Universal Credit Social Landlords Presentation

1. Universal Credit Social LandlordsPresentation

2. Universal Credit Will eventually replace six main working age benefits with one simple payment Is paid monthly Can be paid to people in work or out of work How is it different? Claimants will be able to apply for their benefit online. Nearly 80 per cent of benefit claimants already use the internet, but telephone and other support services will be available if needed. Universal Credit will be paid monthly, in line with most people working in the UK and will include any support for housing costs claimants are entitled to. Universal Credit will require claimants to accept a Claimant Commitment 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 commitment will face penalties. Universal Credit Work Services Coaches will help claimants become more independent by supporting them in their worksearch activities. They will help claimant plan and focus their jobsearch as well as set them actions that give them best chance of finding work. Real Time Information (RTI) from HMRC records all earnings for PAYE employment and makes it accessible to the Universal Credit claims system Housing Benefit Income based Employment and Support Allowance Income based Jobseekers Allowance Universal Credit Working Tax Credits Child Tax Credit Income Support

3. Universal Credit - it’s all about work Universal Credit aims to reward work. No 16 hour rule and no limits on the number of hours someone can work. The Universal Credit 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 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 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 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

4. Delivering the policy - how Universal Credit is rolling out to eligible claimants Universal Credit rollout began on 29 April 2013 in Ashton-under-Lyne in Greater Manchester From 30 June 2014, we began taking new claims for Universal Credit from couples From 24 November 2014, we began to expand Universal Credit to families From February 2015, Universal Credit will roll out in all jobcentres and local authorities for new claims from single people who would otherwise have been eligible for Jobseeker’s Allowance, including those with existing Housing Benefit and Working Tax Credit claims. Our local JCP roll-outs include :- Feb –April 2015 Corby / Daventry / Harborough / Hinckley and Bosworth / Melton May-July 2015 Charnwood / Kettering December 15 – April 16 Oadby and Wigston / Blaby / Leicester City

5. Eligibility Claimant goes to GOV.UK to check latest position as Universal Credit gradually expands

6. Examples of eligibility for single people include :- Not be homeless, in supported or temporary accommodation nor a homeowner Aged between 18 years to 60 years and six months Not be receiving JSA, ESA, IS, IB, DLA, SDA or PIP Not have a caring responsibility Not be self employed, training or in education Not have savings in excess of £6000 Have lived in the UK for at least two years, and not been abroad for more than four weeks continuously during that time Not expect to receive take home pay of more than £330 in the next month

7. Seek Work Confirmation of starting work Make Claim for Universal Credit Organise Finances Provide personal Details Award notification and payment Submit Claim Interview Confirmation of interview Claimant Journey

8. Universal Credit Service Centres • Eight Service Centres • Bolton • Glasgow • Bangor • Middlesbrough • Makerfield • Dundee • Basildon • Grimsby • Virtual Telephony service that is delivered through all Service Centres • Specialist Housing Team in three Service Centres • LA secondees sited in one Service Centre

9. Universal credit rates Standard Allowance:- Single claimant aged under 25 £249.28 pcm Single claimant aged 25 or over £314.67 pcm Joint claimants both under 25 £391.29 pcm Joint claimants either is 25 + £493.95 pcm

10. Housing Cost Element Social sector tenants: Actual housing costs(excluding ineligible service charges and utility charges), less any under-occupancy deduction. Private sector tenants: Lower of actual costs or the Local Housing Allowance. Under Occupancy Deduction: 14% (one room under occupied) 25% (two or more rooms under occupied) Housing Cost contribution : Non dependants - £68.68pcm

11. Work Allowances Higher work allowance is appropriate where the claimant’s UC award contains no amount for the Housing Cost Element :- Single claimant No dependant children £111 Responsible for one or more children £734 Limited capability for work £647 Lower work allowance where the claimant’s UC award does contain an amount for the Housing Cost Element Single claimant No dependant children £111 Responsible for one or more children £263 Limited capability for work £192

12. James, Single Claimant under 25 Standard UC Allowance = £249pcm + rent £261pcm = £510pcm

13. James, Single Claimant under 25

14. James UC allowance = £510pcm Wages = £329pcm less work allowance = £111 £218pcm 65% of £218 = £142pcm This amount is deducted from his UC allowance £510 - £142 = New amount of UC £368pcm Total income of UC £368+ Wages £329= £697pcm

15. James, Single Claimant under 25

16. James UC allowance = £510pcm Wages = £548pcm less work allowance = £111 £437pcm 65% of £437 = £284pcm This amount is deducted from his UC allowance £510 - £284pcm = New amount of UC £226pcm Total income of UC £226+ Wages £548= £774pcm

17. An example claim +7 days 28/02 31/01 Regular Universal Credit Assessment Period 2nd Universal Credit Payment Calculation: 01/03 01/01 Date of Claim 1st Universal Credit Payment Calculation / notification to claimant: 01/02 1st Universal Credit Payment Received by Claimant: 07/02 2nd Universal Credit Payment Received by Claimant: 07/03

18. ‘About Universal Credit’ Overview

19. How to access ‘About Universal Credit’?

20. About Universal Credit Claimants and Agents should use About Universal Credit to support them in answering general enquiries.

