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Universal Credit - I Veterans

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Universal Credit - I Veterans
Universal Credit
May 2012
Speaker name
1
Department for Work and Pensions
The welfare reform programme
• Key aim of the Government’s welfare reforms
– to help people to move into and progress in work, while
providing support for those who need it.
• Key elements of the reform programme:
– The Work Programme – launched in June 2011
– Measures in the Welfare Reform Act including reform of
disabled people’s benefits and Housing Benefit reforms.
• Regulations containing detailed provisions are now being
developed – expect to present them to Parliament in the
autumn. Before this, we will engage with key stakeholders on
the draft regulations.
• Universal Credit is at the heart of the Government’s reforms.
2
Department for Work and Pensions
Why do we need Universal Credit?
• we are simplifying a complex system of multiple benefits:
– the current system has over 10,000 pages of guidance for
advisors
– it is expensive to administer
• we are making work pay:
– more help for low income working families
– claimants will keep more of what they earn
– improving incentives to increase hours of work
– simplified system will make moving to work feel less ‘risky’
3
Department for Work and Pensions
What is Universal Credit?
4
A policy
that tackles welfare dependency, poverty and
worklessness by making work pay
A benefit
that replaces a complex system of working-age
benefits and credits with the Universal Credit and a
single set of rules
A gateway
that together with our employment support
programmes, helps people into work
A platform
that will help us deliver an internet-age service whilst
continuing face-to-face support for those who need it
An ambition
reforming welfare to transform lives
Department for Work and Pensions
How is Universal Credit different?
Current System
Universal Credit
The welfare system has more
than 30 benefits each with their
own rules and criteria
Universal Credit provides a new single system
means-tested support for working-age people
who are in or out of work
Work incentives can be
very low, benefits are reduced
to take account of earnings but
different benefits have different
rules
Universal Credit will ensure that work pays.
Financial support will be reduced at a
consistent and predictable rate and people will
generally keep a higher proportion of their
earnings
Conditionality: some benefit
claimants are capable of working
but have no obligations to look
for work
Universal Credit will personalise conditions
according to people’s capability and
circumstances
Payments are paid to different
adults in a household and for
various periods
Universal Credit is a single monthly payment
to each household (Though we will retain the
ability to pay more frequently or to split
payment in exceptional circumstances)
5
Department for Work and Pensions
Simplifying a complex system
Current system
Income related JSA
Income related ESA
Income Support (including SMI)
Working Tax Credits
Child Tax Credits
Housing Benefit
Disability Living Allowance
Universal Credit
Personal Independence Payment
Pension Credit, Child Benefit, Carer’s Allowance (will remain)
Council Tax Benefit (Localised Council Tax Schemes)
Contributory JSA and ESA (still considering how these will work)
6
Department for Work and Pensions
Making work pay
“Universal Credit will mean that people are consistently and
transparently better off for each hour they work and every pound
they earn.”
Iain Duncan Smith, Secretary of State for Work and Pensions
• The Government wants families to be able to manage their affairs in
a manner that best reflects the demands of modern life, whether in
or out of work.
• A key aspect of Universal Credit will be that it should mimic work
and the receipt of a salary.
• Universal Credit is designed to ensure that it is always worth
working by allowing people to keep more of their benefit in the
transitional period back to work.
• Actual rates and tapers to be decided by Autumn 2012.
7
Department for Work and Pensions
£500
A simpler system with clear work incentives
£300
£400
Universal Credit: lone parent
with two children
£200
Total in-pocket
income
£100
200
100
£0
Universal Credit
payment
0
100
£100
8
£200
£300
£400
£500
£600
£700
Department for Work and Pensions
Making work pay - Real Time Information
• Universal Credit payments will be reduced in stages, taking actual
earnings into account at the time they are received.
• Monthly income will be reported by employers through the Real Time
Information (RTI) system being introduced by HMRC
• RTI will be simpler and less burdensome for claimants and employers;
this is a driving factor behind the changes.
