Salford Advice and Information Network

Universal Credit – 1st wave

Dave Ormsby& Dale Eccleston

www.salfordadvice.org.uk

Universal Credit.

• Introduction.• Warrington experience• Universal Credit - elements• Transitional protection.• Key changes & preparation• Income & capital.• Who can & how to claim online & the application process.• Conditionality.• Case examples• Work requirements/searches• Alternative payment arrangements & PBS• Budgeting advance, advance payment & hardship payments• Hardship payments.• Sanctions.• Appeals/disputes.

Do you know what your Universal Credit Award will include?

Child Benefit

Child/working Tax Credit

Disability Living Allowance

My wage

Partner’s wage

Income Support Council Tax reduction

Housing Benefit

Attendance allowance

Yes – These are the benefits that will be included in Universal Credit:

• Income Support

• Income Related Jobseeker’s Allowance

• Income Related Employment Support Allowance

• Housing Benefit

• Working Tax Credit

• Child Tax Credit

No this is not part of Universal Credit! These are some more Benefits notincluded in Universal Credit:

• Attendance Allowance• Bereavement Benefits• Disability Living Allowance (this will be called• Carer’s Allowance• Child Benefit• Contributory Employment and Support Allowance• Contributory Jobseeker’s Allowance• Council Tax Benefit (or, from 2013, its local replacement)• Industrial Injuries Disablement Benefit• Maternity Allowance• Pension Credit• State Retirement Pension• Statutory Adoption Pay• Statutory Maternity Pay• Statutory Sick Pay• War Pensions

All family income will be needed to claim Universal Credit

• One of the main aims of Universal Credit is to "make work pay"; consequently the total amount any family can claim in benefits will be capped.

• This limit will be linked to the average weekly earnings of people employed in the UK. This could potentially mean some families see their benefits substantially reduced, especially if they have a several children.

Universal credit

• What it means for you • Universal Credit sweeps away the complexity of the old system and provides a

single monthly payment if you are on a low income or out of work. It includes support for the costs of housing, children and childcare, as well as support for disabled people and carers.

Universal Credit will replace: • Income-based Jobseeker’s Allowance

• Income-based Employment and Support Allowance

• Income Support

• Working Tax Credit

• Child Tax Credit

• Housing Benefit

We are told

Warrington experience.

• Golden Gate Housing the biggest social landlord in Warrington, 40 of their 8,500 tenants on UC.

• 92% of those on UC have rent arrears.• 2 have been evicted and 13 are on either SPO or NSP.• More than half of those on UC have asked for direct

payments but this has not stopped the arrears increasing.

• Half of direct payments are incorrect.• Payments are going missing.• Computer collapses if the payment day is on a Saturday

or bank holiday.

Warrington experience.

• A lot of problems with the switch to monthly budgeting.

• Case studies: Evidence to support claims has gone missing and delayed an award.

• Switch to sickness benefit on UC resulted in a delay in payments and compounded M/H condition.

• GGH director concerned that DWP struggling with small pilot, significant implications for roll out.

• What options ?

Transitional protection.

• Will be paid with UC so no one worst off at the point of transfer up to 2017.

• Protection will only apply to UC claims only if as part of DWP managed transfer.

• Transitional addition will not be uprated.

• Will reduce if break in claim, change in circumstances; becoming/ceasing to be a joint claimant, three month drop in earnings below the earnings threshold contained in the claimant commitment, one or both members stops work, the UC claim ends.

• Single/ couple specifics.

UC elements

Step One : Basic AllowanceSingle claimant aged under 25: £249.28 per monthSingle claimant aged 25 or over: £314.67 per monthJoint claimants both aged under 25: £391.29 per monthJoint claimants either aged 25 or over: £493.95 per month

Reduction of allowancesTaper 65%

Where there are housing

costs

Where there are no

housing costs

UNIVERSAL CREDIT

Key Changes & preparation

• http://ucpp.dwp.gov.uk/universal-credit-preparation//

Examples of Tax credits/ UC differences

Income & capital.

• Increased number of self employed [4.5 million], 80% of the reduction in the unemployed in the last 3 months have become S.E.

• Accounts will be need to be kept in good order[monthly assessments].

