DWP Update – spring 2012.
An update for external stakeholders
May 2012
Version 0.63– 3 May 2012
Topics to cover.
• Welfare Reform Act
• Service Delivery
• Employment support
• Benefits
• Pensions
• Local topics
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Department for Work and Pensions
Welfare Reform Act
Main points
Timeline
Department for Work and Pensions
Welfare Reform Act - overview
• Introduces the most fundamental reforms to the social security system for 60
years.
• Aims for a simpler, fairer benefits system & to ensure work pays
• Universal Credit
• Personal Independence Payment
• ESA time-limiting
• Benefit cap
• Fraud & error penalties
• IIDB amendments
• Social Fund changes
• Housing Benefit changes
4
Department for Work and Pensions
Timeline - 2012
• April
ESA C WRAG time-limiting
• May
Lone Parent IS entitlement changes (new & repeat claims)
Advance notice re benefit cap
Benefit fraud administrative penalty
• June
Housing Benefit demonstration projects
• August
Lone Parent IS entitlement changes (existing claims)
• October
Industrial Injuries Disablement Benefit updating
Revised JSA sanctions regime
 December
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Revised ESA sanctions regime (date tbc)
Department for Work and Pensions
Timeline - 2013
• April
Housing Benefit/LHA linked to CPI
Benefit cap
Revised appeals process
Social Fund reform
Universal Credit pathfinder
Personal Independence Payment pathfinder
Increased benefit fraud sanctions
• June
PIP (new claims)
• October
Reassessment of DLA claims begins
Universal Credit (new claims)
Entitlement to work requirement for benefit
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Department for Work and Pensions
Timeline - 2014
• April
Universal Credit (start transfer of existing claims)
Incapacity Benefit reassessment complete
Civil penalty for negligence re change of circs
• October
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Modified Pension Credit
Department for Work and Pensions
Social Justice Strategy
Department for Work and Pensions
The Social Justice Strategy
• The Social Justice Strategy launched on 13 March sets out the
Government’s commitment to:
•
support the most disadvantaged individuals and families to turn their
lives around – and outline progress under this Government
•
drive innovation in delivery: social investment, payment by results, open
commissioning, local autonomy
•
support local leaders in taking forward the principles set out in the strategy
•
set a direction for the Parliament
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Department for Work and Pensions
Social Justice Strategy: Principles
Social justice is about giving individuals and families facing multiple
disadvantages the support and tools they need to turn their lives around
A new set of principles that inform the approach:
1. A focus on prevention and early intervention
2. Where problems do arise, a focus on recovery as the primary aim
3. Promoting work as the most sustainable route out of poverty
4. Encouraging innovation in the commissioning, funding and delivery of
services
5. Recognising the role of local Government, the voluntary and community
sector and grassroots delivery in offering the most targeted support
6. Empowering people and communities to take a greater responsibility for the
services they use
7. Ensuring that interventions provide a fair deal for the taxpayer
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Department for Work and Pensions
Service Delivery
DWP organisation
Offices
Telephony
Digital services
Department for Work and Pensions
DWP Organisation
• Jobcentre Plus and PDCS no longer have ‘Agency’ status. DWP has
implemented a simpler corporate structure.
• New single Operations directorate:
Terry Moran
Chief Operating Officer
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Ruth Owen
Work Services
Jason Feeney
Pensions
Hilary Reynolds
Benefits
John Oliver
Operational Excellence
Myrtle Lloyd
Network Services
Alan Cave
Contracted Services
Department for Work and Pensions
Telephony
•
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National numbers for:
Crisis loans - 0800 032 7952
Social Fund - 0845 603 6967
Maternity Allowance - 0845 608 8610
•
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Performance update:
48.8 million calls answered (April 2011 - March 2012)
Over 87% of all calls answered
Over 74% resolved first time.
• Continue to seek improvements in performance
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Department for Work and Pensions
Digital services
• JSA Online has been updated, making it easier for people to find and claim
on Directgov
• Digital champions are supporting the digital agenda in each Jobcentre,
making them a great point of contact for all external stakeholders.
• Working closely with digital partners such as UK Online on events, training
and access to the internet
• Aim is that digital becomes main channel to claim benefit and search for
jobs. Leading to Universal Credit being digital by default
• Over 1.6 million people have claimed JSA online (26% of all JSA claims were
made online in December 2011)
• Over 1.6million visits to the online Benefit Adviser Service to November 2011
• The job search tool continues to be the most popular part of Directgov with
an average of over 3million visits per week in January 2012
• And of course the DWP website holds lots of information on a whole host of
topics for advisers, intermediaries, partners and providers.
