Universal Credit Changes 2018-2019: Important Updates

1. Owen Stevens UNIVERSAL CREDIT – recent and upcoming changes Supported by City Bridge Trust, the funding arm of the City of London Corporation's charity, Bridge House Estates (1035628)

2. Budget 2018 – new announcements

3. Work Allowances up • The amount of UC some workers (parents and disabled workers) can keep before earnings reduce their entitlement • Currently worth £198/£409 per month • Increased by £1,000 per year • From April 2019

4. Extra two weeks of some benefits • Currently two weeks of HB are payable when you “migrate” to UC • Extended to income support, jobseekers allowance and employment and support allowance from 22 July 2020 • No extra money for children

5. Minimum income floor • Assumed earnings rather than actual earnings for self employed people, policy criticised for ignoring “bad months”, big expenses or downturn • Budget announced grace period for 12 months at the start of UC claim for all gainfully self-employed transitioning to UC • from July 2019 for those moved to universal credit under managed migration, and • from September 2020 for those moving to universal credit as a result of a change in circumstances

6. Debt deduction from UC down • Direct deductions from adults “standard allowance” in universal credit for rent, utility council tax arrears etc. • Reduced from 40% of standard allowance to 30% • From October 2019

7. UC advance payments – more time to pay your debt • Advanced payments available to claimants waiting for their first UC payment • Recovered over 16 not 12 months from Oct 2021

8. Budget 2018 –previously announced measures

9. Natural Migration • Currently a change of circumstances (eg new job, baby, move into a new area, lose job, get ill) triggers UC claim • Leaves many with “stable” lifestyles on legacy benefits • Those receiving SDP within past month (disabled, living alone and no-one paid CA) no longer be naturally migrated from 16/01/2019 • Those already naturally migrated will receive an extra amount of UC under draft regs

10. Two child limit, exemption extensions • Two child limit was being applied to kinship carers and to adopted children due to the ordering restriction • Ordering restriction removed for these cases from November 2018

11. Surplus earnings rule • ‘relevant threshold’ is planned to continue at the ‘nil UC threshold’ plus £2500 • Reduction to £300 delayed until April 2020

12. Transfer rent support into Pension Credit • Government has delayed rolling rent support into Pension Credit (rather than through HB) by three years • Now due by 2023 • This date has been chosen to align with planned fullimplementation of UC

13. Funding for supported housing • Announced August 2018 • Government has decided to retain funding for supported housing within the welfare system, rather than moving to a local funding model

14. Help paying rent restored to 18-21 year olds • 18-21 year olds previously not entitled to help unless exceptions apply • Help restored from December 2018 • Other restrictions like the bedroom tax, local housing allowance rules and the benefit cap remain

15. Managed migration • Will bring the remaining millions onto UC • Transition protection available so you “won’t lose out”. NO TP for natural migration • Trialled in 2019. Delayed until 2020, ending 2024? • Government will now trial with 10,000 awards before finalising plans

16. Budget 2018 - others • Parental bereavement leave and pay • Inclusion of Dupuytren’s contracture in Industrial Injuries Disablement

17. Various other changes/announcements

18. 2 child limit – restriction ends • Restriction on people with three or more children from claiming UC will come to an end following 31/01/2019 • Government had planned to apply UC two child limit retrospectively. However, this plan has been scrapped so universal credit still available for a third or subsequent child or qualifying young person who was born before 6 April 2017 • regulations allow Pension Credit to include similar amounts for children from 1 February 2019

19. PC for mixed age couples • From 15/05/2019 mixed-age couples, where one has reached state pension age and the other is of working age, are excluded from entitlement to pension credit. • if a member of a mixed-age couple has entitlement to PC or pension-age HB on 14/05/2019 then entitlement to those benefits as part of that couple continues. This continues to apply until there is no entitlement (as part of the couple) to either pension credit or pension-age housing benefit

20. Change to direct payments cycle • Were being paid over 13 four-weekly cycles throughout the year - means there is one four-week cycle where no APA money would be released placing tenants into debt • Plan to move social landlord payments to a monthly cycle in 2019

21. Sure Start Maternity Grant • Time for claiming this payment is extended from three to six months • With effect from October 2018

22. AP income • High Court found the amount of earned income in respect of an assessment period is to be based on, but will not necessarily be the same as, the amount of earned income actually received in that assessment period • Permission to appeal refused • Unclear whether SSWP will seek to renew application to Court of Appeal direct

23. CPAG handbooks www.shop.cpag.org.uk/

24. Get advice • Service is for advisers only, not for clients • cpag.org.uk/uclondonadvice • Email UC advice: • uc-london@cpag.org.uk • Telephone UC advice: • Wednesdays between 10 – 12 & 2 – 4pm • 020 7812 5221 • cpag.org.uk/content/welcome-ask-cpag-online

25. TBC • 26th April 2019 • 25th June 2019 • 12th September 2019 • 17th December 2019 • 9th April 2019