• Check if in the start up period/ do any of the exemption to the minimum income floor apply?

Income & capital.

• Earning net of Income tax, N. I. CONS and 100% of pension contributions.

• SSP, maternity , paternity , adoption pay count as earnings.

• If involved in a trade dispute and earnings cease, normal earnings will be taken into account for UC.

• If employer fails to provide reported earnings, claimant has responsibility to provide.

Those who may need help

Need to set up an account

Paid monthly & landlord direct

Joint payments

Getting online

Q. How do I make a claim?

• You can make a claim for Universal Credit online at www.gov.uk/universalcredit. If you get stuck while you’re making your Universal Credit claim a helpline is available Monday to Friday 8.00am to 6.00pm. Call 0845 600 0723*.

• If you need further help and cannot make your claim online, you can use local, face to face services. These may be offered through your local Jobcentre or your local council.

Who can & who can’tTo make a claim for Universal Credit you must: • • live in a specified postcode area but not be homeless, in supported or temporary accommodation, nor a

homeowner • • be single, with no dependent children, a British citizen and aged between 18 years and 60 years and 6

months • • be fit for work• • not have received a payment of Jobseeker’s Allowance (JSA) or Employment and Support Allowance

(ESA) that ended in the last 2 weeks, except where ESA ended due to a decision that you no longer have limited capability for work

• • not be pregnant nor have given birth within the last 15 weeks • • not be receiving existing benefits or tax credits, nor awaiting a decision on a claim to them, nor be

appealing against a decision not to award any of those • • not be in receipt of Disability Living Allowance (DLA) or Personal Independence Payment (PIP) • • have expected take home pay no higher than £270 per month (under 25s) or £330 per month (25 or

over) and not have savings in excess of £6,000 • • not have any caring responsibilities • • not be self-employed, in education nor have a person acting on your behalf over your claim, and • • have a valid bank account and National Insurance Number.

If not UC then calculators are given as an option

A claim cannot be saved

• All information must be had before claiming:

ESSENTIAL CHECKLIST:• your postcode• your National Insurance number • details of the bank/building society/Post Office/Credit

Union account you want Universal Credit paid into• your rent agreement (if you have one)• details of your savings or other capital• details of any income that’s not from work • details of any other benefits you’re getting

Claim overview screen

Change in Circs

Conditionality.

• Condition of entitlement to UC that claimant/couple accept a claimant commitment which identifies work related commitments.

• Sets out what you must do to receive UC [examples].individual?• Prepared by the DWP, based on interview with EO and can dictate

contents, can be reviewed updated as DWP thinks fit [Tactic accept changes and then write to DWP to seek a review, comply with the imposed changes, whilst awaiting decision, make this intention clear].

• Accept by method specified by DWP[on line, phone or writing, accept within specified time limit].

• Time limit to accept can be extended if: have asked DWP to review action proposed in relation to work search/ availability requirement or limitation on these.

• Must also satisfy test that it is reasonable [cooling off period to allow chance to reconsider].

Conditionality.

• If either claimant or partner do not accept the claimant commitment UC is not awarded.

• Exemption if lack of capacity [require an appointee to make a claim], exceptional circumstances and it would be unreasonable expect to accept [ hospital for weeks, domestic emergency [define] or if JCP closed due to an emergency.

Conditionality.

• What is the earnings threshold?• Is the national minimum wage for the age of the

claimant& multiplied by hours expected to work [expected hours].

• Claimants whose earnings are above the weekly earnings threshold have no work related requirements.

• Couple whose combined earnings are at or above the sum of their individual thresholds will have no work related requirements.

• Apprentices threshold is at least the national minimum wage for 30 hours a week or, less, number of hours they expected to work.

Conditionality.

• What are expected hours?• Work focused interviews only means 16 hours per week.• Those subject to all work related requirements hours will be

specified in the claimant commitment, normally be 35 hours per week.

• Can be below 35 hours, if; relevant carer for disabled person/child for whom claimant is a parent but not carer,

• Is responsible carer or a responsible foster carer, means either lone parent or as nominated main carer in a couple, then number of hours will be those considered compatible with reasonable prospect of obtaining work.

• What is compatible? Child under 13 with normal school hours and this includes travelling to and from school.

