Universal Credit Update

David Magor OBE IRRV (Hons)

Chief Executive

Institute of Revenues Rating and Valuation

Contents

• Pathfinder Implementation

• Universal Credit Local Support Services: Background and current projects

• Direct Payment Demonstration Projects

• Personal Budgeting Support

• Caseload Migration

Pathfinder Implementation

Universal Credit implementation – key dates

APRIL 2013

From OCT 2013

During 2014

2017

Single Pathfinder begins

National introduction of Universal Credit starts – gradual introduction and testing of further scope and functionality, and phasing out of

claims for existing benefits

Expansion - new claims from people in work and moving current claimants to Universal

Credit in phased approach

Universal Credit roll-out complete

Pathfinder locations

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

Oldham Part of AGMA* DWP District: Greater Manchester East & West

*AGMA – Association of Greater Manchester Authorities

Linked Jobcentres: Ashton-under-Lyne (Tameside) Oldham Warrington Wigan

UC Service Centres: Bolton Glasgow

Phase 1 – service delivery started on the 29th April, 2013

Summary Phase 1 will deliver and test the core service with new claims from single

unemployed claimants

Ministerial Change Delivery Group

In March 2013 MCDG agreed that lessons learned from CMG and their successful Pathfinder should be applied to UC, which includes:

•  Limiting the number of claims to help stabilise new system

•  Micro management of every claim through the UC process

•  Track and manage all outputs to claimants to ensure they are correct

•  Go-live in a single location (agreed as Ashton under Lyne Jobcentre)

•  Expand to other Pathfinder locations following period of ‘live proving’

•  Expansion criteria

•  Providing criteria met UC Pathfinder will expand to Wigan in early July

•  Oldham and Warrington in late July

Configuring the start - breakout of volumes by site

Location Monthly Inflow Changes of circs –

Children

Changes of circs -

Partnering

Changes of Circs-

Employment

Ashton 320 19 91 63

Warrington 400 25 11 78

Wigan 450 29 125 88

Oldham 650 42 181 127

Volumes are for 6 month period April to October, include both adding and losing children, partners and employment. Volumes derived from analytics from past current volumes and forecasts.

Expansion criteria from single Jobcentre to other 3 Pathfinder locations

•  All channels are working effectively

•  Claimants are able to self serve (although to a limited extent)

•  New organisational structure works effectively

•  New business processes can be operated by agents

•  Payments calculated by UC Core System are accurate

•  System produced notifications are accurate

•  IT systems and interfaces work according to specification

•  Claimants can report earnings through RTi (?)

•  Claimant material and staff products are fit for purpose

•  Minimal disruption to Business As Usual during transition to UC

•  Local delivery partners are fully engaged in UC

Claimant Scope

Putative new JSA claimant

§  Has earnings below £270 pm if under 25 years of age

§  Has earnings below £330 pm if over 25 years of age

§  Is not in receipt of JSA (IR/C) §  Has not left JSA within the previous 2

weeks §  Is not entitled to ESA/IB/IS, i.e.:

§  Is not sick (is fit for work) §  Is not a carer

…in simple household in pathfinder area without other benefit entitlements

§  Is single §  Has no children §  Is not a home owner §  Does not reside outside of a UC

designated area §  Is not in receipt of HB §  Has no outstanding appeals/

reconsiderations relating to a legacy benefit

§  Is not already awaiting a decision on a legacy benefit claim

§  Is not under 18 years old (16-17) §  Is not within a year of pension age §  Is a resident Great Britain national §  Is not in temporary accommodation or

hospital §  Does not have capital greater than

£6,000 (and less than £16,000) §  Is not self-employed* §  Is not in education (including training) §  Is not pregnant §  Is able to represent themselves (PAB/

CAB) §  Is not in receipt of DLA/PIP,

Bereavement Allowance, Carer’s Allowance)

§  Does not met special conditions (i.e. In Prison, Long Term hospital, in voluntary work, Jury service)

