Universal Credit

1. 01 October 2012 Universal Credit NI Universal Credit revised go live - April 2014

2. Content Ongoing stakeholder engagement Welfare Reform Bill Update Universal Credit Customer Experience Customer Preparation & Personal Budgeting Support NI Universal Credit revised go live - April 2014

3. Welfare Reform Elements The main elements of the Welfare Reform Bill are; • Universal Credit • Personal Independence Payment • Localisation of Social Fund and council tax • Housing Benefit Reforms • The Benefit cap • Changes to Employment and Support Contributory Allowance • Conditionality and Sanctions including a claimant commitment • Fraud and error • Child maintenance NI Universal Credit revised go live - April 2014

4. Universal Credit The Welfare Reform Bill was introduced into the Northern Ireland Assembly on 01 October. Follow the progress of the Northern Ireland Assembly - Welfare Reform Bill NI Universal Credit revised go live - April 2014

5. Source of information for Universal Credit Home page of DSD Internet Site Trusted source of information on welfare reform and will include Universal Credit Dedicated section for Universal Credit Area for Universal Credit Stakeholders NI Universal Credit revised go live - April 2014

6. DSD Internet NI Universal Credit revised go live - April 2014

7. DSD Internet Universal Credit NI Universal Credit revised go live - April 2014

8. Universal Credit – Stakeholder section NI Universal Credit revised go live - April 2014

9. Universal Credit Overview NI Universal Credit revised go live - April 2014

10. Recap of Universal Credit A single allowance – which replaces income-related social security benefits, housing benefit and working and children’s tax credit A single allowance – which can be paid whether you are in or out of work Focused on household earnings – credit payment which reflect household circumstances (including additional elements for disability, caring duties, housing costs and children) Tapering of the allowances as earnings rise – Universal Credit withdrawn at a constant rate of 65p in the pound of net earnings NI Universal Credit revised go live - April 2014

11. What’s in / What’s out Replaced by Universal Credit Income based Jobseekers Allowance Income related Employment & Support Allowance Income Support Child Tax Credits Working Tax Credits Housing Benefit Social Fund (Budgeting loan elements) Not covered by Universal Credit Disability Living Allowance / Personal Independence Payment Contributory Benefits (although earnings rules aligned) Child Benefit Carers Allowance Social Fund Crisis Loans & Community Care Grants Housing Benefit (Rates) (Council Tax Benefit equivalent) Passported Benefits Claims made forhouseholds NI Universal Credit revised go live - April 2014

12. Universal Credit - Overview Employment Benefits Operation of the taper Increased income Customer Self serves online Universal Credit Finds work Advice and assistance Worklessness over generations Programme Automation Poverty Legislation Replacement of welfare benefits IS TCs ESA HB JSA NI Universal Credit revised go live - April 2014

13. NI Cross-Government Impacts Note: Click on the department reference above e.g. SSA and related services will be highlighted. Household makes claim to UC Wider labour market support Impact on support for particular groups Local Enterprise Partnerships Skills Funding Agency Ex-offenders Ex-service personnel FE providers Access to skills provision Supporting People Scheme Regional Growth Fund Drug-misusers Higher education access Service Families National Minimum Wage Higher Education Institutions Student finance Reserves Young People NEET Childcare Grant Working time Directive Prescriptions Under 18s Tax system Rural communities Student Loan’s Company Raising the participation age Healthy Start Grant Employment rights Families (including those with multiple problems) Children’s Centres Temporary Workers Dental treatment Right to work Child Poverty GP’s surgeries and health centres Sight tests and vouchers for glasses / CL Children Appointees claiming on behalf of others Childcare Regulatory Impacts Links with HMRC People from abroad Hospital Travel costs scheme People with mental health problems Wider NHS Volunteers Those in debt Victims of domestic violence Support for business Bus Service Operators Grant Community Transport Homeless people Adult social care recipients Telecomms and Broadband Broadband suppliers Digital Switchover Support Digital inclusion Online delivery Green Deal (introduced 2012) Additional support potentially available for UC recipients Warm Home Enablers to make UC implementation a success Estates Rationalisation Warm Front AME / DEL Legal Services Commission Legal aid Localism / RPA Work Programme Conditionality Leisure Services Concessionary travel Exportability Charities EMA replacement Schools Sponsored Facilities Free school meals Local Authorities Post Office Network Land / Border Implications Clothing Grants FE providers Statistics available School transport Court Fees Compensation Recovery Pupil premium Government as an employer Unsuccessful claim Learner Support Fund EJO requests Area-based Grants Wider community impacts Payments direct from benefit Claimant count Appeals Housing Payments? Housing policy Council Tax deduction Fines (Under consultation) Fuel Direct Child Maintenance Community cohesion The Tribunal Service UK Statistical Authority Social rented sector Energy Suppliers Childrens Commissioner DARD SSA CMED PSNI / MoD DOE DCAL DFP DHSSPS DoJ TREASURY LOCAL COUNCILS DETI DRD DSD (Core) NIHE DEL ELB / DE OFMDFM NI Universal Credit revised go live - April 2014