• Claimants with physical/ mental health , number considered reasonable in light of impairment.

Conditionality.

• In work conditionality.• Part time workers who work less than that

specified in the claimant commitment, expected to spend time not working up to specified hours looking for more or better paid work.

• Key factors: does the claimant satisfy any of the categories to reduce the expected hours requirement?

• Check the combined hours earnings for couples.• Remember these checks could avoid claimants

falling foul of the sanctions regime.

There are four conditionality groups.

• No work related requirements.

• Work focused interviews.

• Work focused interviews and work preparation.

• All work related requirements.

Key factor check to make sure that the claimant has been placed in the correct group this is important to avoid sanctions!

Conditionality.

• No work related requirements if;• Partner over pension credit age who is included in the claim of

younger partner.• Main carer for a child adopted in the last 12 months.• Pregnant and within 11 weeks before/15 weeks after birth.• Under 21 in non advanced education & without parental support,

or in education but eligible for UC & with student income taken into account in calculating UC. [Which students qualify].

• Carers [even if do not qualify for CA] if accepted would be unreasonable [definition].

• People with limited capability for work related activity.• Responsible parent or foster parent of a child under one.

Conditionality.

• Work focused interviews.• Lone parent/ main carer of child aged between 1 and 5

[couple can choose which is the main carer].• Single/principle foster carer of child aged one or more [ can

include 8 weeks after foster care ended, if expected to foster again]& if unreasonable to impose further work related requirements due to needs of carer/child[individually assessed/ provide evidence].

• Within 12 months of becoming the responsible friend or family carer of a child in specific circumstances[define].

• Interviews may be conducted by phone/provide reasons and any supporting evidence, remember sanctions.

Conditionality.

All work related requirements[ plus work search &work availability requirements].If not any of the three above subject to all work related requirements, this includes;Jobseeker &part time worker with low pay who is not in any of the above categories.Any EEA national who is a jobseeker or their family member, who would otherwise fall into one of above groups.For UC 35 hours per week, means prepared to take any job at least the national minimum wage and within 90 minutes travelling time.Make sure that the client is placed into the correct group/implications sanctions.

Making work pay – a move towards financial independence

• As your take home pay increases Universal Credit will reduce gradually so you usually won’t lose all your benefits at once. There are no fixed hours thresholds, such as the 16 hours a week rule.

•

When you start work, your employer may enrol you in to a workplace pension. Your Universal Credit payment won’t be affected by your workplace pension.

Case example

?

249

261

510

329

111

218

141

510-141.70=368

Break Time

No work search requirements.

• Prisoner.• Attending court/tribunal as a witness or party to the proceedings.• Temporary absent from UK for medical treatment/convalescence.• Bereaved in the previous 6 months, where the deceased was a partner in a joint

claim, dependent child/young person.• For 6 months if participating in a structured rehabilitation programme for

drug/alcohol dependency.• For 3 months subject to protection under sec 82 Serious Organised Crime & Police

Act.• Engaged in approved public duties[define].• Temporarily unfit for work, up tom 14 days on two occasions every 12 months, self

certify and fit note required for subsequent period.• DWP would be unreasonable as ;• Carrying out work/voluntary work preparation,• Temporary childcare responsibilities, domestic emergency, funeral arrangements

or other.

Work related requirements.

Work related interviews.Intended to assess the prospects of getting/ keeping paid work.Providing assistance/encouragement to keeping /obtaining paid work.Identify activities including training, education, rehabilitation that will improve prospects of keeping/ getting paid work.Identify work opportunities that are relevant to needs/abilities [remember the CC].Is a claimant in gainful self employment or qualifies for a start up period[ remember would not need to take active steps to increase income].Sanction will be imposed if do not attend without a good reason.

Work preparation requirements.

• Actions as directed to improve prospects of paid work. Maybe required to spend a specific amount of time on actions such as;

• Attending skills assessment,• Improving personal presentation,• Participating in training, work experience,

employment programmes,• Develop a business plan,• If limited capability for work, attend a work

focused/health related assessment[check].

Work search requirement

• Take all reasonable actions[refer to CC].• Actions undertaken must be in addition to those that

give the claimant the best prospect of securing employment[How does this reconcile with the touchstone test?].

