Universal Credit

Social Landlords
Presentation

1
 Housing

Universal Credit Income based

Benefit Income based
Employment
Jobseekers and Support
Allowance Allowance
Will eventually replace six main
working age benefits with one simple payment Universal
Is paid monthly Credit Working
Child Tax Tax
Can be paid to people in work Credit Credits
or out of work

Income
Support

How is it different?
Claimants will be able to apply for their benefit online. Nearly 80 per cent of benefit claimants
already use the internet, but telephone and other support services will be available if needed.
Universal Credit will be paid monthly, in line with most people working in the UK and will
include any support for housing costs claimants are entitled to.
Universal Credit will require claimants to accept a Claimant Commitment which sets out what
is expected in return for receiving assistance, taking into account personal circumstances and
capability to earn. Those who break the terms of their commitment will face penalties.
Universal Credit Work Services Coaches will help claimants become more independent by
supporting them in their worksearch activities. They will help claimant plan and focus their
jobsearch as well as set them actions that give them best chance of finding work.
Real Time Information (RTI) from HMRC records all earnings for PAYE employment and makes
it accessible to the Universal Credit claims system

2
2
 Universal Credit - its all about work
Universal Credit aims to reward work. No 16 hour rule and no limits on the
number of hours someone can work. The Universal Credit payment only reduces
gradually as their take home pay increases so claimants wont lose all their benefits
at once if they are on a low income

Universal Credit will encourage a new type of relationship with claimants.

Work Coaches will help claimants to become more independent by supporting them
in their worksearch activities. They will help claimants plan and focus their jobsearch
as well as set them actions that give them the best chance of finding work

Universal Credit aims to support jobseekers through the Claimant

Commitment to raise their expectations of what they can achieve, and to
encourage responsibility. Those who are fit and ready for work will be expected to
look for a job on a full time basis dependent on circumstances

Universal Credit claimants are expected to use Universal Jobmatch, an

intelligent job matching service that helps employers to get the best fit for the jobs
that they have on offer

3
 Delivering the policy - how Universal Credit is rolling out to
eligible claimants
Universal Credit rollout began on 29 April 2013 in Ashton-under-Lyne in
Greater Manchester
From 30 June 2014, we began taking new claims for Universal Credit from
couples
From 24 November 2014, we began to expand Universal Credit to families
From February 2015, Universal Credit will roll out in all jobcentres and
local authorities for new claims from single people who would otherwise
have been eligible for Jobseekers Allowance, including those with existing
Housing Benefit and Working Tax Credit claims. Our local
JCP roll-outs include :-
Feb April 2015
Corby / Daventry / Harborough / Hinckley and Bosworth / Melton
May-July 2015
Charnwood / Kettering
December 15 April 16
Oadby and Wigston / Blaby / Leicester City

4
4
 Eligibility

Claimant goes
to
[Link]
to check latest position
as Universal Credit
gradually expands

5
5
 Examples of eligibility for single people include :-

Not be homeless, in supported or temporary accommodation

nor a homeowner

Aged between 18 years to 60 years and six months

Not be receiving JSA, ESA, IS, IB, DLA, SDA or PIP

Not have a caring responsibility

Not be self employed, training or in education

Not have savings in excess of 6000

Have lived in the UK for at least two years, and not been
abroad for more than four weeks continuously during that time

Not expect to receive take home pay of more than 330 in

the next month

6
6
 Claimant Journey

Seek Work

Make Claim Provide Award

Submit Claim Confirmation of Organise Confirmation of
for personal notification
interview Interview Finances starting work
Universal Details and
Credit payment

7
7
 Universal Credit Service Centres
Eight Service Centres
Bolton
Glasgow
Bangor
Middlesbrough
Makerfield
Dundee
Basildon
Grimsby

Virtual Telephony service that is delivered through all Service

Centres

Specialist Housing Team in three Service Centres

LA secondees sited in one Service Centre

8
8
 Universal credit rates
Standard Allowance:-

Single claimant aged under 25 249.28 pcm

Single claimant aged 25 or over 314.67 pcm

Joint claimants both under 25 391.29

pcm

Joint claimants either is 25 + 493.95 pcm

9
9
 Housing Cost Element
Social sector tenants: Actual housing costs(excluding
ineligible service charges and utility charges), less any under-
occupancy deduction.

Private sector tenants: Lower of actual costs or the Local

Housing Allowance.