§  Has a NINO (adult registration) §  Has a bank account

…without complexities

*Limiting volume is 1,500 pm new claims. To be developed into a gateway

Process Steps: Orientation

Basic Identity Assurance and Access

Eligibility Gateway

Data Capture and Claim Submission

Indicative award/ responsibilities/next steps

Appointment setting

Job search

Non Identity Evidence submission

ID verification

Claimant Commitment signed

Decision notification

First calculation and Payment

Online

Claimant Experience – Make a claim Telephony Face to Face Automated

YES

NO

YES

DIVERT TO ONLINE

N/A N/A

ONLY EXCEPTIONAL CIRCS N/A

YES

YES YES YES

YES DIVERT TO ONLINE ONLY EXCEPTIONAL CIRCS YES

YES YES ONLY EXCEPTIONAL CIRCS YES

NO YES ONLY EXCEPTIONAL CIRCS YES

YES NO ASSISTED YES BUT NOT INTEGRATED

BY POST - INBOUND AGENT CAPTURES ONLINE

AGENT CAPTURES ONLINE

AGENT CAPTURES ONLINE

SYSTEM GENERATED

WHERE NO CHANGE OF CIRCS

BY POST - OUTBOUND

YES

YES

Labour Market Support YES N/A

* LIMITED FACE TO FACE

* To be confirmed

Process Steps: Monitor Claimant Commitment

Job Search support

Check employer scheme is on RTI

Check specifics on RTI earnings

Get a monthly statement

Subsequent calculation and payment

Exit/termination

Online  

Claimant Experience – Maintain a claim Telephony   Face  to  Face   Automated  

YES   ASSISTED  

YES  

YES  BUT  NOT  INTEGRATED  

YES   AGENT  PHONES  HMRC  

AGENT  USES  ONLINE  SERVICE  

YES   AGENT  USES  ONLINE  SERVICE  

YES  

YES  

AGENT  USES  ONLINE  SERVICE  

AGENT  USES  ONLINE  SERVICE  

AGENT  USES  TACTICAL  IT  

AGENT  USES  ONLINE  SERVICE  

AGENT  MANUALLY  CALCULATES  AND  OVERRIDES  

PAYMENT  DETAILS    

BPM  PROMPTS  AGENT  TO  OVERRIDE  

YES  

YES  

Enqu

iries

Start/End work

Start/end self employment

Report (non RTI) earnings

Cha

nge

of c

ircs

Change of bank account

Other change of circs

YES  

YES  

AGENT  USES  ONLINE  SERVICE  

AGENT  USES  ONLINE  SERVICE  

YES  

UC claimants fall into 6 broad segments – Day 1 focus will be on “full conditionality” only

Working enough (individual and household)

Working could do more

Not working

Too sick to work right now

Too committed to work right now

Too sick to work

Claimants expected to take action to secure work, more work or better paid work – “full conditionality”

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 as described under

local flexibilities

•  Face to face services include: –  Claimant support

-  Working closely with DWP to get people into work -  Build on ‘worklessness’ initiatives in LA Pilots (Oxford & Rushcliffe)

–  Non standard services -  Support for vulnerable claimants and those with complex needs -  Personal Budgeting Support – process agreed with Pathfinder LAs

–  Support for on-line access -  Help get claimants on-line and keep on-line

Local Authority role in Pathfinder

•  LA Data Share –  Data for LCTS –  Pathfinder LAs designing manual processes –  Automation scheduled for October 2013

•  Support for UC Service Centre –  Manual processes for UC Stop Notices in Pathfinder –  Setting up secure mail boxes (utilising Housing Delivery Division links) –  Support for complex housing cases

•  UC LA Implementation Guide –  Developed in conjunction with HDD –  Best practices & Lessons learned for LAs

Universal Credit Local Support Services: Background and current projects

This presentation will cover…

•  Background and context for the Local Support Services Framework

•  Who will require UC LSS services

•  What services will be provided –  Existing local level support services –  Newly required local level support services

•  How services will be provided –  The Delivery Partnerships Approach –  The Partnering construct

•  Ongoing work –  How work on the LSS is being progressed –  Timelines and next steps

Background and context for the LSS

•  Follows Ministerial request for DWP to ensure that claimants with complex needs will not be prevented from accessing and using welfare services (as per the legislation).

•  Based on extensive research into claimant needs and services required to meet those needs, including day visits to over 120 LAs and extensive engagement with the Housing and Voluntary sectors.

•  Written by a task force which includes LA Association reps from England, Scotland and Wales, and co-signed by Sir Merrick Cockell

•  Published on the 11th February on DWPs website – Google “UC local support services framework”

Who will require LSS services

•  Claimants with mental health issues

•  Claimants with learning difficulties

•  People with literacy/numeracy difficulties

•  People with addiction problems (drugs/alcohol/gambling)

•  Homeless people

•  People with English language limitations

•  Prison leavers

•  Entitled 16/17 year olds

•  Non EEA citizens – including refugees

•  People with physical and/or sensory disabilities

•  Domestic Violence victims

•  People with Financial Inclusion or severe debt issues

•  Care leavers

•  Multi Agency Public Protections Agreement (MAPPA) restricted claimants

•  Geographically isolated people

•  Those under the supervision of the Troubled Families Initiative

What services will be provided – Existing

•  Intermediary support

•  Home visits

•  Evidence verification (by LAs and RSLs as well as DWP)

