DWP: Our Reform Story Spring 2013

1. DWP: Our Reform StorySpring 2013 ‘Inspiring Independence Through Work’ Mike Dann – Partnership Manager Mike.dann@dwp.gov.uk

2. 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. The Reform Story

3. 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. The Reform Story

4. Welfare that works Employment Offer UniversalCredit Support for Pensioners Employment Offer Housing Support Pensionsand Ageing Fraud and Error Appeals Reform Benefit Cap Disability Social Fund

5. Timeline Reform 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 Roll-out • October 2013 • PIP Reassessment Starts • Universal Credit -New Claims • Appeals Process change June 2013 Personal Independence Payment (PIP) National Roll-out for all new claims

6. 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.

7. 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.

8. How is Universal Credit different? Universal Credit Current System 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 working-age 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 Creditwill personalise conditions according to people’s capability and circumstances Universal Creditis a single monthly payment to each “household” (Though we will retain the ability to pay more frequently or to split payment in exceptional circs) Payments are paid to different adults in a household and for various periods

9. Universal Credit 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) Phase 1: starts 29 April 2013

10. Universal Credit Locations: LA Pilots Oldham Part of AGMA* DWP District: Greater Manchester East & West Wigan Part of AGMA* DWP District: Greater Manchester East & West Warrington Not a full member of AGMA* but has associate member status DWP District: Greater Manchester Central & Cheshire Tameside Part of AGMA* DWP District: Greater Manchester East & West Linked Jobcentres: Ashton-under-Lyne (Tameside) Oldham Warrington Wigan UC Service Centres: Bolton Glasgow *AGMA – Association of Greater Manchester Authorities

11. Universal Credit Local Authority role in Pathfinder • 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

12. Universal Credit Claimants fall into 6 broad segments:focus will be on “full conditionality” only Working enough (individual and household) Working could do more Claimants expected to take action to secure work, more work or better paid work – “full conditionality” Not working Too sick to work right now Too committed to work right now Too sick to work

13. 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 • We will change the role of DWP agents in telephony and Jobcentres Assisted Self Service 1 : Few Telephony support for online transactions High Street Access and support for online service provided - 3rd Parties or Jobcentres • Claimants will: • change how they currently interact with DWP • use thesupport of friends and family for online access • have provision to use online capability in 3rd party outlets and Jobcentres • self serve through telephony Claimants 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 1 : 1 • 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 • We and our delivery partners will help claimants self serve Face to face service provided in 3rd Party facilities, Jobcentres, home visits Telephony Service 2013 Time 2017

16. Localised Claimant Support Universal Credit

17. Supporting Vulnerable Customers 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. Universal Credit

18. Key Findings 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 Universal Credit

19. Coming Soon 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 Universal Credit

20. Direct Payment Direct Payment Project

21. Direct Payment Direct Payment Demonstration Project 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

22. 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”

23. 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.

24. 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 disability-related 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.

25. Benefit Cap - Local Activities Benefit Cap • 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 • 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

26. 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.

27. Appeals Reform 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

28. Welfare that worksThank you for listening Employment Offer UniversalCredit Support for Pensioners Employment Offer Housing Support Pensionsand Ageing Fraud and Error Appeals Reform Benefit Cap Disability Social Fund