Universal Credit • 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’ Confident Place, Confident People.
Simplifying a complex system Current system Future system Income Based JSA Income related ESA Income Support Universal Credit Working Tax Credits Child Tax Credits Housing Benefit Personal Independence Disability Living Allowance Payment … to include support for Pension Credit housing and children Child Benefit, Carer’s Allowance (will remain) Council Tax Benefit (Localised Council Tax Support Schemes) Contributory JSA and ESA (conditionality rules changing) Confident Place, Confident People.
How is Universal Credit different? Current System Universal Credit The welfare system has The welfare system has A new single system means-tested more than 30 benefits each more than 30 benefits each support for working-age people who with their own rules and with their own rules and are in or out of work criteria criteria Work incentives can be Work incentives can be Ensure that work pays . Financial very low , benefits are very low , benefits are support will be reduced at a consistent reduced to take account of reduced to take account of and predictable rate (taper) and people earnings, different benefits earnings, different benefits will generally keep a higher proportion have different rules have different rules of their benefit Conditionality, some Universal Credit will personalise claimants are capable of conditions according to people’s working but have no capability and circumstances obligations to look for work Universal Credit is a single monthly Payments are made to payment to each “household”. A different adults in a household claimant will need to pay their rent out and for various periods of their Universal Credit Payment Confident Place, Confident People.
Universal Credit • 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 on an existing benefit Confident Place, Confident People.
Employment / Education Status • 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: Single Single Lone Parent Couple Claimant <25 Claimant >25 • £270 • £330 • £400 • £530 Confident Place, Confident People.
Universal Credit Claim • If the claimant is eligible to claim Universal Credit you should advise them that they will need to make a claim online 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 Confident Place, Confident People.
Payments • 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 Confident Place, Confident People.
Make Work Pay • 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 £ Confident Place, Confident People.
Make Work Pay • 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 Confident Place, Confident People.
Passported Benefits To gain access to Passported Benefits claimants will use their Secretary of State notification as authority of claim • Cold Weather Payments • Benefits from the Pupil • Jobcentre Plus travel Premium • Prison visiting costs help discount card • Free Early Education for • Healthy Start vouchers and disadvantaged 2 year olds vitamins • Funeral Payments • Sure Start Maternity Grant • Free school meals and milk • Legal Aid • Healthcare travel costs help • Remission from court fees • Health costs • Residential school visit costs • prescriptions • Leisure services • eye test • free swimming • dental care • school transport Confident Place, Confident People.
Post and Verification • 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 Confident Place, Confident People.
The Universal Credit Lobster Pot • 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 Confident Place, Confident People.
Personal Budgeting Support • 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 Confident Place, Confident People.
Money Advice • 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 Confident Place, Confident People.
Alternative Payment Arrangements • 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 Confident Place, Confident People.
Further Information • 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/ Confident Place, Confident People.
Any Questions? Confident Place, Confident People.
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