DWP: Our Reform Story
Spring 2013
‘Inspiring Independence Through Work’
Mike Dann – Partnership Manager
Mike.dann@dwp.gov.uk
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Department for Work and Pensions
The Reform Story
• The Department for Work and Pension is reforming. Our aim is to
help people lift themselves out of poverty and stay out of poverty,
through work, saving and support.
• The Government is working to put the nation’s finances on a more
sustainable footing, reducing the country’s debt. This does mean
making difficult decisions, on tax and spending, but we will ensure
that fairness is at the heart of those decisions so that all those most
in need are protected.
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Department for Work and Pensions
The Reform Story
• Despite considerable welfare spending, more working age adults live in poverty
than ever before
•
“A system that was originally designed to support the poorest in
society is now trapping them in the very condition it was supposed to
alleviate.” Iain Duncan Smith, Secretary of State for Work and Pensions.
• Our money needs to be targeted more effectively to those who need it most and
Our services need to change
• The Welfare Reform Act introduces the most fundamental reforms to the social
security system for 60 years.
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Department for Work and Pensions
Employment Offer
Welfare that works
Universal
Credit
Support for
Pensioners
Housing
Support
Employment
Offer
Pensions
and Ageing
Fraud and
Error
Benefit Cap
Appeals Reform
Disability
Social Fund
4
Department for Work and Pensions
Reform Timeline
Timeline
April 2013
•Social Fund Reform
•Benefit Cap Roll-out Begins
•Universal Credit Pathfinder
April 2014
Universal Credit –
Transfer existing
claims
August 2013
Benefit Cap National Rollout
October 2013
June 2013
•PIP Reassessment Starts
Personal
Independence
Payment (PIP)
National Roll-out for all
new claims
•Universal Credit -New Claims
•Appeals Process change
Universal Credit Update
Universal Credit
• Universal Credit (UC) replaces six main benefits, sweeping away
the complexities of the current system into a simpler, single monthly
payment for people in work or out of work.
• UC is formed around a new ‘claimant contract’ 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 contract will face tough but fair penalties.
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Department for Work and Pensions
Universal Credit Update
Universal Credit
• Universal Credit (UC) will be a self service experience;
with claimants applying for and accessing their benefit on-line, on
GOV.UK.
• As claimants earn more money;
financial support will be withdrawn at a slower rate under UC than is
the case with the current system. UC will be paid monthly, in arrears,
in line with the vast majority of people working in the UK.
• A single payment to a household;
rather than an individual will enable a household to clearly see the
effect of their decisions on their overall income, encouraging
personal responsibility for budgeting.
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Department for Work and Pensions
How is Universal Credit different?
Current System
Universal Credit
The welfare system has more
than 30 benefits each with
their own rules and criteria
Universal Credit provides a new single
system means-tested support for workingage people who are in or out of work
Work incentives can be
very low, benefits are reduced
to take account of earnings but
different benefits have different
rules
Universal Credit will ensure that work
pays. Financial support will be reduced at a
consistent and predictable rate (taper) and
people will generally keep a higher
proportion of their benefit
Conditionality: some benefit
claimants are capable of
working but have no
obligations to look for work
Universal Credit will personalise conditions
according to people’s capability and
circumstances
Payments are paid to different
adults in a household and for
various periods
Universal Credit is a single monthly
payment to each “household” (Though we
will retain the ability to pay more frequently
or to split payment in exceptional circs)
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Department for Work and Pensions
Universal Credit
Phase 1:
starts 29 April 2013
Phase 1 will deliver and test the core service with new claims from
single unemployed claimants (no children, can have housing costs rent only, other eligibility criteria applies)
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Department for Work and Pensions
Locations: LA Pilots
Wigan
Universal Credit
Oldham
Part of AGMA*
Part of AGMA*
DWP District: Greater
Manchester East & West
DWP District: Greater
Manchester East & West
Warrington
Tameside
Not a full member of AGMA*
but has associate member
status
Part of AGMA*
DWP District: Greater
Manchester East & West
DWP District: Greater
Manchester Central &
Cheshire
Linked Jobcentres:
UC Service Centres:
Bolton
Glasgow
Ashton-under-Lyne (Tameside)
Oldham
Warrington
Wigan
*AGMA – Association of Greater Manchester Authorities
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Department for Work and Pensions
Local Authority role in Pathfinder
Universal Credit
•
• All
Local Authorities in Pathfinder have agreed to provide
– Face to face services in line with UC National Service Framework
•
Face to face services include:
– Claimant support
• Working closely with DWP to get people into work and building on
‘worklessness’ initiatives Non standard services
• Support for vulnerable claimants and those with complex needs
• Personal Budgeting Support
• Support and help to get claimants on-line and keep on-line