Under Occupancy Deduction:

14% (one room under occupied)
25% (two or more rooms under occupied)

Housing Cost contribution :

Non dependants - 68.68pcm

10
10
 Work Allowances
Higher work allowance is appropriate where the claimants UC
award contains no amount for the Housing Cost Element :-

Single claimant
No dependant children 111
Responsible for one or more children 734
Limited capability for work 647

Lower work allowance where the claimants UC award does

contain an amount for the Housing Cost Element

Single claimant
No dependant children 111
Responsible for one or more children 263
Limited capability for work 192

11
11
 James, Single Claimant under 25

Standard UC Allowance = 249pcm + rent 261pcm = 510pcm

12
 James, Single Claimant under 25

13
 James UC allowance = 510pcm

Wages = 329pcm
less work allowance = 111
218pcm

65% of 218 = 142pcm

This amount is deducted from his UC allowance

510 - 142 = New amount of UC 368pcm

Total income of UC 368+ Wages 329= 697pcm

14
 James, Single Claimant under 25

15
 James UC allowance = 510pcm

Wages = 548pcm
less work allowance = 111
437pcm

65% of 437 = 284pcm

This amount is deducted from his UC allowance

510 - 284pcm = New amount of UC 226pcm

Total income of UC 226+ Wages 548= 774pcm

16
 An example claim

+7 days
31/01 28/02

Regular Universal
Credit Assessment
Period
01/01 1st Universal 2nd Universal
Date of Claim Credit Credit Payment
Payment Calculation:
Calculation / 01/03
notification
to claimant:
01/02 1st Universal 2nd Universal
Credit Payment Credit Payment
Received by Received by
Claimant: Claimant:
07/02 07/03

17
17
 About Universal
Credit Overview

18
 How to access About Universal Credit?

19
 About Universal Credit

Claimants and Agents should use About Universal Credit to support them in answering
general enquiries.

20
 Using About Universal Credit

21
 Universal Credit
Advances

22
 Universal Credit Advance (new claim or CoC)

A Universal Credit Advance (new claim) or (change of circumstances) is an advance

payment of a claimants future award of Universal credit which is recoverable from
subsequent payments of benefit. The purpose of this is to:
provide emergency funds where a claimant doesnt have enough money to support
them through the period of 5 weeks until their first UC payment or
provide access to financial support where a claimant has a change in
circumstances, such as the birth of a child that will increase their UC award. They
will have to verify the change in circumstances in order to request a (change of
circumstances) Award or
provide an interim payment to pay a claimants full award where their payment due
date has been reached but their benefit cannot be paid for technical reasons
It is a Secretary of State decision to make a UC Advance and it is a discretionary
decision that depends on the claimants individual circumstances. The discretionary
nature of the Advance means that the Department can identify and support those most in
need. Any decision will not carry the right of appeal but the claimant can ask for a
reconsideration of the decision.
The claimant will need to contact the UC service centre to request an advance.

23
 Universal Credit Advance (new claim or CoC)
The UC Advance (new claim) and (change of circumstances) will be available to
claimants who are:
in receipt of or who have an underlying entitlement to Universal Credit based on
the information they have provided
in financial need there must be a serious risk to the health or safety of the
claimant, partner or any child/young person they are responsible for. They must
have no access to personal resources (including cash and capital).
can afford to repay the Advance over the next 6 months.
More than one advance can be made on a New Claim as long as the total amount
doesnt exceed the maximum. For a reported Change of Circumstances claimants can
have more than one advance if it relates to a different change.
The maximum advance is:
50% of the total indicative monthly award before the claimants payday or
50% of the additional increase in the award if there is a change of circumstances
that increases the award or
100% where the pay day has passed
The recovery period will be 6 months starting from the first benefit payment except for
those Advances made at the due date for payment of the UC, in which case recovery is
made immediately from arrears.
In exceptional circumstances the repayment period can be deferred for 3 months. This
is expected to be when recovery takes place not before the advance has been agreed.

24
 Personal Budgeting Support

Universal Credit supports claimants to get used to monthly payments and

managing finances successfully, making it easier to move into work.

A range of support services are available to claimants not used to managing

money in this way:
Personal planner is available on [Link] to help claimants understand
and prepare for financial changes.

Online budgeting tools for claimants who can help themselves - such
as those offered by Money Advice Service and Citizens Advice.

Jobcentre Plus Work Coach will direct claimants to help and advice in
their areas. This could include help from local organisations to open a
bank account or to put together a monthly budget. Some people may
also be offered support over the phone or face to face to help them.