• RTI pilot was launched on schedule on 11 April 2012 initially with 10
employers in a controlled go live.
• HMRC are gradually building up the number of employers involved in
the pilot during 2012/13. By March 2013, aim to have around 250,000
employers reporting RTI.
• On track for most employers to join RTI from April 2013 and for all
employers to be routinely reporting PAYE in real time before Oct 2013.
• Universal Credit Programme and RTI are working very closely together
on both the technical design and in terms of migration planning,
customer insight and communications.
9
Department for Work and Pensions
Universal Credit
Designed and built around real claimant journeys
10
Department for Work and Pensions
Design focused on claimant journeys
Jack books an interview
appointment & uses additional
services
Jack books an interview
appointment and provides
information that will be relevant
during his interview
Jack is also guided to various
Universal Credit resources that can
help him find and apply for a job
These include tailored job
searches, a personal skill profile
from which he can create an online
CV, tips for attending interviews,
and available training courses
11
Department for Work and Pensions
Design focused - tested as we build
12
Department for Work and Pensions
Developing the Delivery Model
Since May 2011 we have worked in partnership with HMRC and local
authorities to co create the design options for the face to face service
delivery from 2013
DWP National Service
Offering
Labour market services
Claimant support
Complex needs
Budgeting support
Visits
Online access
Risk identified
Local Flexibility
Claimant support
Complex needs
Budgeting support
Online access
The joint design team established that a national service offering with
targeted local flexibility is the optimum solution from October 2013.
13
Department for Work and Pensions
Universal Credit
Digital by Default
14
Department for Work and Pensions
Universal Credit – why a digital service?
• The service will be digital by default because it is better for claimants, staff
and taxpayers. It is:
– available: not limited to office or contact centre hours
– flexible: helping people navigate the system, showing them what they
need to see, to do what they need to do
– responsive: can be rapidly improved in light of user feedback
– informative: giving a single, integrated picture based on up-to-date
information, including latest earnings
– integrated: developing over time to join up work and benefit services,
and forming a core part of government’s online offer
– accessible: designed from the outset to meet the needs of a wide range
of users.
• And it will be digital because the future is digital:
– employers expect digital skills for almost all jobs
– mobile devices are more prevalent and powerful
– people can save money by accessing online services.
• But we recognise that some claimants will need help to use the online
service - other channels will be available for the minority who need them,
mainly phone, but also face-to-face or post.
15
Department for Work and Pensions
Universal Credit – channel objectives
There’s a four year transition period from 2013 to 2017
We don’t expect everyone to switch channels on day 1
• 50% of contacts that can be digital, should be digital in 2013
• 80% of contacts that can be digital, should be digital by 2018
For our claimants IT skills are increasingly important:
• It’s cheaper to buy goods and services online
• It’s easier to search for work online and move into work
We want to help people to make the change
16
Department for Work and Pensions
What are we doing to prepare for channel shift?
We plan to work across government, private sector and voluntary sector boundaries to create,
support and encourage opportunities to deliver the digital message.
DWP
Through providing computer access in Job
Centres.
Public Sector
Digital Deal – getting social housing tenants
online
using customer contacts to deliver ‘digital
interventions’ (e.g. when tax credits are claimed)
HMRC are introducing iForms this autumn and
improving information services on new website
Private Sector
Voluntary Sector
In partnership with other organisations, such as ESkills Agency, persuading major employers to
support and encourage their people to use work
facilities to access online services
collaboration with Go On to extend our reach to
a wider range of delivery partners than we can
influence on our own
are increasing activities and support to boost take
up of online services, e.g:

through Digital Champions,

During migration
delivering targeted & timed advice and guidance to
claimants on why and how to get online
17
working with voluntary sector who help our
claimants
providing advice, support and resources to
claimants and potential claimants
Department for Work and Pensions
Universal Credit
Delivery - Transition
18
Department for Work and Pensions
Universal Credit – implementation and
transition challenge
Universal Credit supports people into work and continues
support to ensure that work pays. To deliver this we need to:
– Convert 12 million claims to 8 million household accounts
– Create a digital platform that both meets the needs of
people who are used to managing their lives online,
whilst helping claimants who need extra support to get
online
– Ensure the right support for claimants
– Create a system capable of flexibility and continuous
improvement
19
Department for Work and Pensions
Universal Credit - delivery
• DWP will lead delivery, drawing on tax credit and housing benefit
expertise. But we are keeping options open for approaches to
delivery in the longer term.