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Department for Work and Pensions
Claimants fall into 6 broad segments:
focus will be on “full conditionality” only
Universal Credit
Working enough (individual and household)
Working could do more
Not working
Claimants expected to take action to
secure work, more work or better
paid work – “full conditionality”
Too sick to work right now
Too committed to work right now
Too sick to work
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Department for Work and Pensions
Digital by default – self-service
Claimants of DWP will become increasingly self-sufficient
and prepared for the labour market, enabled through
delivery of self service on every channel
• We and our delivery partners will
provide a High Street environment for
claimants to access online
• We will provide telephony support to
claimants completing online
transactions
Assisted Self Service
1 : Few
• We will change the role of DWP agents
in telephony and Jobcentres
Telephony support for online transactions
High Street Access and support for online service provided
- 3rd Parties or Jobcentres
Claimants will:
Claimants
• change how they currently interact with
DWP
• use the support of friends and family
for online access
Self Service
0 : Many
Online Self Service
Telephony Self Service
Access to online Self Service provided by friends/family,
High street 3rd Parties or Jobcentres
Supported Service
Face to face service provided in
Telephony Service
2013
1 : 1
3rd
Party facilities, Jobcentres, home visits
Time
• have provision to use online capability
in 3rd party outlets and Jobcentres
• self serve through telephony
• We and our delivery partners will give
claimants specialist support
• We and our delivery partners will
assist self service and support
claimants in other channels
2017
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• We and our delivery partners will help
claimants selffor
serve
Department
Work and Pensions
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Department for Work and Pensions
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Department for Work and Pensions
Universal Credit
Localised Claimant Support
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Department for Work and Pensions
Supporting Vulnerable Customers
Universal Credit
• We commissioned a Task Force to:
– identify the requirements of our most vulnerable claimants; and
– determine whether UC has sufficiently addressed the full scope of
potential needs to ensure the right claimant experience and outcomes
• ‘Vulnerable claimants’ are those who have the most challenging
requirements for UC and the most difficulty in dealing with the demands of
our processes at the time when they need to access the service.
Vulnerability can be temporary, recurring or more long term.
• Our approach is based on being able to better understand specific needs
and in creating services to meet those needs, to encourage greater
independence amongst claimants.
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Department for Work and Pensions
Key Findings
Universal Credit
Claimants likely to need most help with the standard journey include:
• Mental health issues
• Learning difficulties
• Drug or alcohol addiction
• Homelessness
A significant proportion of the existing claimants will continue to require:
• Language support / translation services
• Support for claimants with sensory disability requirements i.e. Induction
Loops and Text phones
• Housing support for victims of domestic violence
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Department for Work and Pensions
Coming Soon
Universal Credit
Universal Credit Partner Toolkit :
Will include the following sections
• Making a claim
• Claimant Journey
• Quick guides [will include subjects like - online applications, ,family
entitlements, budgeting etc]
• Frequently asked questions
• Press articles/releases
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Department for Work and Pensions
Direct Payment
Direct Payment
Project
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Department for Work and Pensions
Direct Payment Demonstration Project
Direct Payment
Purpose:
• Test the impact of various trigger points and
safeguards on social landlords
• Test safeguards for different groups of people,
e.g. trigger points for making payments to
landlords, and test budgeting tools for
claimants
• Evaluate claimant communication strategy
and test landlords’ strategies for maintaining
financial viability
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Department for Work and Pensions
Direct Payment
Early Findings
Published on 17 December which showed:
• 6,220 social tenants were paid housing benefit directly
• Rent collection rates stood at 92%
• Across the areas levels of payments collected varied from 88% to
97%
• 316 tenants have been switchback to payments to their landlords
either because they had reached the trigger point or early intention
Lord Freud
“Direct payments of benefits will help people to step into the
workplace.However we have always been clear that exemptions must
be in place alongside the right support for those who need it and the
projects are showing us and the housing community the steps that
must be taken”
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Department for Work and Pensions
Benefit Cap Update
Benefit Cap
•
From 15 April 2013 a cap will be introduced on the total amount of benefit
that working-age claimants can receive. The level of the benefit cap will be
set with reference to average earnings (after tax and National Insurance) for
working families - £500 a week for couples (with or without children) and
single parent households, and £350 a week for single adults.