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Department for Work and Pensions
Employment support
Jobcentre Plus support
Get Britain Working measures
Work Programme
Youth Contract
Support for lone parents
Support for families with multiple problems
Specialist disability support
Department for Work and Pensions
Jobcentre Plus support
• Greater focus on diagnosing customers’ individual needs
• More flexibility and responsibility for Jobcentre advisers
• Increased flexibility for local managers
• Raised expectations of customer commitment to finding work
• Extending range of digital services
• Clear focus on getting customers off benefits and into jobs
• Option for advisers to mandate suitable customers to
Mandatory Work Activity
• New sanctions regime to be introduced
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Department for Work and Pensions
Jobcentre Plus support – victims of domestic violence
• Easing of JSA rules for domestic violence victims from April 23
• Excused labour market conditionality for 4 weeks – can be extended to 13
• Aim is to give individual time to find new accommodation and schools and to
get legal advice
• Eligible if inform us that:
• the incident of actual or threatened domestic violence occurred within the
previous 26 weeks; and
• it meets the definition of domestic violence; and
• they are not living at the same address as the abuser; and
• they have not previously had a period of domestic violence easement within
the last 12 months
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Department for Work and Pensions
Get Britain Working measures
A menu of flexible support options to encourage:
• more sharing of skills and experience through Work Clubs
• volunteering as a way of developing work skills through Work
Together
• self-employment as a route off benefits through the New Enterprise
Allowance and via Enterprise Clubs offering community based and locally
led support for unemployed people
• greater insight into the world of work through voluntary work
experience
• pre-employment training and work placements through sector-based
work academies
• Partnership between voluntary sector, colleges, employers and
Government
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Department for Work and Pensions
Support for young unemployed
 Early access to the Work Programme for 18 year olds who claimed JSA
when aged 16-17
 Voluntary work experience available to 16-17 year old JSA claimants
 Increased adviser support for 16-17 year olds on JSA
 Signposting advice available to 16-17 year olds who are Not in Education,
Employment or Training (NEET)
 Work Clubs extended to 16-24 year olds
 Additional funding available to help 16-17 year olds develop job seeking
skills
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Department for Work and Pensions
Youth Contract
• Contract with obligations for us and for claimants.
• offer a voluntary work experience or sector based work academy
place for every unemployed 18-24 year old who wants one (after
they have been on JSA for 3 months) before they enter the Work
Programme.
• extra Jobcentre Plus support for all 18-24 year olds
• wage incentives to make it easier for employers to take on young
people
• additional funding to support the growth of 16-24 year old
apprenticeships
• a new programme for persistently NEET 16 and 17 year olds to
get them learning, on an apprenticeship or in a job with training.
• expand the current MWA programme.
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Department for Work and Pensions
Lone Parents
• Extending jobseeking support to more lone parents.
• New and repeat claims to Income Support
• From 21 May lone parents with a youngest child aged 5 or older will no
longer be eligible to claim solely on the grounds of being a lone parent.
– For existing Income Support claimants the changes will be phased in
stages;
– From May lone parents with a youngest child aged 6, or who turns 6;
– From August lone parents with a youngest child aged 5, or who turns 5.
• In line with earlier changes some lone parents will retain their entitlement
to Income support
• Informed affected customers by letter in March.
• Work Focused support also available for those on Income
Support.
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Department for Work and Pensions
Work Programme eligibility - JSA
Customer Group
Time of Referral
Basis for referral
Jobseekers Allowance
(JSA) claimants aged 25+
From 12 months
Mandatory
JSA claimants aged 18-24
From 9 months
Mandatory
JSA either NEET, Repeat
claimant or ex-Incapacity
Benefit
From 3 months
Mandatory
JSA claimants who are
seriously disadvantaged by
one or more factors
From 3 months
Voluntary
JSA former prisoners
Immediately on release
from prison
Mandatory (from March
2012)
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Department for Work and Pensions
Work Programme eligibility – other benefit groups
Customer Group
Time of Referral
Basis for referral
All Employment and
Support Allowance (ESA)
claimants
At any time
Voluntary
New claimants ESA (income When expected to be fit for
related) Work Related
work in 3 months, or
Activity Group
optional at any time if their
youngest child is under five
years old or they are a full
time carer
Mandatory
Pension Credit claimants
From 12 months after claim
or from day 1 if have a
health condition
Voluntary
Income Support claimants
At any time (England only)
Voluntary
Incapacity Benefit claimants
At any time (England only)
Voluntary
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Department for Work and Pensions
Support for families with multiple problems
• Available in England only – paid for by European Social Fund.
