in need. • Our reforms are helping to put public spending on a more sustainable footing. Money needs to be targeted more effectively to ensure that the system is fair to the British taxpayer and people in genuine need of support. 4
Reform Timeline Autumn 2012 - Spring 2013 November 2012 Universal Jobmatch launched. January 2013 Reinvigorating Workplace Pensions published. ‘Learning the lessons’ early Autumn 2012 findings of Direct Payment All Employment and Support Allowance Demonstration Projects claimants with a 12 month prognosis began 12 Local Spring 2013 Report available. Authority-led to be mandated to the Work Programme. Update Access to Work Universal Credit Single Tier State Pensions Single Fraud Investigation Service initial pre-employment pilots began. White Paper published. pilots went live. eligibility. December 2012 October 2012 February 2013 April 2011 Local Housing GOV.UK went live. Implementation of Allowance changes were fully stronger Access to Work Automatic enrolment began for the largest implemented. Triage in operational companies. 2012 Child Maintenance environment. State Pension statements introduced, Scheme opened on a Fulfilling Potential: replacing State Pension forecasts. pathfinder basis. Building Understanding Access to Work extended to young people on Mobile Regional Taskforce launched. work experience. pilots went live in Dundee and Manchester. Civil penalties introduced. 5
Reform Timeline April 2013 Localised Support for Council Tax introduced. Universal Credit Appeals reforms Pathfinder went live. introduced for Personal Controlled start for New Claims Independence Payment and Universal Credit. to Personal Independence Short Term Benefit Payment for those living in the Advances introduced. North West and parts of the Tougher Loss of Benefit North East of England. April 2013 regulations commenced. Benefit cap came into force for Publication of Social new and existing claimants in Most employers now Justice: transforming Bromley, Croydon, Enfield and required to send PAYE lives – one year on. Haringey local authorities. returns in real time. Community Care Loans Removal of the spare room and Crisis Grants Local Housing Allowance rates subsidy came into force. abolished and new uprated annually by reference Local Welfare Provision to the Consumer Price Index or introduced. 30th percentile of local rents. 6
Reform Timeline May - September 2013 Summer 2013 September 2013 May 2013 The first Work Programme Results from consultation on claimants finish their 2 Pensions Bill, First mobility component of PIP years with providers. Reading in Commons published. July 2013 June 2013 Benefit cap implemented in all other local New claims for PIP authorities (between 15 July and end of introduced nationally . September 2013). Universal Credit pathfinder expands. Publication of Fulfilling Potential: Making it Happen, setting out the cross-government disability action plan, outcomes and indicators. Launch of Disability Confident campaign 7
Reform Timeline October 2013 All employers will be Temporary Accommodation in routinely reporting PAYE Universal Credit will have in real time. Progressive roll out of Universal Credit housing costs met in line with began with Hammersmith Jobcentre Local Housing Allowance rates. Launch of Social Justice taking new claims An additional management toolkit by the Centre for element will be paid as a national Economic and Social Claimant Commitment rolling out flat rate to local authorities. Inclusion and DWP nationally to around 100 Jobcentres a month (to Spring 2014) October 2013 Pensions Bill, First Reassessment of existing Disability Reading in Lords Living Allowance claims for Personal 11 in-work conditionality pilots Independence Payment begins for those being delivered. that report a change in condition or reach Appeals reforms Improved digital services rolling the end of an existing award - for people introduced for all other out nationally across Jobcentre who live in Wales, East Midlands, West DWP-administered Plus (from October 2013) Midlands and parts of East Anglia. benefits and child maintenance cases. 8
Reform Timeline November 2013 – Spring 2014 December 2013 Universal Credit - Local authority led pilots April 2014 complete - Direct Payment Demonstration Help to Work – JSA February 2014 Early 2014 Spring 2014 Projects complete claimants returning from UC roll out – Publication of final Charging for Child Publication of Litchfield review into the Work Programme will expansion to report on Local Maintenance Work Capability Assessment. go onto one of three Bath and Housing allowance Service starts and Revised Habitual Residence Test intensive modes of Harrogate taking monitoring and CSA cases begin was introduced for face to face support, determined by new claims evaluation research. to close interviews in Jobcentres. Jobcentre Plus advisor. . November 2013 January 2014 March 2014 April 2014 Minimum earnings threshold UC roll out – Automatic enrolment begins for medium Most jobseekers are unable was introduced. This will expansion to Rugby employers. to access income-based JSA help DWP Decision Makers and Inverness until they have been living in decide whether an EEA Local Housing Allowance uprating limited the UK for 3 months. national’s previous or Child Maintenance to 1 per cent. A new ‘Genuine Prospect of current work can be treated Service opened to Universal Credit roll out – expansion to Work’ assessment takes as genuine in deciding all new applicants Shotton taking new claims place after six months whether they have the right to reside in the UK as a Expansion to further areas of Removal of entitlement to Housing Benefit worker or self employed reassessment of some DLA for EEA Jobseekers, even if they are in person for benefit purposes. claimants to PIP receipt of income based JSA. 9
Reform Timeline Summer 2014 - 2017 Summer 2014 Expansion of UC October 2014 2016 pathfinder service to June 2015 take claims from Universal Credit service will Changes to Pension couples 2016 – 2017 be fully available in each part Automatic Credit for Child Majority of the remaining of Britain during 2016, having enrolment begins Launch of Single Addition and mixed legacy caseload moving closed down new claims to for small Fraud Investigation age couples come to Universal Credit legacy benefits it replaced. employers. Service into effect. . From Autumn 2014 October 2015 April 2016 May 2017 Reassessment of Expansion of UC live service to The new single tier Automatic enrolment remaining Disability Living take claims from families and once pension will be begins for new employers Allowance caseload for it’s safely tested we will expand to implemented from (established after April Personal Independence cover more of the North West of April 2016. 2012). Payment begins. England 10
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