25
 Financial Products
75% of people in employment are paid earnings monthly in arrears. Monthly
payment of Universal Credit will:
Prepare households for the reality of budgeting on a monthly income.
Ease the transition into work.
Make it easier for households to take advantage of cheaper tariffs for essential
costs such as utility bills.
The majority of Universal Credit claimants will continue to receive their benefit
through mainstream, transactional bank or building society accounts.
HM Treasury have announced that nine banks and building societies have made
a voluntary commitment to improve basic bank accounts by the end of 2015.
The Credit Union Expansion Project is investing 38 million into the
modernisation and expansion of credit union services.
In addition, plans are being developed so that Universal Credit can be paid into
all types of Credit Union account by spring 2015.

26
26
 Who do we think may require Universal Support -
delivered locally?
Claimants with People with Those under the
mental health Financial Inclusion supervision of the
issues or severe debt Troubled Families
issues Initiative
Geographically Domestic Violence
isolated people victims Non EEA citizens
including refugees
People with
Multi Agency literacy/numeracy Homeless people
Public Protections difficulties
Agreement People with
(MAPPA) restricted Entitled 16/17 year addiction problems
claimants olds (drugs/alcohol/gam
Prison leavers People with physical bling)
and/or sensory
disabilities Care leavers
People with
Claimants with English language
learning difficulties limitations

27
 Alternative Payment Arrangements Consideration Factors
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

28
28
 Personal Budgeting Support

Alternative Payment Arrangements

For a minority of claimants, alternative payment arrangements may be required;

these might include:
paying the rent directly to the landlord
making more frequent than monthly payments
splitting the payment within the household.

We will also have the option to make rent payments direct to the landlord if a
claimant reaches a certain level of rent arrears.

29
 How to Request a Managed Payment
Landlords can use the form available on [Link]
Universal Credit: Rent arrears form to apply for a managed payment of the housing
element and recovery of arrears.
The information they will need to supply includes

Tenants name, address, and if known their date of birth and national insurance
number
Current tenancy agreement including
Proof of the rent arrears which must include the amount of rent outstanding and
the amount of rent due each calendar month
The landlords contact details their name and address plus their bank/
building society account number and sort code for the payments.
Any reference number / transaction ID for that tenant

Once UC receives this information they will decide whether or not a managed
payment is appropriate and inform both the landlord and claimant.
The claimant will also be offered personal budgeting support.

30
 Housing Team MI / Performance
The UC caseload at the end of June 2015 was 88,616.
Approximately 30% of the UC caseload includes Housing Element
The SC receive around 70 requests per day for an Alternative
Payment Arrangement direct to the landlord
The average amount of arrears already accrued by tenants before
joining UC in the month of July was 1340.33
The highest amount of arrears already accrued by a tenant before
joining UC in the month of July was 10580.30
Average days to process an Alternative Payment Arrangement from
receipt of all evidence is 4.9 days
Percentage paid in 1st available Assessment Period 95%

3
31
 Escalation Route

32
 Frequently Asked Questions

What budgeting support will be available and how do claimants access this?
Personal budgeting support will be offered to anyone claiming Universal Credit. Claimants
needing help with monthly budgeting will be identified at their first Universal Credit
appointment with the Jobcentre and will be referred for personal budgeting support
Many claimants will be able to help themselves through the online budgeting support
services that are already available, and we will help people who have a clear need for
more intensive support.
Money advice will be offered at a national and local level, and will include a mix of online,
phone and face to face services.
Will managed payments be reviewed?
Yes, all managed payment will be subject to a review. The UC agent will decide the
review period taking into account the claimants particular circumstances and level of rent
arrears. At the review, they will decide if the claimant is now capable of managing the
standard monthly payment.
When would a managed payment not be considered appropriate?
A managed payment is not considered appropriate if there is no financial risk to the
claimant or their family and / or any rent arrears are being satisfactorily managed.
These arrangements will be kept under review as Universal Credit rolls out and
may be subject to change.
The full guidance can be viewed on [Link] Universal Credit and Rented Housing

33
 2015 No. 46
SOCIAL SECURITY
The Social Security
(Information-sharing in relation
to Welfare Services etc.)
(Amendment) Regulations 2015
Made 21st January 2015 - - - -
Laid before Parliament 23rd
January 2015
Coming into force 13th
February 2015 --

34
35
 Preparing your Tenants

What are you planning to do to support your tenants?