• Aimed at families with history of worklessness
• Voluntary for participants who will be identified by local authorities
• 12 month programme of support delivered by contracted providers.
• Whole family approach – but payment to provider for outcomes
• Closely aligned with Work Programme
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Department for Work and Pensions
Specialist Disability Support
• The independent report by Liz Sayce, Getting in, staying in and getting on,
was published last June.
• Proposed that resources for supporting disabled people into employment
should be focused on disabled people themselves rather than on specific
institutions. Government welcomed that.
• Government announced its response and plans regarding next steps on 7
March.
• Key principles:
– The Government wants to give disabled people the opportunity to realise
their aspirations and to get into and progress in work.
– Spending on specialist disability employment programmes will be
protected over this Spending Review.
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Department for Work and Pensions
Benefits
Benefit uprating
Crisis Loan changes
Future Social Fund reform
Benefit Cap
ESA & WCA
Personal Independence Payment
Universal Credit
Fraud & error
Simple Payments
IIDB
Department for Work and Pensions
Benefit rates
• New benefit rates effective from w/c 9 April.
•
Details of new benefit rates currently being issued to individuals.
•
Most benefits rise by 5.2% in line with Consumer Prices Index.
•
The standard minimum guarantee in Pension Credit will increase by
3.9%, a proposed increase of £5.35 to a new single rate of £142.70 per
week, or an increase of £8.20 to a new rate of £217.90 for couples.
•
The Savings Credit threshold will rise to £111.10 per week or £177.20 per
week for couples.
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Department for Work and Pensions
Crisis Loan changes
The changes that are being introduced from 9th April 2012 are;
• For single non householders, the maximum rate of a crisis loan will be 30%
of the appropriate benefit personal allowance rate. This rate will not apply to
those customers who are householders or who are homeless as in these
circumstances the maximum award of a crisis loan will still be set at 60% of
the appropriate benefit personal allowance.
• Crisis Loans given to alleviate hardship whilst customers are waiting for an
award of Child Tax Credits to be paid will be treated as an alignment
payment and will no longer count towards the limit of 3 crisis loans in 12
months
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Department for Work and Pensions
Social Fund reform
• Existing Social Fund been in place over 20 years – not kept pace with wider
welfare reform.
• From April 2013:
• Community Care Grants and Crisis Loans for general living expenses will be
abolished. Funding will be transferred to local authorities in England and to
the Devolved Administrations in Scotland and Wales to establish alternative
provision.
• Crisis Loans for alignment to benefit and Interim Payments of benefit will be
replaced by Short Term Advances of benefit and will be administered by
DWP from April 2013
• From October 2013:
• Budgeting Loans will be replaced by Budgeting Advances and be paid as
part of Universal Credit.
• Regulated Social Fund (Funeral Payments, Sure Start Maternity Grants and
Cold Weather Payments) will continue with Universal Credit as a qualifying
benefit.
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Department for Work and Pensions
Benefit cap
• Limits benefit payments to a household to no more than average household
earnings – currently equivalent to a gross salary of £35,000.
• Cap excludes one-off payments and non-cash benefits.
• Exemptions for households including recipients of Disability Living
Allowance, Attendance Allowance or Industrial Injuries Disability Benefit.
• War widows/widowers and those in ESA Support Group also exempt.
• Those entitled to Working Tax Credit exempt.
• Effective from April 2013 – already contacting individual claimants in those
households likely to be affected offering support to find work.
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Department for Work and Pensions
ESA changes
• 365 day limit for contribution-based ESA in the work related activity group.
Support Group not affected.
• Makes ESA more consistent with JSA which has 6 month limit on
contribution-based entitlement.
• Comes into effect from 30 April 2012.
• About 60% of those claiming ESA end claim within a year.
• Estimate 60% of those affected by time-limiting will be eligible for incomerelated ESA – rest can claim on credits-only basis to maintain NI record and
access Work Programme.
