Universal Credit Presentation

1st September 2015

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Welfare Reform

Our reforms will…

The Welfare Reform Act aims to introduce a simpler, fairer benefits system that helps ensure people are better off in work than on benefits.

Prepare the long-term unemployed

for the world of work

Provide unconditional support for those

who need it

Ensure people receive a fairer pension

and are encouraged to save for retirement

Help to ensure people are better off in work

than on benefits

SupportingFamilies to stay together

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Universal Credit

is at the heart of these reforms. It aims to simplify the benefits system and help and ensure

people are better off in work than on benefits while providing support for those who need it

Welfare Reform

The case for change

• There are still too many people for whom the current welfare system doesn’t work.– Weak financial incentive in the current system– Risks to household and income due to both moving into, and potentially

back out of, work

• Universal Credit has been introduced to tackle the structural problems which persist in the legacy welfare system.

• By creating a single system for those in and out of work, Universal Credit ensures that work pays and more work pays for everyone.– Flexibility – rules allow to resume claims easily should circumstances

change within 6 months of initially moving off Universal Credit.– Simplicity – Universal Credit removes requirement to provide similar

information to different organisations. (HMRC, LA’s and DWP)

Simplifying the benefits system

• The legacy welfare system is complex in its structure, administration and how the different qualifying conditions interact with each other.

• To simplify the legacy benefit system DWP has:– Created a new legislative framework.– Implemented a single system of means tested support.

• Universal Credit provides a new single system of means-tested support for working-age households who are in or out of work.

• All elements are assess in a single claim which removes the need to claim different means-tested benefits from different agencies.

.

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Delivering the policy - how Universal Credit is rolling out to eligible claimants

• Universal Credit rolled out in Somerset during March and April 2015.

• It rolled-out across Cornwall during May, June and July 2015.

• Universal Credit will role out across Greater Devon on 9th of November 2015.

• It will role out across Torbay and Plymouth on 25th of January 2016.

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Universal Credit is rolling out to eligible claimants

• Initially new claims can be made if the customer is single, aged 18 to 60yrs 6mths and are available for work.

• They must be a GB National normally resident in GB, have a National Insurance Number and a suitable Bank, Building Society or Credit Union account.

• Includes customers who are responsible to pay rent, except those in Supported Accommodation.

• Other exceptions apply, full details available on Gov.uk

What’s different about Universal Credit?

IT ENCOURAGES

WORK

IT’S LIKE WORK

IT’S ABOUT WORK

PAID MONTHLY

PAID DIRECTLY

CLAIMANT COMMITMENT –

LIKE A CONTRACT

IN AND OUT OF WORK

CLAIMANT COMMITMENT

REQUIREMENTS

FULL TIME WORK SEARCH

EARNINGS, NOT HOURS A SIMPLE TAPER

SO BETTER OFF IN WORK

EASY TRANSITION UC TO WORK (AND

BACK)

Universal Credit – one year on

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Local Area

Support for claimants with complex needs

BudgetingWork

OnlineHousing

Support for claimants

LA Services

National Partners

Local Partners

Jobcentre Plus

Alternative Payment

Arrangements

Moneyadvice

Financial products

Claimants managing their

money

Personal Budgeting Support - Overview

REQUIREMENT FOR A PERSONAL BUDGETING

STRATEGY IS DRIVEN BY THESE CHANGES

Personal Budgeting Support - Context

Housing costs direct to tenant

Single payment to household

Monthly Payment

We want to help people to be able

to manage their own finances successfully,

whether they arein or out of work

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Your role

Partner

Claimant

DWPINFORMATION ABOUT

UNIVERSAL CREDIT

GOV.UK

Claimant Leaflet

Videos

Partner Toolkit

Infographics

Useful links for stakeholders

• An introduction to Universal Credit video http://youtu.be/E7GUu7Xa7Nw

• Universal Credit pages on GOV.UK https://www.gov.uk/universal-credit

• A toolkit for Partners https://www.gov.uk/universal-credit-toolkit-for-partner-organisations

• Budgeting help and support

https://www.gov.uk/government/publications/budgeting-your-universal-credit-quick-guide

• Operating Guidance for Personal Budgeting Support & Alternative Payment Arrangementshttps://www.gov.uk/government/uploads/system/uploads/attachment_data/file/181399/personal-budgeting-support-cover-note.pdf

Useful links for stakeholders

• The Money Advice Service https://www.moneyadviceservice.org.uk/en

• A Money Advice Service Universal Credit video

https://www.moneyadviceservice.org.uk/en/videos/get-ready-universal-credit

• A quick guide for employers about Universal Credit and RTI

https://www.gov.uk/government/publications/universal-credit-works-for-employers-and-claimants-quick-guide

• HMRC and RTI http://www.hmrc.gov.uk/payerti/getting-started/paye-basics/rti.htm

• Eight Ways Universal Credit can help your business

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/307091/how-uc-can-help-your-business.pdf