Welcome poster image 4 November 2011 allpay public allpay public - PowerPoint PPT Presentation

Welcome poster image 4 November 2011 allpay public allpay public

Schedule 13:00 Welcome from 24housing Editor Jon Land Victoria Suite 13:15 ‘An overview of the Universal Credit Payment Proposal and Housing Demonstration Projects’ Andy Brittan & Felicity Ridgway, Department For Work and Pensions Victoria Suite 13:30 ‘The impact of Housing Benefit and welfare reform on ALMOs’ – Chloe Fletcher, Policy Manager, NFA Victoria Suite 13:45 ‘The views from Stockport Homes’ – April Higson, Director of Housing, Stockport Homes Victoria Suite 14:00 ‘The views from Berneslai Homes’ – Helen Jaggar, Chief Executive, Berneslai Homes Victoria Suite 14:15 ‘Universal Credit and its impact on tenants’ Alan Jess, Board Member of Tenants and Residents Organisation of England, TAROE Victoria Suite 14:30 Tea & coffee break Victoria Foyer 14:45 ‘The potential impact of direct payments and solutions for protecting income streams’ Nick Peplow, Marketing Director & Richard Roberts, Head of Prepaid Card Sales, allpay Victoria Suite 15:00 Your questions answered Victoria Suite 16:00 Closing remarks & next steps – Jon Land, Editor, 24housing Victoria Suite 4 November 2011 allpay public allpay public

Jon Land Editor 4 November 2011 allpay public allpay public

Welfare Reform: Universal Credit and the Housing Demonstration Projects Felicity Ridgway DWP Universal Credit Programm felicity.ridgway@dwp.gsi.gov.uk Andy Brittan DWP Housing Strategy andy.brittan@dwp.gsi.gov.uk

Why change? • Managing rising costs • Delivering fairness • Increasing employment This means transforming what we do and how we do it 5

Universal Credit Overview (1) What will Universal Credit look like? Simpler, on-line benefits system Showing how work pays 6

Universal Credit Overview (2) Scope of Universal Credit In Scope: Out of Scope: • Income- based Jobseeker‟s • Council Tax support Allowance • Disability Living Allowance • Income-related Employment and • Contributory Benefits Support Allowance (although earnings rules • Income Support (including Support aligned) for Mortgage Interest) • State Pension • Child Tax Credits • Child Benefit • Working Tax Credits • Pension Credit • Housing Benefit • Carer‟s Allowance • Social Fund (budgeting/alignment) 7

Universal Credit Overview (3) Better work incentives • No need to „sign - off‟ benefits to take an employment opportunity • Support seamlessly continues based on dynamic financial need rather than crude employment status • Reduces workless households facing Participation Tax Rates of over 70% by 1.1 million • Highest Marginal Deduction Rate (MDR), including tax and National Insurance, reduces from 96% to around 76%, improving work incentives of 700,000 people with the highest MDRs. 8

Universal Credit Overview (4) A simpler system with clear work incentives £500 Universal Credit: lone parent with two children £400 £300 Total in-pocket income £200 200 £100 100 Universal Credit payment £0 0 100 £700 £100 £200 £300 £400 £500 £600 9

Universal Credit Overview (5) Customers of Universal Credit • Success of Universal Credit is predicated on influencing customer behaviour: – to take up work, or do more hours – to be able to interface with the system as a couple as well as an individual – to trust the system to get the information it needs without their contact – to use new channels as the main way of making contact 10

Universal Credit Overview (6) Broad Impacts • No cash losers at the point of change • Estimated 2.7 million households will have higher entitlements – Over 1 million of which see a rise of more than £25/wk • 350,000 children and 600,000 working-age adults could be lifted out of poverty • 300,000 fewer workless households • £2bn per year saved by reducing fraud and error overpayments in the long term • Annual flow of savings due to greater administrative simplicity 11

Implementation Timescale Oct „17 Feb „11 Apr „13 Oct „13 Oct „14 Oct „15 Oct „16 Apr „14 New claims from out-of-work claimants Test Design & build New claims from in-work claimants Natural transitions due to change of circs (mainly JSA) Managed transitions (mainly other benefits) 2.5m 4.5m 6m 8m Legacy load UC load JSA, ESA, IS, HB, WTC, CTC 12