21. Using About Universal Credit

22. Universal Credit Advances

23. Universal Credit Advance (new claim or CoC) • A Universal Credit Advance (new claim) or (change of circumstances) is an advance payment of a claimant’s future award of Universal credit which is recoverable from subsequent payments of benefit. The purpose of this is to: • provide emergency funds where a claimant doesn’t have enough money to support them through the period of 5 weeks until their first UC payment or • provide access to financial support where a claimant has a change in circumstances, such as the birth of a child that will increase their UC award. They will have to verify the change in circumstances in order to request a (change of circumstances) Award or • provide an interim payment to pay a claimant’s full award where their payment due date has been reached but their benefit cannot be paid for technical reasons • It is a Secretary of State decision to make a UC Advance and it is a discretionary decision that depends on the claimant’s individual circumstances. The discretionary nature of the Advance means that the Department can identify and support those most in need. Any decision will not carry the right of appeal but the claimant can ask for a reconsideration of the decision. • The claimant will need to contact the UC service centre to request an advance.

24. Universal Credit Advance (new claim or CoC) • The UC Advance (new claim) and (change of circumstances) will be available to claimant’s who are: • in receipt of or who have an underlying entitlement to Universal Credit based on the information they have provided • in financial need – there must be a serious risk to the health or safety of the claimant, partner or any child/young person they are responsible for. They must have no access to personal resources (including cash and capital). • can afford to repay the Advance over the next 6 months. • More than one advance can be made on a New Claim as long as the total amount doesn’t exceed the maximum. For a reported Change of Circumstances claimants can have more than one advance if it relates to a different change. • The maximum advance is: • 50% of the total indicative monthly award before the claimant’s payday or • 50% of the additional increase in the award if there is a change of circumstances that increases the award or • 100% where the pay day has passed • The recovery period will be 6 months starting from the first benefit payment except for those Advances made at the due date for payment of the UC, in which case recovery is made immediately from arrears. • In exceptional circumstances the repayment period can be deferred for 3 months. This is expected to be when recovery takes place not before the advance has been agreed.

25. 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.

26. 75% of people in employment are paid earnings monthly in arrears. Monthly payment of Universal Credit will: Prepare households for the reality of budgeting on a monthly income. Ease the transition into work. Make it easier for households to take advantage of cheaper tariffs for essential costs such as utility bills. The majority of Universal Credit claimants will continue to receive their benefit through mainstream, transactional bank or building society accounts. HM Treasury have announced that nine banks and building societies have made a voluntary commitment to improve basic bank accounts by the end of 2015. The Credit Union Expansion Project is investing £38 million into the modernisation and expansion of credit union services. In addition, plans are being developed so that Universal Credit can be paid into all types of Credit Union account by spring 2015. Financial Products

27. Who do we think may require Universal Support - delivered locally? Claimants with mental health issues People with Financial Inclusion or severe debt issues Those under the supervision of the Troubled Families Initiative Domestic Violence victims Geographically isolated people Non EEA citizens – including refugees • People with literacy/numeracy difficulties Multi Agency Public Protections Agreement (MAPPA) restricted claimants Homeless people People with addiction problems (drugs/alcohol/gambling) Entitled 16/17 year olds People with physical and/or sensory disabilities Prison leavers Care leavers People with English language limitations Claimants with learning difficulties

28. Alternative Payment Arrangements – Consideration Factors

29. 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.

30. How to Request a Managed Payment • Landlords can use the form available on GOV.UK – Universal Credit: Rent arrears form to apply for a managed payment of the housing element and recovery of arrears. • The information they will need to supply includes • Tenants name, address, and if known their date of birth and national insurance number • Current tenancy agreement including • Proof of the rent arrears which must include the amount of rent outstanding and the amount of rent due each calendar month • The landlord’s contact details – their name and address plus their bank/ building society account number and sort code for the payments. • Any reference number / transaction ID for that tenant • Once UC receives this information they will decide whether or not a managed payment is appropriate and inform both the landlord and claimant. • The claimant will also be offered personal budgeting support.

