Universal Credit 1
Universal Credit - overview Housing Benefit Income based Income based Jobseekers Employment Allowance and Support Allowance Universal Credit Working Child Tax Tax Credit Credits Income Support • Will replace six main working age benefits with one simple payment • UC is paid monthly – in a single payment to a household rather than an individual. This includes housing costs and is paid monthly in arrears. • Is for people in work and out of work • Uses PAYE in real time information (RTI) – a revolutionary change in the way earnings are handled by HMRC, which reduces the burden of reporting for employers. The new system provides DWP with the information to adjust the amount of Universal Credit payment any employed claimant receives. 2
What’s different about Universal Credit? PAID MONTHLY IN AND OUT OF WORK PAID DIRECTLY CLAIMANT CLAIMANT COMMITMENT IT’S IT’S LIKE COMMITMENT – REQUIREMENTS ABOUT WORK LIKE A WORK CONTRACT FULL TIME WORK SEARCH IT ENCOURAGE S WORK EASY EARNINGS, TRANSITION UC A SIMPLE TAPER NOT HOURS TO WORK (AND SO BETTER OFF BACK) IN WORK 3
UC gateway for single claimant Couples and people with dependent children are excluded from the UC ‘single’ claimant gateway for national roll out. In order to claim UC the single claimant with no children must: • Have a National Insurance Number. • Be in the correct postcode area. • Be aged between 18 and 60 and 6 months. • Not own or partially own the home they live in. • Not be homeless or living in temporary or supported accommodation. • Be a British citizen. • Have lived in the United Kingdom (UK) for last 2 years. • Not be required to pay child maintenance for a child. • Not in receipt of a disability benefit. • Not be unfit for work. • Not be pregnant or given birth in the last 15 weeks. • Not be a carer. • Require a Personal Acting Body (PAB) or Corporate Acting Body (CAB). • Not be in education or training or expect to start in next month. • Not be self-employed. 4
UC gateway for single claimant • Be unemployed or declared earned income for the first month of the UC claim is not expected to exceed £330. • Capital must not exceed £6000. • Must have a bank, building society, post office or current account with a credit union. • Must not be receiving Employment and Support Allowance (ESA), Jobseekers Allowance (JSA), Income Support (IS), Incapacity Benefit (IB), Severe Disablement Allowance (SDA) , Disability Living Allowance (DLA), OR Personal Independence Payment (PIP). • Must not be awaiting a decision on a claim for ESA, JSA, IS, Child Tax Credit (CTC), Working Tax Credit (WTC) or Housing Benefit (HB). • Must not be awaiting the outcome of an application to revise a decision of non-entitlement to ESA, old rules JSA, IS and HB. • Must not have an undecided appeal against non-entitlement to old rules ESA, old rules JSA and IS. 5
UC Claimant Journey – Pictorial Representation Customer Touch Points I notify the UC Service I receive a text I attend my I receive my UC I am Centre if there is a message to interview in the decision letter asked to change in my remind me which includes Jobcentre and take I make my attend the about my circumstances any evidence that my payment claim on-line. Jobcentre interview at the schedule if has been If I need help, I I get Jobcentre requested. I sign appropriate. I am can telephone information I attend the I receive a my printed claim also advised the Universal or advice Jobcentre notification to about my on- and complete the Credit helpline about how and engage advise me I receive a Claimant going for assistance to claim in work that my telephone responsibilities Commitment (CC) Universal related Universal call inviting as agreed in my Credit (UC) activity credit I send any me to attend CC entitlement additional an interview has changed missing in the or ceased evidence to the Jobcentre Mail Opening Unit (MOU) UC Service Centre Jobcentre Business UC Service UC Service Process Centre Claims Centre Jobcentre Closure Online/ UC Helpline The MOU scan the claim on to the Data The Jobcentre print Repository System the UC claim and (DRS). Any evidence obtain a signature or correspondence On receipt of the from the claimant. sent in separately by If the claimant online UC claim, the Any additional The Claimant is has a change of the Claimant creates Service Centre (SC) information is Claims to Universal invited to attend a CAMLite task for the circumstance it contact the Claimant gathered and the Credit (UC) are made on- the Jobcentre to agent in the SC. On is reported to by telephone to Claimant line. If a claimant requires undertake receipt of the task, the Service arrange an interview Commitment (CC) is assistance, the Universal specific work the agent updates the Centre. The at the Jobcentre. completed. The UC Credit Helpline is related activity UC Portal. Once all claimant is An SMS text Portal is updated and available. as agreed in the evidence has been notified message is issued the claim documents In exceptional CC. verified, this triggers regarding any to remind the and any supporting circumstances, claims There is on- the processing of the change to the claimant about their evidence are sent to can be made by going UC claim award of appointment the Mail Opening telephone or face to face 6 interaction at the Universal Credit Unit (MOU) JC
Universal Credit – one year on 7
Promoting personal responsibility • Universal Credit deliberately fosters independence and personal responsibility. It does this through a series of important changes to the way claimants are required to interact with the service. • A Clamant Commitment – this encourages claimants to take greater responsibility for preparing themselves for work, and for their job search. – Set their own goals. – Tailor their job search to those goals and their circumstances. – Understand from the outset that receipt of Universal Credit is conditional on taking the action they commit too. • The Claimant Commitment has been rolled out nationally, for all those making new claims for Jobseekers Allowance. • Over 26,300 Jobcentre staff have already been trained , helping them move from an advising and monitoring role to become a Work Coach who will help a claimant through their goals and aspirations , and to overcome barriers to work. 8
Universal Credit Work Coaches Universal Credit Work Coaches: • Will engage with all households at their work search interviews to assess financial capability. • Where appropriate this includes making Personal Budgeting Support appointments for advice and identifying if an Alternative Payment Arrangement is necessary for the housing element of Universal Credit. • Will encourage access to local support services as they reinforce the connection between work readiness and good money management to help households break down barriers and move into work faster so they can earn more. 9
Personal Budgeting Support - Context REQUIREMENT FOR A PERSONAL BUDGETING STRATEGY IS DRIVEN BY THESE CHANGES We want to help people to be able Housing costs to manage their own direct to tenant finances successfully, whether they are Single payment in or out of work to household Monthly Payment 10
Personal Budgeting Support - Overview Alternative Payment Arrangements Claimants managing their money Money Financial advice products 11
Personal Budgeting Support • Online budgeting tools for claimants who can help themselves - such as those offered by Money Advice Service and Citizens Advice. • Advice services offered by external organisations for those who need more support with, for example, getting a bank account or doing a monthly budget plan. • Advice will be delivered through online, telephone and face-to-face channels by expert providers at a national and local level. • A personal planner is available on gov.uk to help claimants understand and prepare for financial changes arising from the introduction of Universal Credit. • Up to 1.3 million potential UC claimants currently do not use a transactional bank account to manage their benefit payments. • We are looking at ways to make accounts with budgeting functionality , such as ‘jam jar’ accounts, more widely available . We are consulting with financial providers across the private, social and third sectors and considering the best ways to make these types of products more available. 12
What are Alternative Payment Arrangements? • Alternative Payment Arrangements (APA) will be available to help claimants who need additional support: – paying the UC housing cost element (rent) as a managed payment to landlords – making more frequent than monthly payments – splitting payment of an award between partners We will also have the option to make rent payments direct to the landlord if a claimant reaches a certain level of rent arrears. • More importantly, the APA process should be completed in agreement with the claimant and should be part of a wider Personal Budgeting Support discussion and referral. 13
Recommend
More recommend