Preventing the need for alternative payment arrangements

Increasing personal responsibility

What are you going to do to prepare your organisation and staff in advance of
UC?

Would you consider moving tenants to Direct Payment now?

36
 Temporary
Accommodation

37
 Temporary Accommodation

The definition of homeless or living in temporary accommodation has been

amended. For UC, any claimant does not have to be living on the streets to be
treated as homeless.
When a claimant reports a change of address or contact details, the UC Agent
will ask if they have moved into temporary accommodation and the name of the
LA which placed them in Temporary Accommodation.
By temporary accommodation we mean:-.
housing arranged by a LA because they have decided that the tenant
is homeless
in all cases the accommodation must be allocated by the LA or by a social
housing provider through arrangements made with the LA.

The UC Agent will advise the claimant of the evidence which is required to
progress their change in circumstances.

38
 Temporary Accommodation Evidence

Evidence required for Temporary Accommodation this will normally be a

Licence to Occupy from the LA which must include:
name of all licensees on the Licence to Occupy
accommodation address
current rent and frequency (for example. monthly, weekly)
Landlord details (name, address)
signed and dated by the Landlord (this can be an electronic signature)
The evidence that the claimant provides must be in date when the claim for
UC was made.
In the case of Temporary Accommodation the claimant is known as a
licensee, not a tenant.

From the evidence received, the UC Agent will determine if the tenancy is for
a Social or Private Rented Sector.
Regardless of whether the accommodation is Private or Social Rented Sector
the UC entitlement will be calculated on the basis of Private Rented
Sector accommodation.

39
 Specified
Accommodation

40
 Legislation Change to Terminology 1/2
From November 2014 the legislation has changed from using the terminology
Supported Exempt Accommodation to Specified Accommodation. Supported
Exempt Accommodation is now included within Specified Accommodation.
Specified Accommodation is when a claimant has been placed in order to meet a
need for, and receive care, support or supervision.
The categories are:-:
Category 1 - Supported Exempt accommodation
For UC, supported exempt accommodation is a resettlement place or
accommodation provided by a non-metropolitan county council (in
England), housing association, registered charity or voluntary organisation.
The organisation providing the accommodation or person acting on their
behalf must provide the Claimant with care, support or supervision.
Category 2 - Accommodation that is provided by one of the following in which the
claimant has been placed in order to meet an identifiable need for care, support or
supervision and where he receives that care, support or supervision:
county council
housing association
registered charity

41
voluntary organisation
 Legislation Change to Terminology 2/2

Category 3 Accommodation for victims of domestic violence where

they are managed by:
local authorities
county councils
housing associations
registered charities
voluntary organisations
Category 4 - Hostel accommodation provided by local authorities
where the following is provided:
care
support
supervision

42
 Third Party
Deductions

43
 List of Third Party Deductions

There are currently eleven different types of Third Party Deductions

(TPDs) , set out in the regulations:
Mortgage Interest arrears (where the lender is not part of the MID
scheme)
Owner-occupier service charges arrears
Rent and/or service charges arrears
Gas arrears
Electricity arrears
Council Tax or Community Charges arrears
Court Fines (or Compensation Orders)
Water arrears
Child Support Maintenance (Old Scheme)
Integration loan arrears
Eligible loan arrears

TPDs can be requested by either the claimant or a Third Party.

44
 Landlord Preparation
1. Know your tenants
Who might need support to pay their rent?
Do you know who is/isnt unemployed and what benefits they may claim?
Does your housing management system allow you to store and retrieve tenant
information easily?
2. Working with Staff
Who needs training?
Do you need to review existing staff structures?
3. Communications
Staff and Tenants - change in culture
Make every contact count
4. Rent collections/payments
Have tenants got up to date tenancy agreements ?
Do they know what is included in their rent (rent free weeks/service charges) ?
Flexible payments ?
Do you need to revise your process and increase resource this area?

45
 Case study 1

Pete claims Universal Credit. He has severe learning difficulties and

lives in supported accommodation. He is referred for alternative
payment arrangements. However it transpires that Petes brother,
Joe, acts as his appointee and fully manages his brothers financial
affairs. 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 Petes Universal Credit. As a result an alternative payment
arrangement is not considered appropriate in this case.

