preparing your business for universal credit
DESCRIPTION
Universal Credit is a new benefit being introduced by the Government, replacing six existing benefits and providing a monthly payment to households. It is the biggest current threat to landlord income. Its rollout is slow, and this allows housing associations the opportunity to prepare for its introduction.TRANSCRIPT
• Pippa Bell, Policy Officer, National Housing Federation
• Gareth Bevan, Policy Officer, National Housing Federation
Preparing your business for Universal Credit
Pippa Bell, Policy Officer, National Housing Federation
Universal Credit overview
Universal Credit
Included in UC:
• Income-based Jobseeker’s Allowance
• Income-related Employment and Support Allowance
• Income Support (including Support for Mortgage Interest)
• Child Tax Credits• Working Tax Credits• Housing Benefit
Excluded from UC:
• Council Tax support• Disability Living
Allowance• Personal Independence
Payments• Contributory Benefits
(although earnings rules aligned)
• State Pension• Child Benefit• Pension Credit• Carer’s Allowance
UC timetable
April 2014• UC live in 10 sites
Summer 2014• North West expansion starts• Roll out to couples
Autumn 2014• Roll out to claimants with children
2016/17• Migration of existing claims
Universal Credit
Culture change
Single payment
Monthly payment
Direct to tenant
Online
Supporting work
Conditions and
sanctions
Alternative payment arrangements
Managed payment (to landlord)
Split payment
More frequent payment
UC payments
Universal Credit claimants will: • Have a ‘set’ pay date each month• Receive their initial payment seven days after the end of their
assessment period• From that point onwards they will receive their payment on the
same date each month, with a cut-off date to notify DWP of changes of circumstance
• If the pay day falls on weekends or bank holidays, the pay day will be advanced to the nearest working day
• Amount will not vary according to number of days in month
Assessment period
Universal Credit entitlementU
C m
axim
um
am
ou
nt
Standard allowance
+ Housing element
+ Child Element / Disabled Child Additions
+ Childcare element (for those in work)
+ Limited Capability for WRA Element or Limited
capability for work element
+ Carer Element
UC
En
titl
emen
t UC maximum amount
– applicable capital
– applicable income
– earnings (taking into account disregards and
tapers)
Housing element
Liable rent and eligible
service charges
MinusAny under-occupation deduction
Minus
any Housing Cost
Contribution (HCC) from
non-dependants
For social sector tenants the housing element will be:
Gareth Bevan, Policy Officer, National Housing Federation
Universal Credit
Twelve months in: learning from the Pathfinders
Structure of presentation
• Scope of the research• Preparations• Key issues emerging from UC Pathfinders in the
North West• Recommendations• Solutions• What next?
Scope of the research
• Research methodology
• Solely evidence from associations• Anecdotal• Limited claimant numbers
Preparations
• Proactive• Reactive• Work with staff• Work with tenants• Communication• Processes
Emerging issues…
Application
Emerging issues…
Routing of claims
UC
HB
Emerging issues…
Vulnerabilities
Emerging issues…
Support Services
Emerging issues…
Benefit advances
Emerging issues…
Alternative Payment Arrangements
Emerging issues…
Relationships
Emerging issues…
Data sharing
Recommendations
• Save function• Confirmation• PBS• APAs• Data sharing
Solutions
• Relationships• Regular meetings• LSSF• Processes
What next…?
• Rollout plans• Ongoing research• Member engagement
Contact
Pippa Bell
0207 067 1174
@natfedPippa
Gareth Bevan
0161 873 9449