• DWP and HMRC have announced the sites that will deliver the
telephony and processing services for the first phases of Universal
Credit from October 2013
– DWP Benefit Processing Centres – Birkenhead, Bolton,
Canterbury, Cosham, Glasgow, Sunderland, Wolverhampton,
Wrexham
– DWP Telephony Contact Centres – Bangor, Bootle, Derby,
Dundee, Grimsby, Makerfield, Middlesbrough, Paisley
– HMRC sites – Blackpool (Ryscar House), Merry Hill Contact
Centre
• Telephony and processing sites that are not listed will continue to
deliver existing benefits. Further delivery sites will be announced in
spring 2013 and 2014.
20
Department for Work and Pensions
Testing before delivery
Live Innovation Trialling (started in April 2012)
• To trial components of the end-to-end Universal Credit service proposition
in a live environment with real people in real time
Model Office (first took place in April 2012)
• A series of incremental, integrated tests in a ‘controlled’ environment that
will be built as the Universal Credit system, processes and support
products are developed
Pathfinder (planned for April 2013)
• An early implementation of Universal Credit – to enable us to learn from
experience and build confidence
• Will take place in the Greater Manchester and Cheshire area
Local Authority-led pilots (2013 focus - planned for summer 2012)
• Will test service integration, particularly design of face-to-face service
delivery, at local level for improved claimant support and work focus
• Prospectus published on LGA website on 26 April for applications by 18
May. Similar initiatives being developed in Scotland and Wales –
prospectuses published on 31 May for applications by 9 July.
21
Department for Work and Pensions
The Universal Credit Pathfinder
• Universal Credit will go live in the Greater Manchester and Cheshire
area six months before national roll-out in October 2013. The
Pathfinder will take place in Tameside, Oldham, Wigan and
Warrington from April 2013.
• It will enable DWP to test the new simpler, single benefit payment
system and its IT with Local Authorities, employers and claimants in
a live environment before Universal Credit is rolled out across the
country.
• Up to 1,500 new claimants are expected to begin receiving Universal
Credit each month throughout the Pathfinder, and throughout the
initial Pathfinder period about 9,000 households will claim Universal
Credit.
• It will only apply to certain postcodes in the named areas, and those
postcodes and the local authority and DWP offices that will be
involved will be announced soon.
22
Department for Work and Pensions
Migration - key dates
23
APRIL 2013
Pathfinder Phase 1 Go-Live
OCT 2013
New claims from unemployed claimants start
APRIL 2014
New claims from in-work claimants start
Managed migrations start
2017
Managed migration activity completed
Department for Work and Pensions
Universal Credit – the right support for
claimants
• The new service will be straightforward for many – but some
claimants will need support to deal with the changes.
• Financial Products - we are working with the commercial and
social banking (e.g. credit unions) to develop bank accounts that
have in-built budgeting capability.
• Tailored Support - we are conducting a detailed segmentation of
claimant support needs to understand the demand for such
support and to help us either build solutions into mainstream
support or develop tailored solutions.
• Exceptions - for those who will not be able to manage UC, even
with support, we are developing an exceptions framework.
• Engagement - we have established an external advisory group to
help us with this - the Support and Exceptions Working Group,
which includes representatives from local authorities, housing and
advice organisations.