14. Universal Credit – recent developments Social Security Advisory Committee consulted on Universal Credit Work and Pensions Committee Inquiry on progress towards the implementation of Universal Credit Northern Ireland organisations responded to both Clear themes emerging NI Universal Credit revised go live - April 2014

15. DWP Universal Credit Launch Universal Credit will be launched on a phased basis Phase 1 - New claims to Job Seeker’s Allowance will transfer to Universal Credit on a geographical basis Phase 2 - New claims to other benefits to be replaced: • Income Support • Employment and Support Allowance • Tax Credits • Housing Benefit Phase 3 – Migration of existing claims to Universal Credit by October 2017 NI Universal Credit revised go live - April 2014

16. Passported Benefits • DSD assisting other Departments with the eligibility criteria for specific passported benefits. Analysis focused on impact • of eligibility criteria on a variety of family types and • potential delivery costs DSD are also working with other Departments to consider how passported benefits will be delivered to Universal Credit customers, for example, verification of entitlement. NI Universal Credit revised go live - April 2014

17. Passported Benefits Working with Department for Work and Pensions to identify new eligibility criteria for remaining elements of the regulated Social Fund for Universal Credit customers • Funeral Payments • Sure Start Maternity Grants • Cold Weather Payments NI Universal Credit revised go live - April 2014

18. Universal Credit • Customer Experience NI Universal Credit revised go live - April 2014

19. Universal Credit Customer Journey If I cannot claim online, I can telephone the Universal Credit Service Centre to make a claim , call into a front line service or seek help from a Customer Representative Group. I become unemployed, sick, or need to supplement my income. I can claim online. When my application is completed, my Job Focused Interview is arranged if applicable. Universal Credit may contact me to provide further evidence. I find out about Universal Credit I have made a successful claim to UC and continue my journey as Unemployed, Sick or Employed My circumstances, income or capital mean I am not entitled to UC or I have not provided supporting evidence requested and application has been disallowed – I may ask for a reconsideration , or appeal the decision. NI Universal Credit revised go live - April 2014

20. Face to Face interaction at the frontline • First Contact Team Non UC customers Business As Usual • Reasons for attending • Benefit Claim/Report change of circumstances • Pre-arranged appointment • Labour Market activity • Enquiries • Financial Assistance • Stage 1 - triage • Customer enters Jobs and Benefits Office/Social Security Office • Floorwalker interacts with queues to sift out straightforward referrals • First contact team at desk greets remaining customers and establishes reason for visit • Non Universal Credit customers are referred to Business As Usual • Customers eligible for UC move to stage 2 1 Customer makes claim/reports change online from home or elsewhere (not in office) 2 Customer makes a claim/reports change using own phone at home to UC Service Centre Unassisted Customer uses PC unaided to make a claim to UC or report CoC 3a Customer uses PC in JB0/SSO to make UC claim/report change 3 Some of these customers may not need to go through triage and may go directly to their Work Focussed Interview if they have already made a claim to UC. 3b • Assisted • One to many (1 agent helping a number of customers) or • One to one • Stage 2 • Agent explains options for making a claim to Universal Credit/reporting a change and what details will be needed. • If all details to hand, agent/customer agreemostappropriate method of making claim/report CoC. • If additional information required, customer can make appointment to return Agent inputs the claim/records the change online on behalf of the customer. (Process still in development.) 4 Outreach Service/Third sector (Process still in development) 5 NI Universal Credit revised go live - April 2014 Floorwalker available throughout Face to Face experience

21. Telephony support for Universal Credit customers Take claims to Universal Credit or changes of circumstances from customers who cannot use the online service. Support customers who need help to get online or to continue their claim online. Support customers who have questions if they encounter problems with making an online claim. NI Universal Credit revised go live - April 2014

22. DEL EMPLOYMENT SERVICEHelping people prepare for and move into work NICVA 1 October 2012

23. Employment Service & Universal Credit • DEL Employment Service has a frontline service of highly trained and skilled advisers who will assist clients as Universal Credit rolls-out in NI • Advisers will help people move into work, including self employment • The Employment Service aims to improve linkages between employment programmes and skills development to maximise opportunities for employment

24. Four UC Conditionality Groups Once a claim is made to UC the customer will be placed in one of the following groups: 1. Full Conditionality – current JSA 2. Work Preparation – current ESA WRAG 3. Keeping in Touch with the Labour Market – current Lone Parents 4. No Conditionality

25. 1. Full Conditionality This group will have the following requirements: • Work Availability - immediately available for work, exceptions apply e.g. those who have to make childcare arrangements • Work Preparation - specific action e.g. CV, skills assessment • Work-Focused Interview – periodic interviews with Advisers in additions to a fortnightly review • Personalised Conditionality Requirements – permitted customers can place limits on types of work in certain circumstances e.g. those with a good work history, health condition.