Universal Credit and housing (2) Direct payments in Universal Credit • Responsibility prepares people for the world of work – Managing your rent or mortgage is a social responsibility – Progress has already been made through the LHA • Private rented sector tenants will generally be paid as now • Social-sector landlords need stable incomes – Welfare Reform Bill pledges appropriate protection – Demonstration projects to commence June 2012 13

Who will the direct payment to tenant policy affect? Working age adults, not claiming Housing Benefit 20% Working age adults in receipt of a partial Housing Benefit payment 35% Estimate of vulnerable group of working age adults claiming Housing Benefit Pension age tenants claiming Housing Benefit 25% Working age adults 10% claiming Housing Benefit 10% & new to Direct Payments 14 All households in the Social Rented Sector, Great Britain

Direct payments - demonstration projects • On 14 th September, Lord Freud announced we shall establish about six small- scale demonstration projects to will test some key elements of social sector housing support under Universal Credit while protecting social landlords’ financial position. • These will include: – direct payments to tenants being the default; – adopting the payment frequency envisaged under Universal Credit (likely to be monthly payments in arrears); – safeguards to pay the landlord directly where necessary. We will define the details of how these will operate during the project. We expect the safeguards generally to be rules based and automated, simulating the approach within Universal Credit. • We will run the demonstration projects in about six local authority areas from June 2012 to June 2013, with a six-month lead in starting in January 2012. • We are keen to get volunteer local authorities and landlords to take part in these projects. We welcome expressions of interest until 8th November 2011. • For further information, please contact us at: demonstration.projects@dwp.gsi.gov.uk 15

Delivering Universal Credit The Delivery Model – what do we know? • Universal Credit will be „digital by default‟ • For 2013, Universal Credit will be delivered using existing resources • There will, therefore, be joint working between DWP, local authorities and HMRC • Jobcentres are expected to be the primary channel for local, face-to-face support • DWP is working with local authorities to define and agree their role in face- to-face delivery • Contact centres and support centres will be provided from a subset of the best DWP and HMRC sites • Delivery of Universal Credit in the longer term is under consideration 16

Conclusion • Radical changes to the benefit system • Move towards Universal Credit over time, with implications for Housing Benefit delivery • Key changes to the payment of benefits • Major transformation and major challenge • Increasing employment and reducing poverty 17

Welcome poster image 4 November 2011 allpay public allpay public

Housing Benefit and Welfare Reform – an ALMO perspective Chloe Fletcher, NFA Policy Manager

Housing Benefit and Welfare Reform  The NFA supports the intention to reform the welfare system to help make work pay.  We also recognise the need to make the system simpler for tenants.  But…. Concerns about implementation and impact on tenants in the process.  And the impact on the new self financed business plans.

NFA concerns  The loss of direct payment of Housing Benefit to the landlord for most tenants.  The introduction of family sized Housing Benefit payments.  Concerns over the implementation of Universal Credit – possible IT problems and a loss of a local expert benefit team.

Housing Benefit reforms From April 2011  Non-Dependent Deductions started to increase in line with prices. This is reversing the freeze in these rates since 2001-02. From April 2013  Housing entitlements for working age people in the social sector will reflect family size.  Household benefit payments will be capped to around £500 per week.  No more Housing Benefit direct to landlords.

A Universal Credit  A “Universal Credit” – a nice simple idea but one very complicated benefit.  Can the government implement the IT system to deliver it?  What happens if the administration and the expertise all goes to a central office?  Loss of local Housing Benefit teams who currently work closely with tenants and ALMOs to sort out claims, identify problems and attend court if necessary to give evidence on arrears cases.

Impact on Tenants  Confusion over the changes, there will be lots of changes for some.  Impact on family relationships where there is a non-dependent.  Willingness to move to smaller accommodation if necessary?  Ability to budget once all benefit delivered as one Universal Credit.  Need to have a bank account to pay rent easily where previously they hadn‟t?