24
Department for Work and Pensions
Universal Credit
Housing
25
Department for Work and Pensions
Universal Credit and housing
Universal Credit will be paid to claimants who are in work and out of
work. As most businesses pay monthly, Universal Credit will also be
paid monthly. Claimants will be responsible for managing all household
costs, including rent payments.
• To help claimants prepare for Universal Credit, we will test key
elements of incorporating housing support into Universal Credit
whilst protecting the financial position of social landlords
• Direct Payment Demonstration Projects will run for a year in six
local authority areas
26
Department for Work and Pensions
Direct Payments Demonstration Projects
Project purpose is to:
• Test the impact of various trigger points and
safeguards on social landlords
• Test safeguards for different groups of people, e.g.
trigger points for making payments to landlords, and
test budgeting tools for claimants
• Evaluate claimant communication strategy and test
landlords’ strategies for maintaining financial viability
Participating Local Authority areas:
• City of Edinburgh Council and Dunedin Canmore
Housing Association
• Torfaen Borough County Council and Bron Afon
Community Housing and Charter Housing.
• Wakefield Metropolitan Borough Council and
Wakefield and District Housing
• Shropshire Unitary County Council and Bromford
Group, Sanctuary Housing, and Wrekin society.
• Oxford City Council and Oxford Citizens (part of the
Greensquare Group)
• Southwark Council and Family Mosaic
27
Department for Work and Pensions
Universal Credit and Pension Credit
• As a result of the introduction of Universal Credit the following changes will
be made to Pension Credit:
– help with eligible rent. Support for eligible rent for customers over
Pension Credit qualifying age will be provided through a new component
of Pension Credit called Housing Credit
– help with dependent children. A new additional amount will be included in
the Guarantee Credit element of Pension Credit for dependent children.
• The earliest date that these changes will be incorporated into Pension Credit
new claims is currently 12 months after the go-live of Universal Credit e.g.
October 2014.
• The current planning assumption is that migration of Housing Benefit and
Tax Credit information for Pension Age customers will be completed by
October 2017.
• The intention is that the migration process for pension age customers will be
as intervention free as possible. The underlying principle of the migration
approach will be to ensure continuity of financial support.
28
Department for Work and Pensions
Universal Credit
Working in partnership
29
Department for Work and Pensions
How is the Programme working with Local
Authorities? (1)
• A key partner – we are seeking to utilise their expertise, skills and success to
inform the Universal Credit delivery model.
• Local Authority groups are represented at various levels within the
Programme, including the Senior Stakeholder Board and the Local Authority
Transition Working Group.
• A number of individual Local Authorities are represented on a range of
Universal Credit working groups.
• Local Authorities are taking part on the six Direct Payment Demonstration
Projects.
• Local Authority-led pilots, planned for summer 2012, will test service
integration, particularly design of face-to-face service delivery, at local level
for improved claimant support and work focus.
30
Department for Work and Pensions
How is the Programme working with Local
Authorities? (2)
• Currently undertaking a programme of visits to Local Authorities to
– Understand more their role in supporting claimants
– Identify expert individuals who can advise the programme
– Identify services developed by Local Authorities, such as on line access
and financial inclusion.
• Visits are also an opportunity to build relationships with Local Authority
managers and staff.
• Over 120 Local Authorities visited so far.
• Working with Local Authorities has so far achieved:
– An understanding of how services operate at a local level and the value
of local knowledge
– Revealed excellent practice amongst Local Authorities in some key areas
– Established an extensive network of expertise from Local Authorities and
other local partners
31
Department for Work and Pensions
How is the Programme working with HMRC? (1)
• The Universal Credit Programme is working closely with our delivery
partners in HMRC:
– A dedicated ‘HMRC Business Change Team’ has been established in the
Programme to ensure the right people from HMRC are involved with the
development of UC and are working together to conduct analyses of the
impacts UC will have on HMRC. The overall aim of the team is to ensure
that HMRC are ‘ready, willing and able’ to successfully deliver changes
needed to launch UC.