• Estimate 90% of those affected by change to ESA Youth will be able to claim
income-related ESA.
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Department for Work and Pensions
Work Capability Assessment improvements
• DWP is committed to continuously improving the Work Capability
Assessment (WCA) to ensure that it is fair and effective
• First independent Harrington review reported in November 2010. All of his
recommendations have now been implemented.
• Second review reported November 2011. Recommendations include:
 Monitoring the impact of the year one recommendations and identifying
further opportunities for improvement
 Improving descriptors for mental health and other fluctuating conditions
 Regular monitoring of DWP and Atos staff performance to ensure
consistency in assessments and decisions.
 Currently trialling use of text messages to remind people to return forms.
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Department for Work and Pensions
DLA reform – Personal Independence Payment overview
• Replaces DLA with a new benefit to be introduced for eligible working age
people (16-64) called the Personal Independence Payment
• Retains the key features of DLA - non means tested and non taxable
• More objective assessment process, including a face to face consultation
with a health professional for most claimants
• Public consultation regarding new assessment criteria runs to end April 2012
• Consultation on regulations and detailed design runs to end June 2012
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Department for Work and Pensions
DLA reform – Personal Independence Payment timetable
Personal Independence Payment is being introduced in stages:
• April 2013: Initially take a few thousand new claims in areas including
Merseyside, North West England, Cumbria, Cheshire and North East
England
– During this period new claimants in all other parts of the country will
continue to claim Disability Living Allowance as now
• June 2013: We plan to take new claims from all claimants in all parts of the
country
• Oct 2013: Begin to reassess about 30,000 mostly randomly selected
existing DLA cases
• Jan 2014: Full national reassessment likely to begin
• March 2016: All current DLA claimants of working age will have been
contacted about claiming Personal Independence Payment
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Department for Work and Pensions
Universal Credit - overview
• Will replace a range of working age benefits with a single payment that
provides both in-work and out-of-work support
• Designed to ensure that work will always pay
• Expect Universal Credit to begin in 2013, with existing claims transferred to
the new system by the end of 2017
• Tougher sanctions regime will be introduced ahead of Universal Credit
• Aspects of the Social Fund will be incorporated within Universal Credit while
others will be delivered by Local Authorities in England and devolved
administrations in Scotland and Wales
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Department for Work and Pensions
Universal Credit - timetable
• Preparatory tests this year.
• Expect Universal Credit to begin in 2013.
• 2014-15 – begin moving those existing claimants with most to gain from
being on UC.
• 2016 & 2017 – transfer existing claims to UC. Migration based on local
authority boundary.
• Tougher sanctions regime will be introduced ahead of Universal Credit
• Aspects of the Social Fund will be incorporated within Universal Credit while
others will be delivered by Local Authorities in England and devolved
administrations in Scotland and Wales
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Department for Work and Pensions
Fraud & Error Strategy
• Joint DWP & HMRC strategy. Involves local authorities too.
It sets out plans to cut fraud by £1.4 billion by 2015 through:
• Significant improvements in our data-matching capability, drawing on the
best products available in the private sector, to PREVENT fraud
• Rigorously assessing current claims to CORRECT errors where they
exist and refer suspicious cases for fraud investigation. We expect to
cleanse a million claims a year
• A single, integrated fraud investigation service across DWP, HMRC and
local authorities from 2013 to DETECT fraud. Will include a mobile
regional taskforce
• Tougher powers to deal with welfare cheats to PUNISH and DETER
Proposal to move away from cautions, introduce stronger sanctions, plus a
call for increased court sentences following prosecutions
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Department for Work and Pensions
Pensions
Changes to pension age
Auto-enrolment
Department for Work and Pensions
Local topics
Department for Work and Pensions
Lewisham Local initiatives.
• Lewisham Apprenticeships- Close working with Local Authority
• Flexible Fund Projects Lewisham Hospital and Community Training and Education
Project Brockley
• Outreach at Deptford Lounge and Baseline Centre
• Gangs Strategy – Working through the safer Lewisham Partnership
• Involvement in Lewisham Jobs Fair and Neet Days
• Outreach in Childrens Centres
• Sector Based Academies- Working with Lewisham Colege
• Skills Conditionality
• Use of Jobcentreplus space by external providers
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Department for Work and Pensions
Contact Details Chris Hobrough-07776244614- 02084652704
Martin Taylor 02081724065
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Department for Work and Pensions