•  Processing exceptions to normal payment rules (e.g. LHA payments to landlords)

•  Support around housing choices (and homelessness prevention)

•  Urgent support for resolving an issue with a claim

•  Triage and Orientation

• Online Access

•  Financial Inclusion and Budgeting/debt advice

What services will be provided – New

How services will be provided: The Delivery Partnerships Approach

Under the Delivery Partnerships Approach existing local planning forums, usually LA led, will be developed into Local Delivery Groups for UC local claimant support services.

These must include DWP and Local Authority representatives but should also include other service providers. They should have the flexibility to plan support services and engage different suppliers according to local circumstances.

Local Delivery Groups: What are we hoping to achieve?

Local Authority

Community Reps

Welfare Rights

DWP District/Partnership

Managers

Digital Charities

Adult Social Care

LA Services (e.g. libraries)

Ex-offender Services

Disability charities

Adult Education

Social Landlords Homelessness

orgs

The real purpose of the Partnerships approach is joined up “single claimant journey” for claimants with complex needs, from benefits dependency to independence and, where appropriate, work

DWP Partner

DWP Partner

DWP Partner

DWP Partner

LA Partner

LA Partner

LA Partner

LA Partner

Delivery Partnership Agreements

Overarching Partnership Agreement

DWP Districts & LAs DWP & LA Associations

The Partnering Construct

•  A common Overarching Partnering Agreement (OPA), signed at the corporate level between the DWP and LA representative bodies (LGA, WLGA and COSLA) setting out a number of general terms, obligations and expectations that apply to all DWP and LA delivery partnerships; and

•  A set of local level Delivery Partnerships Agreements (DPA), signed between the DWP and LAs locally, will give details of specific service providers locally.

Progressing the LSS Work: Committology map

LSS VCS Reference Group

Contingency Delivery Options

Working Group

LSS Finance sub-group (includes LAA and Individual LA reps)

LSS Implementation sub-group

(includes LAA reps)

Volumetric Working Group

LA Fin & Comm Working Group

LSS LA Reference Group

LSS Operations Reference Group LSS Taskforce

(includes LA Reps.)

Under construction

The LSS Funding sub-group

•  Working to deliver the Funding Instrument to support LSS

•  Chaired by the DWP but with reps from LA Associations and DWP opps

•  Hope to have some key details about how funding will work available by end of May.

•  Supported by the Volumetrics Working Group which is – Developing a cost-to-serve model for the costs of LSS nationally – Developing a Resource Allocation model for guiding the distribution of resources between

LAs and Districts.

Implementing the LSS: DWP District Managers and LAs have been asked to…

1)  Identify appropriate planning forums already in place within their respective local area, review membership and ensure both DWP and LA representation.

2)  Ensure that these forums can fulfil the requirements of UC delivery groups, by making sure that they have the capability and requisite skills to plan and arrange delivery of local support services for UC claimants. They should address any gaps

3)  Think about who will deliver which specific support services to claimants with a view to preparing a delivery partnership agreement (once more is known about funding).

LSS Implementation – Indicative Timings

•  Publication of details about the Finance Instrument

•  Overarching Partnership Agreement delivered

•  DPA template published

•  Local Delivery Groups are able to assign local service providers and commission services via DPAs at the local level

•  Publication of the Mark II Framework document

Next Steps

LSSF Key Milestones

June-2013May-2013 October-2013August-2013 September-2013July-2013

Local Delivery Groups formed and ready to deliver services.

Framework Mark 2 agreed by senior officals / senior LA reps and signed off by Ministers

Funding agreed by senior officals / senior LA reps and signed off by Ministers

OPA agreed by senior officals / senior LA reps and signed off by Ministers

Framework Mark 2 published

DPA template agreed by senior officals / LA reps and Ministers

DPAs signed between LAs/ Local DWP/Service providers

Activation of DPAs

What can LAs do to engage?

•  Examine local planning forums already in place in respect of their ability to plan for a holistic, single claimant journey under UC.

•  Invite DWP District Managers/Partnerships Managers to attend appropriate welfare reform planning events, especially to forums that could, eventually, act as Local Delivery Groups.

•  Some LAs have already started to map out relevant services, examining both levels of provision and gaps.

•  Building alliances with potential delivery Partners and starting wider conversations.