31. Housing Team MI / Performance The UC caseload at the end of June 2015 was 88,616. Approximately 30% of the UC caseload includes Housing Element The SC receive around 70 requests per day for an Alternative Payment Arrangement direct to the landlord The average amount of arrears already accrued by tenants before joining UC in the month of July was £1340.33 The highest amount of arrears already accrued by a tenant before joining UC in the month of July was £10580.30 Average days to process an Alternative Payment Arrangement from receipt of all evidence is 4.9 days Percentage paid in 1st available Assessment Period 95%

32. Escalation Route

33. Frequently Asked Questions • What budgeting support will be available and how do claimants access this? • Personal budgeting support will be offered to anyone claiming Universal Credit. Claimants needing help with monthly budgeting will be identified at their first Universal Credit appointment with the Jobcentre and will be referred for personal budgeting support • Many claimants will be able to help themselves through the online budgeting support services that are already available, and we will help people who have a clear need for more intensive support. • Money advice will be offered at a national and local level, and will include a mix of online, phone and face to face services. • Will managed payments be reviewed? • Yes, all managed payment will be subject to a review. The UC agent will decide the review period taking into account the claimant’s particular circumstances and level of rent arrears. At the review, they will decide if the claimant is now capable of managing the standard monthly payment. • When would a managed payment not be considered appropriate? • A managed payment is not considered appropriate if there is no financial risk to the claimant or their family and / or any rent arrears are being satisfactorily managed. • These arrangements will be kept under review as Universal Credit rolls out and may be subject to change. • The full guidance can be viewed on GOV.UK Universal Credit and Rented Housing

34. 2015 No. 46 SOCIAL SECURITY The Social Security (Information-sharing in relation to Welfare Services etc.) (Amendment) Regulations 2015 Made 21st January 2015- - - - Laid before Parliament 23rd January 2015 Coming into force 13th February 2015- -

36. Preparing your Tenants • What are you planning to do to support your tenants? • Preventing the need for alternative payment arrangements • Increasing personal responsibility • What are you going to do to prepare your organisation and staff in advance of UC? • Would you consider moving tenants to Direct Payment now?

37. Temporary Accommodation

38. Temporary Accommodation • The definition of homeless or living in temporary accommodation has been amended. For UC, any claimant does not have to be living on the streets to be treated as homeless. • When a claimant reports a change of address or contact details, the UC Agent will ask if they have moved into temporary accommodation and the name of the LA which placed them in Temporary Accommodation. • By temporary accommodation we mean:-. • housing arranged by a LA because they have decided that the tenant is homeless • in all cases the accommodation must be allocated by the LA or by a social housing provider through arrangements made with the LA. • The UC Agent will advise the claimant of the evidence which is required to progress their change in circumstances.

39. Temporary Accommodation – Evidence • Evidence required for Temporary Accommodation this will normally be a Licence to Occupy from the LA which must include: • name of all licensees on the Licence to Occupy • accommodation address • current rent and frequency (for example. monthly, weekly) • Landlord details (name, address) • signed and dated by the Landlord (this can be an electronic signature) • The evidence that the claimant provides must be in date when the claim for UC was made. • In the case of Temporary Accommodation the claimant is known as a licensee, not a tenant. • From the evidence received, the UC Agent will determine if the tenancy is for a Social or Private Rented Sector. • Regardless of whether the accommodation is Private or Social Rented Sector the UC entitlement will be calculated on the basis of Private Rented Sector accommodation.

40. Specified Accommodation

41. Legislation Change to Terminology 1/2 • From November 2014 the legislation has changed from using the terminology Supported Exempt Accommodation to Specified Accommodation. Supported Exempt Accommodation is now included within Specified Accommodation. • Specified Accommodation is when a claimant has been placed in order to meet a need for, and receive care, support or supervision. • The categories are:-: • Category 1 - Supported Exempt accommodation • For UC, supported exempt accommodation is a resettlement place or accommodation provided by a non-metropolitan county council (in England), housing association, registered charity or voluntary organisation. The organisation providing the accommodation or person acting on their behalf must provide the Claimant with care, support or supervision. • Category 2 - Accommodation that is provided by one of the following in which the claimant has been placed in order to meet an identifiable need for care, support or supervision and where he receives that care, support or supervision: • county council • housing association • registered charity • voluntary organisation

42. Legislation Change to Terminology 2/2 • Category 3 – Accommodation for victims of domestic violence where they are managed by: • local authorities • county councils • housing associations • registered charities • voluntary organisations • Category 4 - Hostel accommodation provided by local authorities where the following is provided: • care • support • supervision

