DWP Update – spring 2012 .

1. DWPUpdate – spring 2012. An update for external stakeholdersMay 2012 Version 0.63– 3 May 2012

2. Topics to cover. • Welfare Reform Act • Service Delivery • Employment support • Benefits • Pensions • Local topics

3. Welfare Reform ActMain pointsTimeline

4. 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 Welfare Reform Act - overview

5. 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 Revised ESA sanctions regime (date tbc) Timeline - 2012

6. 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 Timeline - 2013

7. April Universal Credit (start transfer of existing claims) Incapacity Benefit reassessment complete Civil penalty for negligence re change of circs October Modified Pension Credit Timeline - 2014

8. Social Justice Strategy

9. 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 directionfor the Parliament

10. 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

11. Service DeliveryDWP organisationOfficesTelephony Digital services

12. Jobcentre Plus and PDCS no longer have ‘Agency’ status. DWP has implemented a simpler corporate structure. New single Operations directorate: DWP Organisation

13. National numbers for: Crisis loans - 0800 032 7952 Social Fund - 0845 603 6967 Maternity Allowance - 0845 608 8610 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 Telephony

14. 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. Digital services

15. Employment supportJobcentre Plus supportGet Britain Working measuresWork ProgrammeYouth ContractSupport for lone parentsSupport for families with multiple problemsSpecialist disability support

16. 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 toMandatory Work Activity New sanctions regime to be introduced Jobcentre Plus support

17. 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 Jobcentre Plus support – victims of domestic violence

18. 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 NewEnterprise Allowance and viaEnterprise 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 Get Britain Working measures

19. 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 Support for young unemployed

20. 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. Youth Contract

21. 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. Lone Parents

22. Work Programme eligibility - JSA

23. Work Programme eligibility – other benefit groups

24. 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 Support for families with multiple problems

25. 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. Specialist Disability Support

26. Benefits Benefit upratingCrisis Loan changesFuture Social Fund reformBenefit CapESA & WCAPersonal Independence PaymentUniversal Credit Fraud & errorSimple PaymentsIIDB

27. 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. Benefit rates

28. 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

29. 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.

30. 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.

31. 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 income-related 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. ESA changes

32. 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. Work Capability Assessment improvements

33. 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

34. 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

35. 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 Universal Credit - overview

36. 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 Universal Credit - timetable

37. 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 CORRECTerrors 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 DETERProposal to move away from cautions, introduce stronger sanctions, plus a call for increased court sentences following prosecutions Fraud & Error Strategy

38. PensionsChanges to pension ageAuto-enrolment

39. Local topics

40. 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 Lewisham Local initiatives.

41. Contact Details Chris Hobrough-07776244614- 02084652704Martin Taylor 02081724065