• Required actions;• Looking for work,• Applying for work,• Creating/maintaining an on line profile,• Registering with employment agency,• Seeking references.

Work search requirement.

• Claimant can spend fewer expected hours on work search activity if;

• Doing voluntary work 50% reduction[must improve prospects of work, agree in CC/set out the grounds, letters of support, remember always cover to avoid a sanction.

• Dealing with temporary child care responsibilities, domestic emergency, funeral arrangement or other temporary circumstances [define].

Work availability requirement.

• Most be willing to take up paid work/ attend an interview immediately.

• Exceptions;• Carer for disabled person or for a child & is accepted as

reasonable, take account of need to make alternative caring arrangements, can extend for one month to take up paid work or 48 hours for an interview.

• Doing voluntary work and accepted that work availability requirement would be met if available at one weeks notice for paid work/48 hours interview.

• Employed and required to give notice, if willing to take up work once notice period completed/interview 48 hours.

Work availability requirement.

• Can be varied in the in the following circumstances;• Caring responsibilities or physical/m/h difficulties may have a lower

expected hours requirement[remember importance of the CC].• Work search/work availability restricted to 90 minutes travelling

time from home.• Good work history, of a particular nature,paid at a particular level ,

up to three months from date of claim or ceasing to earn above his/her earnings threshold, can restrict to same if DM satisfied there is a reasonable prospect of securing work[define].

• Physical/ m/h condition that substantially limits, type of work or locations, will not be required to do or take up.

• Remember to obtain evidence to support /power of the EO.

Domestic violence.

• Defined as controlling, coercive, violent, abusive in a physical, sexual, mental and financial way.

• Victim of actual/threatened within 6 months, no work related requirements for 13 weeks, subject to;

• Most notify the DWP within 6 months of the DV & in the prescribed manner,

• Within one month of notifying provide evidence from a person acting in an official capacity[SW,POLICE,HEALTH CARE PERSON, EMPLOYER,TU OFFICER,CHARITY, VOLUNTARY ORGANISATION], to confirm. Must have had contact with the above.

• DV must have been inflicted by partner, ex partner or family member.• Not been subject to this provision in the past 12 months.• Not be living at the same address as the perpetrator at the date of the

notification.• This may assist many claimants so investigation required.

What are alternative payment arrangements?

• Jobcentre Plus can give you an alternative payment arrangement (APA) if you can't manage monthly payments of Universal Credit (UC) and there's a risk of financial harm to you or your family.

• The move to a single monthly household payment will be a significant change to the way most benefits are currently paid so the following alternative payment arrangements will be available to help claimants who need additional support:

• Paying housing costs (rent) directly to landlords.

• Making more frequent than monthly payments.

• Splitting payment of an award between partners.

Wherever possible, these alternative arrangements will be time-limited and support will be offered to help you move successfully to normal payment arrangements.

Universal Credit Guidance on personal budgeting

support

Personal budgeting support is about helping you to adapt to three key changes that Universal Credit brings:

• a single household payment;

• Being paid monthly; and

• rent paid directly to you - so you will pay your rent to the landlord yourself.

• The vast majority of claimants needing alternative payment arrangements will be referred for money advice so that they become more financially independent with a view to the payments arrangements ending when they are no longer needed.

• The money advice process filters claimants to the most suitable service and channel in the most efficient way.

Money advice will be offered online, by phone, or face to face.

• There will be different levels and types of money advice based on need; some claimants will be signposted to online services, some may be offered a single session over the phone, others an intensive face to face session with follow up call(s).

Simple guide to personal Budgeting Support

When can an alternative payment be considered?

APA

Trigger/ request

Landlords will be able to request managed

payments if a claimant is in arrears.

One month’s arrears will trigger a review

of a claimant’s case, and managed payments

to landlords will automatically apply after

two months of arrears.

Local organisations will be able to trigger

an APA review.

During the claim: claimant request

DWP states that claimants will be able to trigger

a consideration for APAs during their claim.

Universal Credit application form

A commitment to

‘carefully assess people’s capabilities before

they are moved on to Universal Credit’.