46
46
 Case study 2

Gary is 22 and not in education, employment or training and claims

Universal Credit. Following questioning, it comes to light that he has
dyslexia, and struggles to read; he does not understand basic written
documents and finds it difficult to manage his finances. He is
referred for alternative payment arrangements and during the
conversation with him and the local support agency, we discover that
he also has other debts and although he does have a repayment
plan in place he is not sticking to the terms and therefore risks
further action if he continues to fail to pay. He is also in debt to family
members and is paying small amounts in erratic ways and well
below the agreed repayment plan. He continues to borrow more
money from friends to cover debt payments. This is causing him a lot
of anxiety. It is agreed to pay his rent direct to his landlord and he is
referred for budgeting support services. His circumstances will be
reviewed in six months time.

47
47
 Case study 3

Naveed claims Universal Credit following his discharge from a long

spell in hospital, although his health condition is poor he is now in
recovery. During his spell in hospital he accumulated some debt and
his English is not very good. Following questioning he is considered
for alternative payment arrangements. During the interview with
Naveed and his health worker, it transpires that he considers himself
financially capable, he explains that he has an active bank account
with direct debit facilities, but would welcome some support to get
the debts he has accumulated in order. Alternative payment
arrangements are therefore not considered appropriate and he
receives his Universal Credit via the standard monthly payment. He
is referred for budgeting support services to help him set up a
repayment plan to help him clear his debts.

48
48
 Case study 4

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. 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 rent direct to her landlord and to pay her
more frequently than monthly. She is referred for treatment and
budgeting support services. Her circumstances will be reviewed in
eight months time.

49
49
 Case study 5

Jane is a 29 year old woman, with a 1 year old son. Her husband was violent
and, with the help of the police, she and her son fled to a refuge. She took
with her only the clothes she and her son were wearing, with no other items
and no money. She claims Universal Credit and with the help of the refuge
support staff she requests alternative payment arrangements. She is now
facing upfront expenses as she fled without any money / credit cards etc. A
decision is made to pay her more frequently than monthly and to pay her
housing costs direct to the refuge as well as a Universal Credit advance.
Money advice is also put in place as well as the support she gets from the
refuge to rebuild her life. It is decided that her circumstances will be reviewed
once she leaves the refuge.
After staying in the refuge for seven months, she has moved into her own
tenancy, she continues to receive support and counselling from staff in the
refuge. She now has an active bank account with direct debit facilities and
feels capable of managing her own financial affairs. Alternative payment
arrangements are no longer considered appropriate and she moves to the
standard monthly payment.

50
50
 Third Party Deductions under UC

Single priority order for deductions

Housing related deductions such as rent arrears are top of the
priority order
Others include utility arrears, benefit overpayments,
Rent arrears currently 10% of the claimants UC standard
allowance
No more than 40% of claimants UC standard allowance to cover
all deductions
Priority order applied when insufficient UC in payment to meet
all deductions

51
 Universal Support - delivered locally
(Summary)
We want people to manage their own finances whether in or out of work
We will offer Personal Budgeting Support at the start of their claim to UC and if
required refer them to the LA to arrange this
Money Advice and Financial Products available
Partnership delivery with LA and landlords is key and PBS trials are taking place in
11 LA areas
If necessary Alternative Payment Arrangements considered
Landlords expected to manage rent payments and recover arrears
Managed payments considered on case by case basis
Can be requested by landlords or claimants
If claimant has accumulated one months rent arrears due to persistent
underpayment we will intervene early to review financial support needed and make
managed payment to landlord if appropriate
Two months rent arrears: we will pay housing element to landlord and if requested
take steps to recover rent arrears from remaining UC
Claimant will receive PBS and be expected to return to personal management of
rent
Dedicated DWP team at Service Centre will manage housing and APA cases with
SPOC and dedicated e mail address for social landlords

52
 Useful links for stakeholders
An introduction to Universal Credit video
[Link]
Universal Credit pages on [Link]
[Link]
A toolkit for Partners
[Link]
The Claimant Commitment
[Link]
commitment
A Personal Planner to help claimants prepare for Universal Credit
[Link]
A pictorial representation explaining Better off in Work
[Link]
[Link]
Budgeting help and support
[Link]
Operating Guidance for Personal Budgeting Support & Alternative Payment
Arrangements
[Link]
[Link]
[Link]
[Link]
The Local Support Services Framework
[Link]
[Link]

53
 Communications What weve done so far

[Link]

Claimant Leaflet

Partner Toolkit

Infographics

Videos

Employer video Universal Credit in

the hospitality industry
Judi Leavor, Center Parcs

54
54