1 Universal Credit Local Support Services Update and Trialling Plan David McKenlay Head of Strategy for Local Support Services 20 December 2013.

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Universal CreditLocal Support Services Update and Trialling Plan

David McKenlayHead of Strategy for Local Support Services

20 December 2013

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Outline

• Background

• Update

• Trialling Plan

• Next Steps

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Universal Credit – overview

• Universal Credit replaces six in work and out of work benefits.

• Universal Credit requires claimants to accept a ‘Claimant Commitment’. This sets out what is expected in return for receiving assistance, taking into account personal circumstances and capability to earn.

• Claimants will be able to apply for their benefits online. Nearly 80 per cent of benefit claimants already use the internet. Telephone and other support services available if needed.

• A single payment will be made to a household rather than an individual. This will include housing costs. It will be paid monthly, in arrears.

• Designed to make work pay. As claimants earn more money, financial support will be withdrawn at a slower rate than is the case under the current system. Real Time information (RTI) link with HMRC will facilitate this.

• Local support will be available to help claimants where appropriate. This will be provided through DWP and local authority delivery partnerships.

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Background

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What is the Local Support Services Framework?

• The Local Support Services Framework (published February 2013) outlines how claimants with complex needs will be supported to ensure they can make and manage a claim to UC

• 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

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Who do we think may require LSS services?

Claimants with mental health issues

Geographically isolated people

Multi Agency Public Protections Agreement (MAPPA) restricted claimants

Care leavers

People with Financial Inclusion or severe debt issues

Domestic Violence victims

People with physical and/or sensory disabilities

Non EEA citizens – including refugees

Entitled 16/17 year olds

Prison leavers

People with English language limitations

Homeless people

People with addiction problems (drugs/alcohol/gambling)

• People with literacy/numeracy difficulties

Claimants with learning difficulties

Those under the supervision of the Troubled Families Initiative

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Support around housing choices (and homelessness prevention)

What existing services will be provided?

Home Visits Evidence Verification (by LAs and RSLs as well as DWP)

Intermediary support

Processing exceptions to normal payment rules (payments to landlords)

Urgent support for resolving an issue with a claim (e.g. DWP AJCS service)

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What new services will be provided?

Triage and Orientation Online access Budgeting support

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Funding local support services

• LSSF has been developed to enable a more holistic and joined up service for claimants at a local level, which builds on the support already provided by DWP, councils and other partners, such as housing providers, charities and social care services

• The LSSF recognised that new funding would be required to reflect the additional support provided to some claimants who need assistance to access welfare and who need help to get online and manage their household finances.

• LSSF funding will only be available for services newly required or experiencing an increase in workloads as a direct consequence of Universal Credit

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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.

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Local Delivery Groups: What are we hoping to achieve?

Local Authority

CommunityReps

Welfare Rights

DWPDistrict/Partnership

Managers

Digital Charities

Adult Social Care

LA Services (e.g. libraries)

Ex-offenderServices

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

LAPartner

LAPartner

LAPartner

LAPartner

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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

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

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Universal Credit Update

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Test & Learn

End-state Service Development

2014 2015 2016 2017

Transition & Migration

Couples

Children

North West

Expand scope, starting in Summer 2014

Expand scale, once scope expansion is safely tested

Claimant CommitmentDigital JobcentreUniversal Jobmatch

Universal Credit timeline

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Roll out from October 2013 – Spring 2014

• October to Spring 2014: Progressive roll out of Universal Credit begins to a further 6 Jobcentres across England, Scotland & Wales, with offices taking new claims to Universal Credit:– Hammersmith, Rugby and Inverness are now taking Universal Credit new

claims – Bath, Harrogate & Shotton will take new claims by Spring 2014

• October to Spring 2014: Claimant Commitment rolling out nationally to around 100 Jobcentres a month for new claimants to Jobseekers’ Allowance, to support cultural transformation:– 25,000 Jobcentre Plus advisers retrained to deliver Claimant Commitment

• From October: 11 in-work progression pilots being delivered.

• From October: Improved digital services rolling out nationally across Jobcentre Plus:– 6,000 new computers will be installed across the country, helping

claimants search and apply for jobs online, claim on-line benefits and improve their digital skills.

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Roll out from Summer 2014

• We will continue to expand our current live service and functionality:– From summer 2014 we will progressively start to take new claims for

Universal Credit for couples – From autumn 2014 we will take new claims from families – Once it’s safely tested we will also expand the roll out to cover more of the

North West of England.