Tier One factors – Highly likely / probable need for alternative payment arrangements

• Drug / alcohol and / or other addiction problems e.g. gambling • Learning difficulties including problems with literacy and/or numeracy • Severe / multiple debt problems • In Temporary and / or Supported accommodation • Homeless • Domestic violence / abuse • Mental Health Condition • Currently in rent arrears / threat of eviction / repossession • Claimant is young either a 16/17 year old and / or a Care leaver • Families with multiple and complex needs

• The focus should be more around the type of ‘support’ provided rather than the accommodation type when considering if alternative payment arrangements are appropriate.

Tier Two factors - Less likely / possible

• No bank account • Third party deductions in place (e.g. for fines, utility arrears etc) • Claimant is a Refugees / asylum seeker • History of rent arrears • Previously homeless and / or in supported accommodation • Other disability (e.g. physical disability, sensory impairment etc) • Claimant has just left prison • Claimant has just left hospital • Recently bereaved • Language skills (e.g. English not spoken as the ‘first language’). • Ex Service personnel • NEETs - Not in Education, Employment or Training

Which of these do you think are most likely or maybe awarded APA

• Difficulty reading writing

• Multiple debts and not sticking to repayments

• Family with multiple issues eg mental health issues & alcohilism

• Fuels direct in payment as well as direct water payments

• Homeless 4 months ago but now in suitable accomodation

• Suffers from bipolar

Initial claim analysis

• It seems likely this will consist of a sift of

claimants when they apply for Universal

Credit using information a claimant enters in

their online form. This information will then be

used by a Universal Credit adviser to decide

whether to put APAs in place.

Form will need to be completed and be reflective of Claimants needs

APA or not?

• Steven claims Universal Credit. He has severe learning difficulties and lives in supported accommodation. He is referred for an alternative payment arrangements. It transpires that Pete’s brother, Joe, acts as his appointee and fully manages his brother’s financial affairs.

NO

• Joe has been looking after his brothers financial affairs for many years, ever since their parents passed away. He works part time and sees his brother regularly and is deemed capable of managing Pete’s Universal Credit. As a result an alternative payment arrangement is not considered appropriate in this case.

APA or not?

• Lucy is 26 years old and makes a claim to Universal Credit and following ‘Personal Budgeting Support’ data gather questioning, it comes to light that she has a drug addiction problem and has no bank account plus a history of debt. She is currently a regular user of cannabis and is not receiving treatment (she says her local support service can only treat class A users at present), she wants treatment and says without it she cannot stop ‘using’.

Yes

• She is therefore considered for alternative payment arrangements as risks spending a large proportion of her Universal Credit income on drugs. A decision is made to pay her pay her rent direct to her landlord and to pay her more frequently than monthly. She is referred for treatment and budgeting support services which include the set up of a budgeting (or ‘jam jar’) account. Her circumstances will be reviewed in eight months time.

No appeal to APA decision

• If Jobcentre Plus don’t agree

• Jobcentre Plus will write or email you giving you its decision about whether to pay universal credit direct to your landlord or make any other ‘alternative payment arrangements’. This should tell you the reasons for its decision and what you need to do if you disagree with its decision.

• You should have one month to write to Jobcentre Plus to ask them to reconsider. However, if they refuse you normally will not have any further right to appeal.

Claim analysis

There is insufficient detail about how the first siftwill work in practice. Relying on self-disclosurethrough the application form raises concerns.

It may miss the most vulnerable or, conversely,those who think they can cope.

Early results from Universal Credit Pathfinders suggest claimants are not requesting APAs even when prompted. Those just coping may not have any obvious challenges, some may be reluctant to share personal information or inaccurately judge their situation.

Shelter

Budgeting Advance• Budgeting Advance

• An advance payment of Universal Credit to help someone buy essential furniture or household equipment, for example. A Budgeting Loan Is being replaced by the Budgeting Advance,.

The amount of a budgeting advance depends on the expense you need

to meet. However, there are limits on the amount of an advance. The

following table gives the maximum amounts of a budgeting advance.

Your circumstances Maximum amount of a

budgeting advance

You're single and you're not responsible for a

child or young person

£348

You're a member of a couple and you're not

responsible for a child or young person

£464

You're responsible for a child or young

person

£812

Jobcentre Plus can't pay a budgeting advance of less than £100.

