webinar: how can housing associations respond to another round of welfare reforms?

We simplify the welfare system

Housekeeping

www.policyinpractice.co.uk

1. Audio check 2. Please ask questions3. Finish by 11:304. Webinar recording5. Next steps

Today’s speakers

Bill IrvineUniversal Credit Advice

Deven GhelaniPolicy in Practice

About Bill Irvine

• Over 30+ years experience• Started career in accountancy in private sector• Move to local government• Effective Welfare Rights Advocate• Head of Revenue, Benefits and Advice• COSLA's rep to DWP HB Standing Committee• Board Member at SFHA and Trust HA Ltd• Feature writer for housing sector titles• Specialist knowledge advisor and advocate


About Deven Ghelani

• Director of Policy in Practice and the Welfare Reform Club

• Expert on welfare policy, in particular the recent welfare reforms

• Part of the team that developed Universal Credit at the Centre for Social Justice

• Writes on welfare policy, government spending and employment.


About Universal Credit Advice

• Involved in most major social security changes since early 80’s

• Help housing associations, private landlords and voluntary sector organisations to negotiate with DWP

• Provide representation on behalf of their clients through formal tribunal process

www.welfarereformclub.net

About Policy in Practice

Consultancy

SoftwarePolicy


Today’s Agenda1. Universal Credit – the policy

• Progress update on rollout• Context of £12bn of savings

2. Practical look at Universal Credit in practice• Housing element• Date of claim • Direct payments, LMPs and 3rd party deductions

3. Questions and Answers with Bill and Deven

4. Tools for the job


Have you started to roll out Universal Credit yet?


JSAChild Tax

Credit

ESAHousing Benefit

Working Tax Credit

Income Support

Why Universal Credit?


https://www.youtube.com/watch?v=E0n3j_Hd6eE

Universal Credit: the story so far

• Why Universal Credit

• National Audit Office: A Progress update

• The impact of the £12bn


Universal Credit: progress update 12

Slow and Steady: De-risking timetables

Universal Credit caseload, millions


Rapid scaling up: The digital service

Timetable for digital development

The Digital Service to date: Sutton… Croydon, Southwark in the near future

http://policyinpractice.co.uk/case_study/welfare_reform_impact_assessment_leeds/


The Context

• £12bn of savings

• No uprating of benefits• Cuts to Child Tax Credit• Cuts to Housing Benefit?• Benefit cap to £23,000• Loss of housing benefit to

18-21 (25?) year olds


Over to Bill ...


W W W. U C A D V I C E . C O . U K

Universal Credit for “Working Age” claimants

Policy & Practice


For council tenants and tenants of Registered Social Landlords (including Housing Associations)◦ Core rent + eligible service charges will continue to be assessed separately from

other elements of UC.

◦ From the resulting figure you must deduct:

◦ a) Under-occupation penalties & Housing Contribution costs (HCC) for any Non-Dependants (sons, daughters, etc.).

◦ b) Amounts applicable due to imposition of Benefits Cap (where more than £1517pcm (single claimant) or £2167pcm (couple/single parent).

“UC housing element” will be incorporated, with other elements, into one single payment; paid on a monthly basis, into the claimant’s bank account, monthly, in arrears.

If the contractual rent is charged weekly, fortnightly, 4 weekly, DWP will simply convert to monthly.

Importance of highlighting monthly/annual rent to DWP!

Housing ElementWhat rent will be covered?


DWP is trialling a 4 stage process for the April 2015 “rent increase” cases involving those RSLs in “active” areas. http://universalcreditadvice.com/ha/2015/03/universal-credit---annual-rent-increase-process-revealed

Meantime - Onus on claimant to include housing costs in UC claim; produce a rent statement and/or tenancy agreement + expected to notify annual rent increase in advance of April or date of change.

Delays in claiming and reporting changes – very limited - restricted to 1 month on either backdating (new claim) or revision (change of circumstances).

Changes in circumstances applied on “whole month” “assessment period” basis, producing “winners & losers”.

£50 penalties can also be imposed for late notification of changes in circumstances causing overpayments.

Assessing Housing Element – Point of claim & in future?

http://universalcreditadvice.com/ha/2015/03/universal-credit---annual-rent-increase-process-revealed

http://universalcreditadvice.com/ha/2015/03/universal-credit---annual-rent-increase-process-revealed


Universal Credit claim submitted on 3rd July, 2015 First payment made 1 month + up to 7 days later i.e. 10th

August, 2015 “Benefit Assessment Period” (BAP) 3rd July to 2nd August i.e.

period covered by first payment Payment date thereafter is 10th of every month!

Equally, benefit assessment period (BAP) is 3rd ……………….2nd of each subsequent month.

Any change in circumstances is assumed to have happened on the first day of the BAP and should be applied from the start of the BAP period in which it occurs

Exception – partner, child, non-dependent dies; existing award unaffected until 2 months after month of death.

Date of Claim, first payment & “whole month rule”?


Benefit assessment period operates from: 3rd …………………………………………2rd

◦ How would UC be affected by a new baby born on 1st of month?

◦ How would son (18) leaving to go to University on 29th for a period of 3 years, staying in residential accommodation will affect his mother’s (single parent) award – 2 bed property, no other children?

◦ George (56) who lives with wife Mildred dies on 27th. How would this affect his widow’s UC award?

◦ Couple Tom & Katie claiming UC split on 22nd; Katie & kids remain in your tenancy; Tom (whose name appears on tenancy agreement) reports split to DWP by phone and moves into PRS tenancy. How would this impact on their respective UC entitlement and “housing costs”?

Assess the impact of following changes in circumstances?