– The Programme are working in partnership with HMRC, using their
experience of the introduction of Tax Credits to ensure UC is designed
with a detailed understanding of HMRC customers. This is helping shape
policies, customer journeys, migration, IT through to delivery of UC.
– Staff from HMRC have been seconded to critical posts to share expertise
and best practice from Tax Credits and wider HMRC areas which
contribute to the development of the UC Programme.
– HMRC Business Change Team are managing relationships so HMRC are
engaged at various levels of the UC Programme including stakeholder
groups and governance boards.
32
Department for Work and Pensions
How is the Programme working with HMRC? (2)
– To ensure a joined-up approach, HMRC have their own Programme
Management Office to co-ordinate inputs to outputs from the UC
Programme, e.g. the Business Change Impact Assessment.
– Both Departments are working very closely on IT delivery in UC,
including the ‘Real Time Information’ system which allows employer
and employee information to feed into the calculation of UC.
– HMRC are setting up a Model Office to develop and improve
processes so customers can be supported through the journey from
the stopping of their Tax Credits to moving to Universal Credit.
– We are working across Departments to consider the implications of
UC on wider tax administration and the impact on business,
employers and agents.
– We have joint working with Ministers Lord Freud (DWP) and David
Gauke (Exchequer Secretary to the Treasury).
– Iain Duncan Smith is also involved in chairing senior boards to
oversee the Programme.
33
Department for Work and Pensions
How is the Programme working with Scotland?
• Social security is a reserved matter for the GB government, but it
interacts with many devolved matters. The Universal Credit
Programme is engaging with:
– Scottish Government – who are members of the Universal
Credit Senior Stakeholder Board.
– Scottish Local Authorities – are represented on Universal
Credit Local Authority forums, the Convention of Scottish Local
Authorities (COSLA) are members of the Senior Stakeholder
Board, input from several Scottish Local Authorities to Universal
Credit working groups.
– The third sector and other stakeholders – for example, in
February the Programme will be attending the Scottish Council of
Voluntary Organisations annual conference, the Jobcentre Plus
Scottish Customer Representative Group.
• Scotland is represented in testing of Universal Credit – Direct
Payment Demonstration Project in Edinburgh and COSLA has
published a prospectus for Local Authority pilots in Scotland.
34
Department for Work and Pensions
How is the Programme working with Wales?
• Social security is a reserved matter for the GB government,
but it interacts with many devolved matters. The Universal
Credit Programme is engaging with:
– Welsh Government – who are members of the Universal
Credit Senior Stakeholder Board.
– Welsh Local Authorities – the Welsh Local Government
Association (WLGA) are members of the UC Stakeholder
Board and are also represented on the UC Transition
Working Group, and we have visited seven Local
Authorities in Wales.
– The third sector and other stakeholders – for example,
our visits to Welsh Local Authorities have involved meetings
with landlords (social and private) and hearing from third
sector partners involved in supporting claimants with
complex needs.
• Wales is represented in testing of Universal Credit – Direct
Payment Demonstration Project in Torfaen and WLGA has
published a prospectus for Local Authority pilots in Wales.
35
Department for Work and Pensions
How is the Programme engaging with external
organisations?
Stakeholder Strategy in place
•
•
Engagement at different levels
Links to appropriate areas within Programmes
Includes engagement at:
•
•
•
•
36
Roundtable Senior Stakeholder Forums
Events targeted at areas of design
Local engagement with local stakeholders
Touchbase, e-bulletin
Department for Work and Pensions
Universal Credit
Summary and conclusion
37
Department for Work and Pensions
In Summary
• We are making good progress in delivering Universal Credit.
• We are building a 21st Century benefits system – designed with
flexibility and with continuous improvement from the outset.
• We are designing a service based on claimant journeys –
involving them and staff in that design from the outset.
• We are aware that there are challenges ahead.
• We are working with our partners and stakeholders, using their
specialist knowledge and skills to understand and meet those
challenges, so we design and deliver a successful service for our
claimants.
38
Department for Work and Pensions
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