26. 2. Work Preparation • This group are: • People with a disability or have a current health condition which means they have limited capability for work at the current time • They will be required to: • Attend Work Focused Interviews and take reasonable steps to prepare for work

27. 3. Keeping in Touch with the Labour Market This group are: • Lone parents or lead carers in a couple with a child over one but under five • They will be required to: • Attend periodic interviews to discuss their plans for returning to the labour market

28. 4. No Conditionality This group: • Have a disability or serious health condition which prevents them working and preparing for work; and/or • Are a lone parent or lead carer in a couple with a child under one; and/or • Have intensive and regular caring responsibilities; and/or • Earning above the relevant threshold

29. Work Focused Interview • DEL Employment Service Adviser • Develop tailored Claimant Commitment • Identify/agree activities to increase employment prospects • Identify/agree training work placements, and/or specialised support with the aim of moving into work; • Consider realistic current/future work opportunities

30. What Support is available? • Skilled ES Adviser service • Steps 2 Success • All age tailored adult return-to-work provision for Full Conditionality and Work Preparation groups, voluntary access for existing ESA and IB claimants • Client Support Fund • Youth Employment Scheme • 2 to 8 week Work Experience Scheme • Skills Audit/Assessment /Development Programme • Enhanced Employer Subsidy • Disablement Advisory Service • Access to Work (NI) • Job Introduction Scheme • Specialist Disability Support including Occupational Psychology Services • Workable NI • Future support for ‘in work’ group

31. Customer Preparation and Personal Budgeting Support NI Universal Credit revised go live - April 2014

32. What changes will Universal Credit Customers face? Customers REQUIREMENT FOR A PERSONAL BUDGETING STRATEGY IS DRIVEN BY THE FINANCIAL CHANGES Financial Changes Direct Payment of Housing Costs New Ways to Claim Single Household Payment Monthly Payment Work Focus NI Universal Credit revised go live - April 2014

33. Personal Budgeting Overview Budgeting Support Tailored Support Stimulate Market Based on Customer need Financial Products Inherent budgeting capability Prepare Customers Alternative Payment Type Prepare Customers Customers managing their money, paying their bills, in full, on time More Frequent Split Payment Housing Costs to Landlord Encourage Take Up and use Increase Capability Risk based approach Move to Support Volumes minimised Regularly reviewed NI Universal Credit revised go live - April 2014

34. Personal Budgeting - Scope Within the Universal Credit Programme we have established 3 related sets of activities, which need to be in place for Universal Credit Go-Live Budgeting Support - aimed at developing suitable support packages for categories of customers who, even with access to suitable products, will need a level of support, via an appropriate change, that may vary in frequency (e.g. one-off regular or continuous in nature). Alternative Payment & Deferrals - aimed at developing rules, procedures and guidance for categories of customers who will not be able to succeed with the Universal Credit financial defaults; either in the long term or for a temporary period of adjustment. Financial Products - aimed at enabling the development of a range of appropriate products that will enable customers to select the right one (s) for them to succeed with the financial changes and opportunities that Universal Credit brings. NI Universal Credit revised go live - April 2014

35. Preparation & support for the ‘unable’ Some households will need Support to budget e.g. • Guidance and online tools • Telephone Advice • Face-to-Face advice • Practical help with banking and payment products In certain circumstances we can make other payment arrangements e.g. • A more frequent payment • A split payment within the household NI Universal Credit revised go live - April 2014

36. We are considering options ... For today: What is the best means of taking this work forward – focus group (if so who and how many), correspondence etc? Going forward: What support will customers need to manage this change? Who should deliver (and has the capability to provide) the support? Which customers will need support? We would appreciate the benefit of your expertise in this area and would be grateful for any comments or input - Universal.credit@dsdni.gov.uk NI Universal Credit revised go live - April 2014

37. Next Steps Feedback from External Advice Organisations to inform approach Develop detailed criteria for identifying those in need of support, and if alternative payment arrangement appropriate Develop Northern Ireland Universal Credit Customer Preparation and Budgeting Support Strategy NI Universal Credit revised go live - April 2014

38. Summary Good progress is being made to deliver Universal Credit Building a 21st Century benefits system – with flexibility and continuous improvement Designing a service based on customer journeys involving them and staff in the design Aware of the challenges ahead Work with our partners and stakeholders to design and deliver a successful service for our customers NI Universal Credit revised go live - April 2014

39. Contact us Universal.credit@dsdni.gov.uk NI Universal Credit revised go live - April 2014