Welfare Reform

Flexible Payment Arrangements for the local delivery of Universal

Credit

15 November 2012

Flexible Payment Arrangements

Following agreement with Lord Freud, IT functionality will be developed for April 2014 to enable launch of Universal Credit in Northern Ireland with the capacity to:

• make payment of Universal Credit twice a month

• enable payment of Universal Credit to be split between two parties in the household

• enable housing costs to be paid direct to the landlord

Universal Credit IT System

• The Programme Team are working with DWP to develop the IT functionality to facilitate Flexible Payment Arrangements from April 2014

• It is assumed the criteria for split payments and twice monthly payments will be applied offline by a decision maker – the payment will be supported by the IT functionality

Personal Budgeting Support Strategy

Recognising the challenges brought about by the financial changes required under Universal Credit, a Strategy is being developed around three key themes:

– Personal Budgeting Support; – Flexible Payment Arrangements; and– Financial Products.

The strategy will outline the approach to supporting customers through the financial changes resulting from the introduction of Universal Credit.

Membership of the Flexible Payment Arrangements for Universal Credit Oversight Board

Oversight Board

DSD Permanent SecretarySenior Responsible

Officer, Universal Credit

Community Faith’s Forum

Money Advice Expert

Women’s Organisation

Academic – Social Policy and/or

Economics

Housing Rights Representative

Operational payments expert

Timeline for Development of Criteria for Universal Credit

November 2012

December 2012

January 2013

February 2013

March 2013

15th November 2012 Long Gallery Event to

communicate High Level Overview and seek input

on Criteria

Initial Open Listening¹ Event to engage with

Voluntary and Community sector

(public representatives and other interested

parties) to draw up first draft of Criteria

(Belfast area)

Flexible Payment Arrangement Criteria Agreed by Minister

Final Meeting of Oversight Board to

finalise/agree Criteria

Meeting of Oversight Board to consider first draft

of Criteria

Second Open Listening Event¹ to

engage with Voluntary and Community sector (public representatives

and other interested parties) to review draft

of Criteria

(Londonderry area)

Meeting of Oversight Board to

consider further draft of Criteria

Initial Meeting of Oversight Board to

agree Terms of Reference

Paper to Executive Sub

Committee

Submission to Minister

Paper to DSD Committee

¹ Minister to attend Opening Listening Events

Workshop with Voluntary & Community Sector

Workshop with Voluntary &

Community Sector

Objectives for tonight:

• Identify particular customer groups who should be eligible for each type of flexible payment

• Suggest criteria to be applied for each flexible payment

• Identify what issues may present for each flexible payment

Areas for discussion

• Criteria for allowing a split payment of Universal Credit between two parties in the household;

• Criteria for allowing payment of Universal Credit twice a month; and

• Criteria for opt out when direct payment to landlords has been in place

Criteria for allowing a split payment between two parties in the household

• Under what circumstances should the Department allow a split payment between two parties in the household?

• Should the Department aim to encourage both parties to agree the percentage split?

• Should earnings from work be taken into account when deciding the percentage split of payment?

• Should it be 50 – 50 split or should the split be driven by components within the claim e.g. child payments?

• What way should deductions by applied when the payment is split e.g. overpayment deduction, housing cost deductions, between two parties?

Criteria for allowing payment of Universal Credit twice a month

• Under what circumstances should the Department allow payment twice a month?

• Should the department offer banking payments/money advice before considering whether to pay twice a month?

• How can the criteria ensure volumes are controlled and Flexible Payments Arrangements are not manipulated?

• What sanctions, if any should be introduced if customer (household) fails to participate in personal budgeting support programme?

Criteria for opt out when direct payment to landlords has been in place

• Should the Department place any restrictions, and under what circumstances, on customers opting out from direct payment to landlords of the Housing cost element of Universal Credit?

• Can the landlord request direct payment facility is set up if the customer defaults?

• How will any shortfall be covered if the Housing cost element

does not cover the rent?

Objectives for tonight:

• Identify particular customer groups who should be eligible for each type of flexible payment

• Suggest criteria to be applied for each flexible payment

• Identify what issues may present for each flexible payment