GMCC Universal Credit
November 2014
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Universal Credit – overview
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Universal Credit aims to ensure claimants are better off in work than on benefits. It
promotes personal responsibility to actively seek work and increase earnings, while
continuing to provide support for those who need it most.
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It’s designed to make work pay. As claimants earn more money, financial support will be
withdrawn at a slower rate than is the case under the current system. Real Time
information (RTI) link with HMRC will facilitate this
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Claimants will be able to apply for their benefits online. 80 per cent of benefit
claimants already use the internet. Telephone and other support services available if
needed.
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A single payment will be made to a household rather than an individual. This will
include housing costs. It will be paid monthly, in arrears.
Universal Credit requires claimants to accept a ‘Claimant Commitment’. This sets out
what is expected in return for receiving assistance, taking into account personal
circumstances and capability to earn.
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Local support will be available to help claimants where appropriate. This will be provided
through DWP and local authority delivery partnerships.
Universal Credit - it’s all about work
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Universal Credit aims to reward work. No 16 hour rule and no limits on the number
of hours someone can work. UC payment only reduces gradually as their take home
pay increases so claimants won’t lose all their benefits at once if they are on a low
income.
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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.
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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.
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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.
Making work pay
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Universal Credit - one year on
The first year of Universal Credit has seen major progress in delivering the
main components of the new benefit across the country including:
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Universal Credit is available in 44 Jobcentres across Britain
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thousands of claimants benefiting from an easier single benefit
payment sticking with them as they move into work – rather than the
current mixture of 6 in and out of work benefits
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the Claimant Commitment is now in place in all British jobcentres
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26,300 members of staff have been trained to provide job coaching,
expert help and advice to encourage and motivate claimants in their
search for work
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over 600,000 Claimant Commitments have been signed – resetting the
relationship between benefit claimants and Jobcentre Plus help
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the roll-out of digital jobcentres will be complete by Autumn – placing
wi-fi and computers in all jobcentres
Live service – experience so far
• The vast majority of claims (90%) from Universal Credit claimants have
been made online.
• Over three-quarters (78%) of Universal Credit claimants also feel confident
about their ability to budget with monthly payments
• Almost two-thirds of Universal Credit claimants think that the new system
provides a better financial incentive to work
• Universal Credit claimants are doing more to get into work than jobseekers
claiming under the current system – 27.1 hrs / week versus 13.6 hours /week
• RTI is working for claimants and employers - majority of employers are
submitting PAYE data in real time ; RTI data is used in approximately 30% of
UC payment calculations
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Progression and future roll out
The expansion of the full Universal Credit benefit to the rest of
the north west of England will start later this month.
• Jobcentres in the North West of England have started taking Universal
Credit claims from later in June, with more coming online each week until the
whole region is covered.
• In total 90 Jobcentres – 1 in 8 across Britain – will offer the Universal Credit
service once the North West expansion is complete
• During the summer Universal Credit was also made available for new claims
from couples in a number of jobcentres that already deliver the full Universal
Credit, expanding to all the current live sites over time.
• We will extend to families later in the year
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Universal Credit claimant journey
I get information or
advice about how to
claim Universal
Credit.
I receive a
telephone call
inviting me to attend
an interview in the
jobcentre.
I make my claim
online at GOV.UK. If
I need help, I can
telephone the
Universal Credit
helpline for
assistance.
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I attend my interview at
the jobcentre, taking
along any paperwork
that has been asked for.
I sign my Claimant
Commitment, which
records the activities I’ve
agreed to do in return for
receiving Universal
Credit.
I receive a text
message to remind
me about my
interview at the
jobcentre.
I receive my
Universal Credit
decision letter. It
tells me when I will
receive my
payments, and
confirms what I
need to do in return
for getting Universal
Credit.
I begin looking for
work. I can get
advice on
jobseeking,
budgeting and going
online from my work
coach.
I telephone the
helpline if there is a
change in my
circumstances,
including if I start
work. My Claimant
Commitment is
reviewed and may
be changed to take
into account my new
situation.
I regularly visit the
jobcentre where my
work coach and I
discuss the actions
we’ve agreed in my
Work Plan.
If a change in my
circumstances
means my Universal
Credit payments
change, I receive a
letter confirming the
new details.
Local Authority role in UC
All Local Authorities in Live Service locations
have agreed to provide
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– Face to face services in line with UC Local Support Service
Framework as described under local flexibilities
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Face to face services include:
– Claimant support
• Working closely with DWP to get people into work
– Non standard services
• Support for vulnerable claimants and those with complex needs
• Personal Budgeting Support – process agreed with Pathfinder LAs
– Support for on-line access
• Help get claimants on-line and keep on-line
• Support for UC Service Centre
– Complex housing cases
– Counter fraud activity
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Local Support Service Framework –
Key role for Partners
– Provides a structure for the delivery of local support services to individuals
needing additional help with the new demands of Universal Credit.
– The framework sets out how we plan to trial and test elements of the
framework such as:
– access to Digital support
– triage (where are looking to co-locate services in at least one location in each
DWP District during 2014/15)
– Development of personal budgeting support initiatives (helping claimants
to obtain bank accounts, debt advice and Alternative Payment Arrangements)
– Partnership development
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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 gov.uk 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.
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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.
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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
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Working with landlords
• We're working closely with social landlords such as councils and housing
associations to help them pro-actively support tenants to manage the change
to UC:
• As part of our learning from our Pathfinder, we have already:
– improved the process of payments direct to landlords, identifying a
single point of contact within the Department to swiftly address any
issues that landlords may have.
– increased support to help people adjust to budgeting. This includes extra
support to help people manage their finances better.
• Going forward - a budgeting action plan is being included with each
person’s Claimant Commitment to make sure they are ready to manage their
monthly payment at the very start of their Universal Credit journey.
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Useful links for stakeholders
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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
The Claimant Commitment
https://www.gov.uk/universal-credit-toolkit-for-partner-organisations#the-claimantcommitment
A Personal Planner to help claimants prepare for Universal Credit
http://ucpp.dwp.gov.uk/universal-credit-preparation/
A pictorial representation explaining Better off in Work
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/301408/ho
w-uc-tops-up-earnings-to-make-work-pay.pdf
Budgeting help and support
https://www.gov.uk/government/publications/budgeting-your-universal-credit-quick-guide
Operating Guidance for Personal Budgeting Support & Alternative Payment
Arrangements
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/181399/pe
rsonal-budgeting-support-cover-note.pdf
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/181400/pe
rsonal-budgeting-support-guidance.pdf
The Local Support Services Framework
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/181395/uc
-local-service-support-framework.pdf
Useful links for stakeholders
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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
Making work pay comparison graph explaining how Universal Credit compares to
the current system when claimants increase their hours
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/301411/ho
w-uc-helps-to-make-work-pay.pdf
A quick guide for employers about Universal Credit and RTI
https://www.gov.uk/government/publications/universal-credit-works-for-employers-andclaimants-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/ho
w-uc-can-help-your-business.pdf