•  Engage with representative bodies included within the Task Force (e.g. the LGA) over how things are progressing.

Direct Payment Demonstration Projects

•  Six local authorities and housing associations nationwide with a total of around 12,000 working age claimants (representative cross section)

•  Projects started in June 2012 and will run until June 2013

•  Applying a mix of approaches with a mix of tenants to provide valuable learning about what interventions best help tenants who go into arrears – e.g. different trigger levels, support strategies and a range of payment methods.

Edinburgh  

Wakefield  

Oxford  

Shropshire  

Torfaen            Southwark  

Direct Payment Demonstration Projects

What has been learnt to date on DPDP…from the data

•  Early findings from the project have shown that from 6,220 tenants placed onto direct payment:

• Rent collection rates stood at 92% overall (current sector rate 95–

96%) • Across the areas rent collection rates varied from 88% to 97% •  316 (5%) tenants have been switched back to payments to their

landlords as a result of reaching the arrears trigger point or due to early intervention

Emerging findings:

•  A large number of switchbacks have been due to partial payment of rent or persistent underpayment rather then full non-payment of rent

What has been learnt to date… claimant communication

•  Early communication with claimants is essential

•  Tenants prefer personal contact (face to face or telephone) with their landlords

•  Use of broadest range of contact channels achieves the most effective results

•  Tenants need to understand their responsibility both from the outset and when their personal circumstances change

•  Non-engagement/non-responding by claimants has affected the numbers available in the Projects to be placed onto direct payment.

What has been learnt to date… supporting claimants

•  Participation in the Projects, which includes providing tenant support, has been challenging for landlords - but they recognise the need to change how they operate

•  Bank accounts – more tenants have accounts than expected although not always active accounts

•  Not all claimants have taken up the offer of support or engaged

•  Many require ongoing support - often difficult to immediately identify underlying issues

•  Tenants want to feel in control of their income - no one single solution

What has been learnt to date…alternative payment arrangements as a step towards direct payments

•  Accurate assessment of people’s support needs and when to grant an alternative payment arrangement is critical

•  The arrears trigger for an alternative payment arrangement needs to be set at a level to balance the risk for claimant and landlord

•  Data sharing arrangements between UC and landlords are essential •  Clarity needed about the role of landlords in supporting claimants to return to direct

payment as soon as possible

•  Landlords will need to review the way they operate to improve: rent collection; tenant data

gather and processes to deliver support

What has been influenced to date as a result of our learning… Universal Credit design

•  The Direct Payment Demonstration projects have provided us with much valuable learning about how best to design that aspect of Universal Credit so that it has the least impact on both tenants and landlords. Without the projects we would have been far less aware of the issues and how best to tackle them.

•  To date, learning from the projects has had a direct influence on the design for Universal Credit in the areas of:

• Personal Budgeting Support;

• Alternative Payment Process;

• Rent arrears trigger

Universal Credit Personal Budgeting Support

REQUIREMENT FOR A

PERSONAL BUDGETING STRATEGY IS DRIVEN BY

THESE CHANGES

Context – Claimant preparation for the single monthly payment

Housing costs direct to tenant

Single payment to household

Monthly Payment

We want to help people to be able to manage their own finances successfully, whether they are in or out of work

Alternative Payment

Arrangements

Money advice

Budgeting Accounts

Claimants managing their

money

Personal Budgeting Support – Overview

Money advice

•  Money advice will include: – Online budgeting tools for claimants who can help themselves - such as those offered by

Money Advice Service and Citizens Advice. – Advice services offered by external organisations for those who need more support with,

for example, getting a bank account or doing a monthly budget plan.

•  Advice will be delivered through online, telephone and face-to-face channels by expert providers at a national and local level.

•  A personal planner will be available on gov.uk soon to help claimants understand and prepare for the financial changes arising from the introduction of Universal Credit. More about this later

•  We are also trialing the new concept of a Budgeting Club for new and existing claimants. This will provide face to face practical help to claimants, initially in a group setting and subsequently on a one to one basis if needed.

Budgeting Club

•  Trial went live on 28th Jan 2013 in Hammersmith Jobcentre

• Began with JSA new claims surname A-K

• Using the UC Personal Planner to inform required help

• Referrals onto budgeting support via CAB or Local Authority

• Now being extended to caseload claimants

• Over 50 claimants referred to date

• Attendance rate of around 48%

• Next steps – Extend to L-Z new claims and caseload – Evaluate to inform further live innovation trial

Budgeting Accounts

•  75% of people are paid earnings monthly in arrears. Monthly payment of benefit will prepare households for the reality of budgeting on a monthly income, will ease the transition into work, and will 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 be paid through mainstream current or basic accounts.

