Universal Credit Full Service Overview
UC focuses on work Paid monthly In and out of work Paid directly Claimant commitment It’s requirements about work It’s like work Claimant commitment – like a Full time work search contract It encourages work Earnings, not hours Easy transition UC to work (and back) A Simple taper so better off in work
UC simplifies the welfare system From six benefits to one Child Income Tax Credits UC Tax Credits JSA Housing ESA Support Deal with one organisation not three UC DWP HMRC Local Authority ▪ Universal Credit is a digital, flexible and personalised system ▪ It reduces barriers to work, incentivising people to move into work ▪ It also helps people a low income to earn more and get on in their job
It’s a simplification of the benefit system Current benefit system Universal Credit Multiple benefits with multiple places to claim them One benefit, one place to claim Different benefits for in or out of work One benefit that stays with you in and out of work Different entitlement rules for different people One benefit for everyone* Complex rates for ESA Simpler rates for limited capability (only two elements) Different organisations (DWP, HMRC, Local Authorities) All administered under DWP Paper forms or clerical processes to claim Can claim online The Government keeps your information / data Claimants own and can see all their information / data using an online account Changing details can be clerical or paper/phone based Change circumstances online Feels more individual Is based on everyone in your household *Full service only. Once fully rolled out, 7 million people will be affected by Universal Credit.
Natural Migration Triggers – a few examples Moving from Moving from Moving from Moving from sick to in work (or out of work to sick out of work to in work in work to sick (reduction permitted work becomes or sick to out of work or in work to out of work of hours due to sickness) permanent Current JSA(IB)/ IS claimants, or their partners, who increase their working hours or start work such Current JSA(IB)/ IS Current ESA(IR) claimants that they no longer meet the claimants are no longer able are no longer able to make a conditions for JSA/IS cannot Current WTC claimants are to make a new claim to new claim to Tax Credits if make a new claim to Tax Credits no longer able to make a ESA(IR) if they live in a they live in a Universal if they live in a Universal Credit new claim to ESA(IR) if they Universal Credit Full Service Credit Full Service area and Full Service area and should be live in a Universal Credit Full advised to make an online claim area and should be advised should be advised to make Service area and should be to Universal Credit. Those with to make an online claim to an online claim to Universal advised to make an online an existing Tax Credit claim can Universal Credit. The same Credit. Those with an claim to Universal Credit. continue to claim Tax Credit but rules apply from ESA(IR) to existing Tax Credit claim can should they drop below 16 hours JSA (IB)/ IS. continue to claim Tax Credit they will make a claim for Universal Credit instead of JSA(IB) or IS.
Natural Migration Triggers – a few examples IS lone parent child under HB claimant moves from Household becomes 5 reaches 5yrs old or LA into a Universal Credit Separating claimants responsible for a child for leaves the household Full Service LA the first time permanently Where current joint Tax Claimants living in a Credit claimants who Universal Credit Full Service Existing HB claimants who separate and live in a area are no longer able to Current IS claimants are no move into a Universal Credit Universal Credit Full Service make a new claim to Tax longer able to make a new Full service area LA are no area are unable to make a Credits and should be claim to JSA(IB)/ ESA(IR) longer able to make a new new claim to Tax Credits as advised if they wish to claim when their award to IS ends claim to HB in the new LA a single person. Claimants for additional financial if they live in a Universal area and should be advised should be advised to make support because they have Credit Full Service area and if they wish to continue to an online claim to Universal a child living with them to should be advised to make obtain financial support with Credit if they continue to make an online claim to an online claim to Universal their rent to make an online require additional financial; Universal Credit. Those with Credit. claim to Universal Credit. support if they have (a) an existing Tax Credit claim child(ren) living with them or can continue to claim Tax are on a low income. Credits. Should someone have an existing claim to a legacy benefit when claiming via Universal Credit Full Service we will contact the appropriate department to terminate that claim.
Verification of Housing Costs
Full Service Housing Cost Verification Process Map Private Social Is the Claimant a social or private tenant? Claimant asked to bring in housing costs Service centre agent emails housing documents at ID interview costs verification form (HCV) to landlord No Housing costs HCV received Reminder e-mail sent to social landlord or information verified? from landlord? requested from claimant if a private tenant. No If housing costs remain unverified at end of assessment period then the housing cost will not be paid Yes Yes Info checked against claimant declaration, amended if required and Documents uploaded to claim uploaded to claim 8
Housing Costs Evidence required for Verification Social Landlords Evidence of housing costs will be obtained directly from the Social Landlord, and include: ✓ name of all tenants on the tenancy agreement ✓ property address including full postcode ✓ current rent and frequency (for example. monthly, weekly) ✓ breakdown of rent type, frequency and amount of service charge ✓ number of bedrooms ✓ landlord/agent details (name, address) ✓ rent free weeks (where applicable) ✓ if the tenant(s) are living in temporary accommodation
Housing Costs Evidence Required for Verification Private Landlords To be eligible for Housing Costs the claimant must provide sufficient documentation to verify three criteria 1. Proof of address/residency 2. Liability for housing payments 3. Proof that payments have been made. This might be made through the following documents – ➢ Bank statements or utility bills ➢ Rent book or letter from the landlord
Supporting claimants with complex needs Assisted Digital Support Personal Budgeting Support Alternative Payment Arrangements Advanced Payments
Alternative Payment Arrangements For a minority of claimants, Alternative Payment Arrangements may be required. The main options include : Paying the housing element directly to the landlord Making more frequent than monthly payments Splitting the payment within the household There is also an option to pay the housing element directly to the landlord once a certain level of arrears has been reached.
APA request matrix Factors to consider for alternative payment arrangements Tier One factors – Highly likely / probable need for alternative payment arrangements 1.1 Drug / alcohol and / or other addiction problems e.g. gambling 1.2 Learning difficulties including problems with literacy and/or numeracy 1.3 Severe / multiple debt problems 1.4 In Temporary and / or Supported accommodation 1.5 Homeless 1.6 Domestic violence / abuse 1.7 Mental Health Condition 1.8 Currently in rent arrears / threat of eviction / repossession 1.9 Claimant is young either a 16/17 year old and / or a Care leaver 1.10 Families with multiple and complex needs Tier Two factors - Less likely / possible need for alternative payment arrangements 2.1 Third party deductions in place (e.g. for fines, utility arrears etc) 2.2 Claimant is a Refugees / asylum seeker 2.3 History of rent arrears 2.4 Previously homeless and / or in supported accommodation 2.5 Other disability (e.g. physical disability, sensory impairment etc) 2.6 Claimant has just left prison 2.7 Claimant has just left hospital 2.8 Recently bereaved Language skills (e.g. English not spoken as the ‘first language’). 2.9 2.10 Ex Service personnel 2.11 NEETs - Not in Education, Employment or Training 13
Managed Payment of Housing Costs to Landlords • We expect most Universal Credit claimants will receive the single monthly payment, taking responsibility for paying their own household bills including their rent on time. • However, we recognise that some claimants will need extra support and so alternative payment arrangements including a managed payment of the UC housing cost to the landlord can be considered in some cases to help protect tenancies. • Managed payments will be considered on a case-by-case basis and can be requested by landlords as well as claimants. They can be considered on request from the start of the claim or during the claim if the claimant has accumulated rent arrears which will put their tenancy at risk. What are the key elements to consider • When a claimant has accumulated one month's rent arrears due to persistent underpayment, we will review the financial support they need and, if requested by the claimant or landlord, will consider making managed payments to their landlord if appropriate. • If a claimant has accrued two month's rent arrears, we can consider paying the UC housing costs direct to the landlord if the claimant or landlord request this
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