universal credit & welfare reform implications for the princes trust and the young people we...
TRANSCRIPT
Universal Credit & Welfare Reform
Implications for The Prince’s Trust and the young people we
work with
"The Universal Credit will mean that work will pay for the first time, helping to lift people out of worklessness and the endless cycle of benefits. Whilst those people who need our help and support will know they will get it without question“
- Iain Duncan Smith, March 2012
• Too complex• Lack of incentive to work
Why?
Universal Credit – What?
It will combine all of the means tested support for working age adults and children into one benefit:
➔Income support➔Income-based jobseekers allowance➔Income-based employment and support
allowance➔Housing benefit➔Child tax credit➔Working tax credit
Universal
Credit
29 other benefits remain
Universal Credit – What?
Universal Credit - Who?
➔Unemployed➔In low paid work➔A lone parent➔Sick or disabled➔A carer➔Need help with living expenses,
including rent or mortgage
If you are...
...you will claim Universal Credit
Universal Credit – Who?
➔Aged 18 or over➔Resident in Great Britain➔Not in education➔Subject to ‘claimant commitment’➔Savings and capital below £16,000➔Income (or combined income) sufficiently
low
Conditions:
Universal Credit – How much?
➔ a standard allowance➔ an amount for each child➔ an amount for each disabled child➔ an amount for an ill or disabled adult➔ an amount if you are a carer➔ an amount for housing costs➔ an amount for childcare costs
The sum total of the above will give the maximum Universal Credit for an individual or a couple.
However, if the claimant(s) receive(s) any earnings and/or income or has any capital, the maximum amount is likely to be reduced.
Universal Credit – How?
➔ digital by design
➔ monthly assessment and payment
➔ direct payment of housing costs
➔ single payment per household
Universal Credit – Conditionality
Universal Credit – Conditionality
What have you done wrong
1st offence 2nd offence 3rd offence
Failed to apply for or take job
13 weeks 26 weeks 3 years
Failed to be available for work
4 weeks 13 weeks 13 weeks
Failed to undertake specific activity of attend JCP interview
Until comply and 1 wk after
Until comply and 2 wk after
Until comply and 4 wk after
Apr 2013 Apr 2014 Dec 2015 Oct 2017Sep 2013
Pilot
No new JSA, ESA or Income Support claims
Housing Benefit ‘phased out’
Can begin claims if in low-paid work, and no previous tax credits
No new claims for tax credits
No new housing benefit claims
All JSA, ESA and Income Support claims to UC
Leftovers transferred
Universal Credit – When?
Universal Credit – in summary
• There is a single payment which covers unemployment and low employment benefit, children, childcare, caring and housing costs.
• The number of hours worked does not affect entitlement
• As your income increases, your benefit reduces, but you keep 35p of every extra £1 you earn
• You do not need to report changes in your earnings, as there is real-time information from HMRC
• If you are in a couple, you will make a joint claim
• Claims are online and payments are monthly