UC the story so far !! July 2013
Let me tell you where we are!!! Overview of where we are now with UC Look at the key changes that UC brings for our claimants Look at what we can do now to start preparing both ourselves and our claimants for these changes Show you what UC means for our customers Planning for UC
Conditionality & Sanctions Benefit Cap Some other changes have been made as a part of the wider Welfare Reform Agenda which link directly to preparation for UC rollout: Universal Jobmatch Social Fund Reforms Disability Living Allowance Reforms
Universal Credit Pathfinder Ashton-under-Lyne Was the first Jobcentre to accept claims for Universal Credit from 29 April. Universal Credit claims were made from day 1 across the whole customer journey. The first monthly payments have been made successfully. Wigan Jobcentre have accepted claims for Universal Credit from 1 July 2013 Warrington and Oldham Jobcentres have accepted claims for Universal Credit from 29 July 2013 Protect 3
Universal Credit will be an online experience Why we’re doing this: Being online brings many other benefits, from easy access to government services to a wide range of financial savings from deals that are only available on the web. The internet can also help people to interact socially or play a bigger part in their local community. Many jobs require online or computer skills, so developing these skills makes the claimant more employable. People with poor digital skills are excluded from the 72% of jobs that require basic IT skills. W W W People who are more comfortable with using the internet can use it to look for and apply for jobs. This will make jobseeking easier, more efficient and more effective. The world is increasingly digital, and people who are not online will be increasingly left behind. We will provide the support that people need to go online. Take the UC online test….. Universal Credit Personal Planner
Face to Face Jobcentres will:- • Continue to lead on labour market support • Support claimants to increase income through work • Deliver appropriate intervention regimes; offering access to other labour market activities delivered by partners and suppliers • Encourage and mediate claimant access to the on-line channel However:- • Some claimants will need help accessing and using the online gateway • Some claimants will need help managing new responsibilities placed upon them by UC. • Local level infrastructure already exists to support claimants - this comprises local authorities, social housing providers and Voluntary organisations amongst others-and we need to help, support and inform this infrastructure for UC
A claimant commitment like a contract of employment Why we’re doing this: COMMITMENT The claimant commitment mirrors the kind of contract that people will sign when they start work. In exchange for undertaking certain activities the employee/claimant will receive a form of wage and other services. CONTRACT By using a contract structure we make it clearer that the claimant must fulfil certain conditions if they are to receive their UC payments. The consequences of failing to comply with the conditions agreed under the claimant commitment will be made clear from the outset. This should encourage claimants to undertake activities that will help them to prepare for and find work.
A claimant commitment like a contract of employment “Working with you to help you and your family become more independent” Earning all you can be expected Working but could do more Not working Too sick to work right now Too committed to work right now We will support you It pays to work more or you must work more Not able to work at all It pays to give work a go or you must give work a go We will support you and (It pays to give work a go) We will support you or (It pays to give work a go) We will support you Personal Pathways for six key groups Personal Pathways for six key groups
Conditionality Groups - Definitions • Earning enough - these customers are in work and considered to be earning enough ie cannot be expected to work/earn any more and will have no conditionality expectations. • Working but could do more - these customers are in work, but could easily earn more through increased hours or other better paid work. These customers will have expectations of further jobsearch included within their claimant commitment and will be subject to conditionality legislation in order to receive their UC. • Not Working - expected to be fully active in their jobsearch, finding a job is a full time job and conditionality legislation will apply. • Too sick to work right now - may not be fit right now, but will be expected to return to work in the future, activity to prepare for that return to work can be imposed as part of the claimant commitment, conditionality legislation will apply. • Too committed - caring responsibilities impair the claimants ability to work right now i.e. young children, however they must participate in work preparation activity as detailed in their Claimant Commitment, conditionality legislation will apply. • Too sick to work at all - no expectation or requirements.
Universal Credit will be Paid monthly Why we’re doing this: 75% of people in work in the UK are paid monthly. By paying UC monthly we will help claimants to get used to managing a monthly budget, which will remove one of the difficulties that people face when they move from benefits to employment. Many UC claimants will be in work. Monthly payments will be more aligned with their earned salaries. The findings from the Direct Payment Demonstration Projects will help us to understand how claimants cope with monthly payments and the best way to help support people. We will be able to identify those households that are struggling with monthly budgets and offer them the support they need to effectively manage their finances.
Money will go to the household, not an individual Why we’re doing this: A single payment enables a household to clearly see the effect of their decisions about work on total household income. This encourages claimants to take responsibility for budgeting. People within a household are best placed to make money management decisions that affect them. In exceptional cases we will allow alternative payment arrangements, such as payments split between members of a household. These can be used where there is evidence of domestic abuse or manipulation of the money by one member of the couple.
Payments based on earnings, not hours worked The changes: Whether a part-time worker is entitled to payments under UC will be determined by the amount they earn, not how many hours they work. This means that someone working more than 16 hours a week may be entitled to UC payments, whilst someone working fewer than 16 hours may not. See James story….
What are we doing to prepare our customers? Latest updates – Universal Credit for local authorities - DWP Universal Credit toolkit for partner organisations - Detailed guidance - GOV.UK