•
We are implementing the cap from April 2013, starting in four local
authorities in London - Bromley, Croydon, Enfield and Haringey.We plan
to implement the Benefit Cap in all other Local Authorities during the
summer.
•
The benefit cap will apply to the combined income from out-of-work
benefits; and other benefits such as Housing Benefit, Child Tax Credit, Child
Benefit and Carer’s Allowance.
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Department for Work and Pensions
Benefit Cap Update
Benefit Cap
•
The following households will be exempt from the benefit cap:
- those entitled to Working Tax Credit.
- all households which include someone receiving a disabilityrelated benefit: (Disability Living Allowance / Attendance
Allowance / Personal Independence Payment / Industrial Injuries
Benefit / support component of Employment & Support
Allowance).
- War widows and widowers and those in receipt of War Disablement
Pension
•
There will be a ‘grace period’ whereby the benefit cap will not be
applied for 39 weeks to those who have been continuously in work for
the previous 12 months and have become unemployed.
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Department for Work and Pensions
Benefit Cap
Benefit Cap - Local Activities
• Joint working with JCP /Council on identification
• Cross working with agencies and housing associations
• Currently 114 Identified families,
• National JCP approach , letters, jcp interviews and home visits
•
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There is an online calculator available for claimants to use at
www.gov.uk and a benefit cap helpline: 0845 6057064 and textphone:
0845 6088551 (8am-6pm Monday-Friday
Department for Work and Pensions
Inspiring Independence through Work
Employment Offer
Significant changes have been made to the welfare-to-work programmes
available to Jobcentre Plus customers,
• Universal Jobmatch, an online job posting and matching service available
to all jobseekers, not just those claiming benefits.
• Youth Contract, including the Wage Incentive, a £1 billion programme to get
more young people into meaningful employment, training or gain work
experience.
• Work Programme, offering greater freedom to tailor support to the needs of
each claimant.
• Work Choice, a specialist disability employment programme which was
launched in October 2010. Work Choice provides tailored support to help
disabled people who face the most complex barriers to employment find, and
stay in, work.
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Department for Work and Pensions
Appeals Reform
• The Welfare Reform Act 2012 includes the introduction of changes to the
appeals process to ensure more disputes against DWP decisions are
resolved without being referred to HMCTS. The Appeals Reform Projects
consist of the following key elements:
– Mandatory reconsideration of decisions prior to appeal
– Direct lodgement of appeals with HMCTS
– Time limits for DWP to return appeal responses to HMCTS
• DWP intends to introduce mandatory reconsideration and direct lodgement
on the following dates:
– April 2013 for Universal Credit and Personal Independence Payment
– October 2013 for all other DWP-administered benefits and child
maintenance cases
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Department for Work and Pensions
Employment Offer
Welfare that works
Universal
Credit
Thank you for listening
Support for
Pensioners
Housing
Support
Employment
Offer
Pensions
and Ageing
Fraud and
Error
Benefit Cap
Appeals Reform
Disability
Social Fund
31
Department for Work and Pensions