• Our plans will allow us to make Universal Credit available in each part of Great Britain during 2016: – New claims to existing benefits Universal Credit replaces will close down– The vast majority of the remaining claimants moving onto Universal Credit

during 2016 and 2017.

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Pathfinder

Universal Credit Pathfinder • Pathfinder is testing the new system with

local authorities, employers and claimants in a live environment.

• It provides an opportunity to learn lessons before extending the service and bringing in more complex cases.

Scope• Pathfinder focuses on new single,

unemployed people, with or without rented housing costs, in selected areas in Tameside, Wigan, Oldham and Warrington local authority areas.

• It started with Ashton-under-Lyne on 29 April. Wigan joined on 1 July, Oldham and Warrington started on 29 July.

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Pathfinder update (1)

• All Pathfinder locations of Ashton-under-Lyne, Wigan, Warrington and Oldham are now taking claims to Universal Credit.

• The majority of claims from Universal Credit claimants in all 4 Pathfinder locations have been made online.

• Already seeing people moving into work as you would expect with this claimant group.• Claimants making use of services provided by local authorities

– Internet Access Devices– support to make a Universal Credit claim on line– Personal Budgeting Support

• Process in place to make alternative payments to vulnerable claimants, including:– split payment– managed payment, i.e. landlord paid housing costs– more frequent payment period, i.e. fortnightly

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Pathfinder update (2)

Early evaluation of Pathfinder:• Almost two-thirds of Universal Credit claimants think that the new system

provides a better financial incentive to work• Universal Credit claimants are doing more to get into work than jobseekers

claiming under the current system• 90% of Universal Credit claimants are making their claims online and over

three-quarters (78%) of Universal Credit claimants also feel confident about their ability to budget with monthly payments

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Local Support Service

Update and Trialling Plan

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An opportunity to re-focus • We published the Universal Credit Local Support Services Update and Trialling Plan on 6 December in

collaboration with local authority associations representing England, Scotland and Wales.

• The update follows February’s original Framework, which provides a structure for the delivery of local support services to individuals needing additional help with the new demands of Universal Credit. And it refocuses the local support services work following the July and December announcements on the roll out of Universal Credit.

• Universal Credit involves significant changes to the way that benefits are delivered. Evidence from previous reforms, together with data now emerging from the Direct Payment Demonstration Projects indicates that most people will be able to cope with the new features of the Universal Credit system.

• However, we recognise that some people will need extra help; this could include help with getting online or with managing on a monthly budget and paying their own rent.  This is why we created the Local Support Services Framework.

• The Update sets out how we plan to trial and test elements of the Framework.  It also provides information on progress and agreement since the February publication. This includes:

·       Aspects of the financial model and incentive structure;

·       Use of the European Social Fund as a potential funding stream;

·       Partnership development;

·       Development of Personal Budgeting Support initiatives;

·       Service mapping; and

·       Social Justice delivery

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What are we going to trial?

• Partnership working

• Partnership Agreements

• Financial Management

• Effective Delivery of front-line services

• Applicability of the European Social Fund

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Where will we do the trialling?

• Pathfinder sites

• LA-Led Pilot Sites

• Volunteer sites

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Good practice and lessons learnedDirect Payment Demonstration Projects

Identifying what interventions best help tenants and landlords – e.g. different levels of arrears at which direct payment reverts back to landlords, ways of providing support to tenants and using a range of payment methods.

Local authority led pilots

Aim to explore approaches on how local expertise can support residents to claim Universal Credit, and so:a) Partnership working which is key area of work

b) encourage people to access online support independently;

c) improve their financial independence and how they manage their money; d) deliver efficiencies and reduce homelessness.

Key: UC LA led pilots Direct Payment Demonstration Projects

Edinburgh

North LanarkshireWest Dunbarton

Dumfries &Galloway

WakefieldWest Lindsey

MeltonRushcliffe

ShropshireBirmingham Oxford

TorfaenCaerphillyNewport Bath & NES

North Dorset

Lewisham

Southwark

OldhamWigan

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Next Steps

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What can LAs be doing now?

• 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 forums that could, eventually, act as Local Delivery Groups.

• Start to map out relevant services, examining both levels of provision and gaps.

• Build 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.

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What can Social Landlords and Charities be doing now?

• Speaking to your LA contacts about planning that’s taking place (this is preferable to approaching DWP DMs)

• Thinking about your relative organisational strengths and capacity – what are you already doing well? What services could you provide as part of a Partnership?

• Review the support that you provide to tenants in the context of the “single claimant journey” from dependency on benefits towards independence and, wherever possible, into work.

• Keep an eye on the UC for LAs website for further developments www.dwp.gov.uk/ucla

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Questions?