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Universal Credit

Universal Credit Universal Credit is for working-age people aged over 18 and under State Pension age. Universal Credit will replace a number of current benefits: • income-based Jobseeker’s Allowance (JSA); • income-related Employment and Support Allowance (ESA); • Income Support (IS); • Child Tax Credits (CTC); Working Tax Credits (WTC); • • Housing Benefit (HB). Universal Credit is intended to be simpler to administer, easier to access and payable to people both in and out of work. Universal Credit will include help with the costs of housing, children, childcare and other living expenses. 1

Universal Credit in Northern Ireland The Northern Ireland Executive previously agreed three payment flexibilities for Northern Ireland. • Twice monthly payment- closely reflecting the frequency of current benefit payments • Split payment- Universal Credit will be paid to a household but a couple will have the option of a single or split payment • Payment direct to landlord- the housing element of Universal Credit will be paid directly to the landlord The Fresh Start Agreement provided that the existing mitigation arrangements would include Universal Credit claimants.

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Introducing Universal Credit in Northern Ireland New w Claims ms Universal Credit will be introduced in Northern Ireland from 27 September on a phased geographical basis for new claims. Natural ural Migrati tion on Some current benefit claimants will naturally migrate to Universal Credit where their circumstances have changed, this is called Natural Migration. Natural Migration will happen from September 2017 through until March 2022. Managed ged Migrati tion on Current benefit claimants will transfer to Universal Credit between July 2019 and March 2022. Claimants will be advised what they need to do and when.

Universal sal Cre redi dit Roll-out ut Schedu dule le Universal Credit will be delivered through the current network of local offices. Three Service Centres will be located in Foyle, Newry and Castle Court. Date Area rea Date Area rea 27/09/2017 Limavady 02/05/2018 Kilkeel, Downpatrick & Newry 15/11/2017 Ballymoney 16/05/2018 Bangor, Newtownards & Holywood Rd 13/12/2017 Magherafelt & Coleraine 30/05/2018 Knockbreda, Newtownabbey & Shankill 17/01/2018 Strabane & Lisnagelvin 13/06/2018 North Belfast, Falls Road & Andersonstown 07/02/2018 Foyle & Armagh 27/06/2018 Lisburn, Larne & Shaftesbury Square 21/02/2018 Omagh & Enniskillen 04/07/2018 Carrick, Antrim & Ballymena 07/03/2018 Dungannon & Portadown July- September Ballynahinch, Newcastle and Cookstown 18/04/2018 Banbridge & Lurgan

Universal Credit Technical and Process Design Strand

UC NI Payment Timeline Waiting Assessment Period Payment Days 1 Calendar Month 7 Days 7 Days UC CPS 20 Days Calculation 4 Days 3 Days 10 Days ID Claim Verification Evidence & Claimant Verified Commitment - NI Payment Flexibilities Triggered - Calculation & Check - Payment & Check Claim Assessment End of Payment Payment Submitted Period Start Assessment sent to Made to Period CPS Claimant & Landlord

Northern Ireland Housing Position • The Northern Ireland default position is to pay the housing costs element of the Universal Credit (UC) award directly to the Landlord as a monthly payment. You may be aware that our DWP colleagues pay housing benefit directly to the claimant, however in an interest of protecting both claimants and Landlords in Northern Ireland it was decided housing costs should be paid directly to the Landlord as the default position. • A claimant can opt out of the NI default arrangement and ask for the housing costs element of the UC award to be paid directly to themselves. To do this they must satisfy the following criteria;  The claimant has not had their UC payment split between two parties in the household.  The claimant has no Discretionary Support or Universal Credit debt.  The claimant has no current or historical rent arrears

Landlords and Universal Credit • Universal Credit Claimants in the private rental sector will be responsible for providing evidence to support the verification of their housing costs examples include; tenancy agreements and bank statements. There is no requirement for Private Landlords to provide this verification directly to Universal Credit. • To facilitate the Universal Credit direct payment to the Landlord, Universal Credit will seek consent from the claimant to contact the landlord. • Universal Credit will contact landlords via phone in order to obtain their bank account details to facilitate direct payment of the housing element. • When UC is introduced the housing element paid directly to landlords will not include the rates element. Claimants will be responsible for making a separate claim for rate relief.

UC NI Calculation and Payments Adjustments: Universal Credit Universal Credit - (e.g. Deductions, Entitlement Maximum Award Earnings, other income) Housing Element paid direct to Landlord Remainder of UC Entitlement paid twice monthly to Claimant • * Where a claimants entitlement to UC is less than the rental liability, the entire UC payment will be paid to the landlord. Any remaining shortfall will be the responsibility of the claimant.

Landlord options to ask for direct payment or recovery of rent arrears If a private rental sector tenant has opted out of the default housing arrangement and subsequently meets one of the criteria below, the private landlord can access and complete a form on NI Direct to request that the default arrangement is re- established. This criteria are; • Claimant is currently in arrears with their rent for an amount equal to or more than two months of their rent. • Claimant has continually underpaid their rent over a period of time, and they have accrued arrears of an amount equal to or more than one month’s rent. • Claimant has been evicted for rent arrears within the last 12 months. • Claimant is subject to/threatened with eviction and/or repossession. Following a return to the default position, a household cannot request an opt out until six months after the arrears are paid back in full. The form can also be used to request recovery of arrears of rent and service charges for the property the tenant is currently living if your tenant has accrued rent arrears to the value of two month’s rent or more.

Landlord Register & Universal Credit ‘ The Landlord Registration Scheme Regulations (NI) 2012 ’ were introduced on the 25th February 2014. This legislation requires all Landlords who let properties, in NI, under a private tenancy to register under the scheme. Universal Credit will routinely check if a landlord is registered. The housing element of UC will not be paid directly to any landlord who is not registered.

Questions? For information on all the Welfare Changes please visit www.nidirect.gov.uk/welfarechanges If you have any questions please contact us at universalcreditcommunications@communities-ni.gov.uk