You have to repay a budgeting advance within 12 months (or 18 months in exceptional circumstances). Usually repayments will be deducted as installments directly from your universal credit payments.

Advance payment & Hardship payments

• Your first payment will be made one calendar month and 7 days after your date of claim and then calendar monthly after that.

• If you think you will find it difficult to manage while waiting for this first payment you can ask the DWP for an advance payment. This will be paid back out of your future Universal Credit payments.

• HPs - These if awarded will have to be paid back.

Advance payment & APA

• Sam applies for Universal Credit. He has a number of debts, including rent arrears and so asks the DWP for an advance payment and to be paid twice a month.

Agreed

• The DWP agree to his request– to ensure that he does not fall behind with his repayments. It is also agreed to pay his landlord direct and is referred for budgeting support.

• They will review his case in 3 months.

Sanctions.

• Look at the JSA experience.• Who is most likely to be effected by the imposition of sanction

under UC ?

Sanction will be imposed if non compliant with the CC and cannot show a good reason.If more than one sanction is imposed will run consecutively rather than concurrently, will continue to run if UC is reclaimed [less the number of days when benefit was not payment].Fixed sanction will not exceed 3 years.Sanction will not reduce UC award to less than zero.Will cease if no longer subject to work related requirement, or after a year of compliance if working and earning at least threshold for 6 months in that period.

Medium level sanctions.

• Those subject to all work requirements, who fail, without good cause to seek or be available for work.

• 28 days first failure,

• 91 days for a subsequent failure within a year.

• 16/17 year olds 7 & 14 days within the year, 40% loss of standard personal allowance.

lower level sanctions.

• Failure without good reason to undertake specific work search or work preparation activities or fail to attend or produce the required evidence at a compliance/work focused interview.

• Loss of 100% of standard allowance or 50% of standard couple allowance, until the requirement is met, plus a fixed period of 7 days for a first failure[over 18 year olds],14 days fore second lower level offence within a year and 28 days for a subsequent failure within 12 months.

• UC claimant who only have to attend work focused interviews and fail to do so without good reason.

• A sanction of 40% of SPA[40% standard couple allowance] apply until the interview is attended or the requirement no longer applies.

Good reason.

• Not defined in law, refer to case law.• DM Guide on what constitutes good reason refers to case law on what is voluntary,

misconduct, good cause and just cause.• Facts that would probably have caused to act as the claimant did. • Consider the following;• DV.• M/H condition.• Bullying, harassment,[employment].• Disadvantaged,homeless, disability ,dependency, learning difficulties, domestic

emergency, sincere religious conviction, caring responsibilities.• Would be significant harm to health or to health & safety of any person,

unreasonable physical/mental stress.• Expenses related to travel/childcare may be good reason if unreasonably high

relative to expected pay from employment, if pay at or above NMW will not be taken into account in deciding good reason.

• Claimant will need to try and resolve issue before leaving or good reason will not be accepted.

Mandatory reconsiderations.

One month from the date on the notice to seek a mandatory reconsideration.

This time limit can be extended up to a maximum of 13 months from the date of the decision if three criteria are satisfied;

There are exceptional circumstances that have for not having lodged the MR within the standard time limits.

There is a reasonable prospect of the MR succeeding.

IT is in the interest of justice to allow the late MR.

Mandatory reconsiderations.

• How to approach.• Lodge as soon as possible. Only 38.2% of negative

decisions were contested in 2013.• System is blocked and not unusually for decision

to take 3 months.• A total of 46.8% of MR were successful.• Set out in writing, experience of current MR is

that with good reason & non compliance decisions that full details/supporting evidence/equals quicker/positive decisions.

Mandatory reconsiderations.

• Once a MR is lodged the DWP will phone the claimant/important that he/she is consistent with the information in the letter.

• The above is a problem area as often this does not happen and it undermines the material value of the case/prepare client.

• Check how the client fits into the guidelines/are learning difficulties,dependency,m/h,language a factor?

• Have the DWP provided the required level of support? [From 28/4/14 mandatory English courses[.

Appeals.

• If the MR is not successful, one month from the date on the notice to lodge the appeal.

• Late appeal the same as MR.

• Unable to appeal APAs, but a request to look again can be made.

• You can't appeal against a decision about your entitlement to a budgeting advance