•  Having access to a transactional account will enable claimants to make electronic payments out of the account – such as Direct Debits or standing orders – for bills such as rent, gas and electricity.

•  Up to 1.3 million potential UC claimants currently do not use a transactional bank account to manage their benefit payments. Most of these individuals currently use a Post Office Card account (POCa) which does not offer transactional facilities.

•  We are looking at ways to make accounts with budgeting functionality, such as ‘jam jar’ accounts, more widely available. We are consulting with financial providers across the private, social and third sectors and considering the best ways to make these types of products more available.

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

•  Only considered for those who genuinely cannot manage their money and there is a risk of financial harm to the claimant or their family.

•  These alternative payment arrangements will be considered on a case by case basis and assessed on their individual merits, with pro-active use of existing business knowledge.

•  We will also have the option to make rent payments direct to the landlord if a claimant reaches a certain level of rent arrears. DPDP informing this approach.

•  When considering alternative payment arrangements, a series of Tier 1 and Tier 2 factors indicating potential support needs will be used to help to decide if these arrangements are appropriate to an individual

•  Subject to a review as claimants become able to manage their money, the goal is that claimants move to standard monthly payments over time supported by PBS.

PBS Guidance and Universal Credit Personal Planner

•  PBS guidance is now available on the DWP web site: http://www.dwp.gov.uk/policy/welfare-reform/universal-credit/latest-on-universal-credit/#uclssf

•  The UC personal planner is due to go live on the Gov.uk site soon and is a set of questions for potential UC claimants to see how ready they are for UC and to provide tailored information/actions to start preparing for the changes. It covers the key financial changes and claiming and managing UC online.

•  Provides claimants with a good understanding of the changes and what they mean for them. They are signposted to links on the Internet e.g. how to set up a bank account, how to better manage their money, how to be secure online.

Tested with claimants with positive feedback

Next Steps

•  Working closely with the pathfinder implementation team and LA s to deliver the PBS detailed business process to support pathfinder that went live on 29th April.

•  Continue to capture early learning from the Direct Payment Demonstration projects to inform PBS design.

•  Evaluation of the learning from pathfinder to inform design for future phases

•  Integration of the PBS approach into the Local Support Services Framework

•  Continue to engage with stakeholders and our established Support and Exceptions Working Group to help us develop and deliver this work.

Universal Credit Programme Caseload Migration

Managed Migration Episodes

Description Update

Managed Migration – Spring/ Summer 2014 to “late” 2015. Focusing on those customers who will gain the most and easiest to migrate to UC. These will be predominately WTC customers who are closest to the labour market.

A managed migration process is being developed – some WTC migrations will be pre-existing HB customers. The UC model suggests 18% of the HB load also receive WTC. These are expected to migrated toward the first part of the migration window.

Geographical Migration – “early” 2016 to October 2017. The residual rump of HB customers – these will be predominately IS and ESA customers, but the lobster pot effect will have degraded rump volumes.

The managed migration process will be applied to geographical migration.

Geographical Migration

Three phases to the high level process:

•  Preparation – agreement between UC and the LA as to which claimants are to be migrated

•  Selection – the customer to be informed of the impending migration to UC and what they need to do now and in the future

•  Trigger – the customer is informed they need to claim UC Legacy claims are terminated

The overall migration window for each LA will be a maximum of eight months

Small LAs will be migrated within a single caseload phase

Large LAs will be migrated within multiple or staggered caseload sub-phases

We need to define “small” and “large”. The single/multiple phasing will be flexible

Scheduling •  Do you place the four “Pathfinder” LAs – Warrington, Oldham, Tameside and Wigan – to

the front of the schedule?

•  The work on the managed migration process allows DWP to take the vertical schedule stacks and timeline individual migration windows

•  More work on the volumetrics model is needed to understand individual LA volumes at:

•  The start of national Managed Migration – Spring 2014

•  The start of Geographical Migration – early 2016

•  The point of individual LA migration – some point between early 2016 and October 2017

•  Finally all this conceptual work on Managed and Geographical work will need to be presented to and agreed by the DWP Secretary of State and the UC Programme Board

In Conclusion

• Universal Credit has begun

• The implementation is being slowed

• Caution appears to be the approach

• The journey now begins for housing benefit and local government

• Little has been said of the housing element

• Local Government is beginning to understand what may be left behind

• Resource planning is critical