43. Third Party Deductions

44. List of Third Party Deductions • There are currently eleven different types of Third Party Deductions (TPDs) , set out in the regulations: • Mortgage Interest arrears (where the lender is not part of the MID scheme) • Owner-occupier service charges arrears • Rent and/or service charges arrears • Gas arrears • Electricity arrears • Council Tax or Community Charges arrears • Court Fines (or Compensation Orders) • Water arrears • Child Support Maintenance (Old Scheme) • Integration loan arrears • Eligible loan arrears • TPDs can be requested by either the claimant or a Third Party.

45. Landlord Preparation • Know your tenants • Who might need support to pay their rent? • Do you know who is/isn’t unemployed and what benefits they may claim? • Does your housing management system allow you to store and retrieve tenant information easily? • Working with Staff • Who needs training? • Do you need to review existing staff structures? • Communications • Staff and Tenants - change in culture • Make every contact count • Rent collections/payments • Have tenants got up to date tenancy agreements ? • Do they know what is included in their rent (rent free weeks/service charges) ? • Flexible payments ? • Do you need to revise your process and increase resource this area?

46. Case study 1 Pete claims Universal Credit. He has severe learning difficulties and lives in supported accommodation. He is referred for alternative payment arrangements. However it transpires that Pete’s brother, Joe, acts as his appointee and fully manages his brother’s financial affairs. Joe has been looking after his brothers financial affairs for many years, ever since their parents passed away. He works part time and sees his brother regularly and is deemed capable of managing Pete’s Universal Credit. As a result an alternative payment arrangement is not considered appropriate in this case.

47. Gary is 22 and not in education, employment or training and claims Universal Credit. Following questioning, it comes to light that he has dyslexia, and struggles to read; he does not understand basic written documents and finds it difficult to manage his finances. He is referred for alternative payment arrangements and during the conversation with him and the local support agency, we discover that he also has other debts and although he does have a repayment plan in place he is not sticking to the terms and therefore risks further action if he continues to fail to pay. He is also in debt to family members and is paying small amounts in erratic ways and well below the agreed repayment plan. He continues to borrow more money from friends to cover debt payments. This is causing him a lot of anxiety. It is agreed to pay his rent direct to his landlord and he is referred for budgeting support services. His circumstances will be reviewed in six months time. Case study 2

48. Naveed claims Universal Credit following his discharge from a long spell in hospital, although his health condition is poor he is now in recovery. During his spell in hospital he accumulated some debt and his English is not very good. Following questioning he is considered for alternative payment arrangements. During the interview with Naveed and his health worker, it transpires that he considers himself financially capable, he explains that he has an active bank account with direct debit facilities, but would welcome some support to get the debts he has accumulated in order. Alternative payment arrangements are therefore not considered appropriate and he receives his Universal Credit via the standard monthly payment. He is referred for budgeting support services to help him set up a repayment plan to help him clear his debts. Case study 3

49. Lucy is 26 years old and makes a claim to Universal Credit and following ‘Personal Budgeting Support’ data gather questioning, it comes to light that she has a drug addiction problem and has no bank account plus a history of debt. She is currently a regular user of cannabis and is not receiving treatment (she says her local support service can only treat class A users at present), she wants treatment and says without it she cannot stop ‘using’. She is therefore considered for alternative payment arrangements as risks spending a large proportion of her Universal Credit income on drugs. A decision is made to pay her rent direct to her landlord and to pay her more frequently than monthly. She is referred for treatment and budgeting support services. Her circumstances will be reviewed in eight months time. Case study 4

50. Jane is a 29 year old woman, with a 1 year old son. Her husband was violent and, with the help of the police, she and her son fled to a refuge. She took with her only the clothes she and her son were wearing, with no other items and no money. She claims Universal Credit and with the help of the refuge support staff she requests alternative payment arrangements. She is now facing upfront expenses as she fled without any money / credit cards etc. A decision is made to pay her more frequently than monthly and to pay her housing costs direct to the refuge as well as a Universal Credit advance. Money advice is also put in place as well as the support she gets from the refuge to rebuild her life. It is decided that her circumstances will be reviewed once she leaves the refuge. After staying in the refuge for seven months, she has moved into her own tenancy, she continues to receive support and counselling from staff in the refuge. She now has an active bank account with direct debit facilities and feels capable of managing her own financial affairs. Alternative payment arrangements are no longer considered appropriate and she moves to the standard monthly payment. Case study 5