Tom and Katie were entitled to UC as a couple. Their assessment period (BAP) was the 3rd of the month to the 2nd of the following month.

They cease to be a couple on 22nd June. Tom rings up to notify DWP of this on that same date. The DM terminates the award of UC from the first day of the

assessment period in which this change occurs – namely 3rd June. Tom makes a new claim to UC as a single person. He makes the

claim by telephone and is awarded UC from 22nd June. He also asks for a backdate (so that he does not lose out financially) and is paid from 3rd June to 21st June on a proportional basis.

His new BAP runs from 22nd to 21st and he’s paid normally on 29th of each subsequent month; next payment 29th July.

Katie is awarded UC from 3 June, as a single claimant. She does not have to make a claim. Her award of UC is suspended until her circumstances and wish to continue claiming are confirmed to DWP.

Couples split during BAP


Tony (35) is single; has his own RSL tenancy with £350 rent; he receives UC with a BAP of 1st to 31st; received last payment on 6th June.

Eleanor (35) with her two kids has an RSL rent of £380. BAP is 15th to 14th with payment date of 21st. Her next payment is due on 21st July.

Tony decides to move in with her on the 18th June and reports this by phone to DWP. He also immediately gives notice to his outgoing landlord of his intention to vacate his tenancy.

UC households combine!


Become a couple on 18th June 2015 Tony’s BAP

◦ 1st ……………………………………………………..31st

◦ Next payment due on 6th July Eleanor’s BAP

◦ 15th ……………………………………………………14th

◦ Next payment due date 21st July

What happens to existing claims?

Whose BAP is used for couple?

Next payment(s) & Date(s)?

Impact on Tony’s old tenancy?

Households Combine - Tony & Eleanor


UC default position is to pay tenant, rather than landlord. However, Lord Freud announced: 1. Payment of the ‘housing cost’ element could be paid from day one in

“vulnerable” and/or “delinquent” cases (see next slide); 2. Would automatically be redirected to landlords when 2 months of rent

arrears accrued; “Coventry Judgement” approach. 3. The DWP, if alerted by the RSL, that 1 months’ arrears had built up due

to housing costs not being handed over; payment of the housing costs would be suspended and a decision made as to whether payment should, at that point, be reverted to ‘Landlords’ Managed Payments’;

3. Tenants could be required to repay the missing rent by way of accelerated deductions of 10-20% of their UC standard allowance, assuming they have no other ‘third party’ deductions. Otherwise, 10% or 15% will apply.

5. DWP Guidance https://www.gov.uk/government/publications/universal-credit-and-rented-housing

Direct Payments to Landlord

https://www.gov.uk/government/publications/universal-credit-and-rented-housing



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

Tier Two factors - Less likely / possible need for alternative payment arrangements

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


LMPs & Rent Arrears application https://www.gov.uk/government/publications/universal-credit-and-rented-housing

Landlord Managed Payments (LMPs) & Third Party Deductions

- Proof of rent arrears which must show the balance on the rent account including the amount of rent outstanding and the amount of rent due each calendar month e.g. Rent book, rent account, letter from Landlord on letter-headed paper confirming the balance on the rent account, including a calculation of the amount of rent outstanding, and the amount of rent due each calendar month.

'- To enable the request for the managed payments to the Landlord to be linked to the correct Universal Credit claim it is advised that the National Insurance number section be completed. If the National Insurance number is not known then please provide the tenant(s) Date of Birth





Universal Credit Regulations 2013 http://www.ucadvice.co.uk/housing-associations/2013/06/universal-credit-regulations-2013

UC Briefing Notes http://www.ucadvice.co.uk/housing-associations/2013/08/universal

-credit---advice-for-frontline-staff

UC Bulletins http://

www.ucadvice.co.uk/housing-associations/subsection/bulletins

UC discussion forum http://www.ucadvice.co.uk/housing-associations/forums Calculator http://universal-benefit-calculator.co.uk/universalcredit

UC Advice website information

http://www.ucadvice.co.uk/housing-associations/2013/06/universal-credit-regulations-2013




http://www.ucadvice.co.uk/housing-associations/2013/08/universal-credit---advice-for-frontline-staff



http://www.ucadvice.co.uk/housing-associations/subsection/bulletins

http://www.ucadvice.co.uk/housing-associations/subsection/bulletins

http://www.ucadvice.co.uk/housing-associations/forums

http://www.ucadvice.co.uk/housing-associations/forums

What does this mean for you? and what you can do about it? • Local Authorities face lots of difficult choices, overseeing £12bn of cuts

with reforms aimed at changing behaviour. The combined impact on households is changing, complex and confusing.

• The risk is that households won't get the right support – both financial support and support toward independence.

• Without both, there won't be enough available to go around. This will cost the council through impacts on other services.

• You need to:• explain a complex picture to cabinet • target and tailor support effectively (SHBE)• Have a tangible impact on behaviour


Any Questions?


What we covered today

1. Universal Credit – the story so far2. Practical and detailed look at Universal

Credit rollout 3. Tools for the job


Next Steps (1)

We’ll email you:• This webinar recording • Leeds CC case study


Next Steps (2)Please join for our next webinar:

Policy in Practice software demoThurs 9 July 10:30 to 11:30

Register www.policyinpractice.co.uk/events


Deven [email protected]

@deven_ghelaniwww.policyinpractice.co.uk

Thank you

Bill [email protected]

www.ucadvice.co.uk

The Context

• £12bn of savings

• No uprating of benefits• Cuts to Child Tax Credit• Cuts to Housing Benefit?• Benefit cap to £23,000• Loss of housing benefit to

18-21 (25?) year olds


webinar: how can housing associations respond to another round of welfare reforms?

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