Universal CreditEverything you need to know

Providing Quality Homes & Neighbourhoods

The Government is combining a range of benefits for working age people into a single benefit called Universal Credit.

This is currently being rolled out in Bassetlaw and replaces:

• Jobseeker’s Allowance (income based)

• Employment and Support Allowance (income related)

• Income Support

• Child Tax Credit

• Working Tax Credit

• Housing Benefit

Universal Credit will be paid directly to a claimant’s bank account in one monthly payment, in the same way as a monthly salary.

What is Universal Credit?

www.a1housing.co.uk

Because Housing Benefit is being replaced by Universal Credit, A1 Housing will no longer automatically receive the Housing Benefit part.

This means that tenants who receive Universal Credit will be responsible for paying their rent to A1 Housing.

You will need to open a bank account. If you do not already have one, our Money Advice Team can help you with this.

tel: 0800 590 542

• The Government has said that claims for Universal Credit will need to be made online (via a computer)

• A1 Housing, Bassetlaw District Council and welfare rights advice agencies are looking at how they can help people with this and we will be providing further information to you on those arrangements

• In exceptional cases telephone claims may be allowed

• Universal Credit helpline 0345 600 0723 or visit www.gov.uk/universalcredit

ShiresC R E D I T U N I O N2

Money Issues• The Government wants people to have more

responsibility for the management of their income and so Universal Credit will be paid directly to each person or family making a claim

• The direct payment will be paid as a lump sum each month and will include the amount you are entitled to towards your housing costs (rent)

• To receive Universal Credit you will need a bank account for the benefit to be paid into. A1 Housing are working with 2 Shires Credit Union to provide a budgeting account that would help tenants to make sure their rent is paid

How will a claim for Universal Credit be made?

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The Government’s draft regulations state there will be only two exceptions to the direct payment arrangements:

• Firstly, people who are classed as ‘vulnerable’ will be able to have their housing costs paid direct to A1 Housing. We are currently waiting for the Government to tell us who will be classed as ‘vulnerable’

• Secondly, the DWP will decide on an individual basis whether people who fall into rent arrears can have their housing costs paid direct to A1 Housing. However, this can be simply avoided by setting up a Direct Debit

Can I have my housing costs paid direct to A1 Housing?

Will this affect my rent?

Currently, if you’re entitled to help towards your rent this is paid directly to A1 Housing by the Council’s Housing Benefits Service.

• Once you transfer onto Universal Credit the amount paid to cover your housing costs will be paid directly to you by the DWP

• You need a bank account for the benefit to go into. Set up a Direct Debit to ensure your rent is paid to A1 Housing and you don’t fall into arrears

• DO NOT be tempted to spend the money allocated for your rent on anything else other than your rent, or you will put yourself at serious risk of losing your home

Manage your money

Monthly paymentsThe Government think that paying Universal Credit monthly will help promote good budgeting and more closely replicate a monthly salary payment.

Managing your money monthlyThere are lots of ways to do this, like:

• Using a monthly budget planner

• Using a budgeting account

• Having a savings jar or better still an account with 2 Shires Credit Union

• Write down what you spend in a notebook

• Using direct debits

• Electronic banking

• Getting help from friends and family

Best of all:

• Speaking to A1 Housing’s Money Advisors

Yes, you need a bank account to receive Universal Credit

Basic bank accounts are the simplest type of bank account. They are designed for people who don’t want an overdraft, or can’t have one. They don’t provide a cheque book and are particularly useful if you have a low credit score.

With most accounts, you can:

• have wages, salary, benefits and pensions paid straight into your account

• pay cheques in for free - you’ll be able to spend the money after four working days

• withdraw money at Post Offices and cash machines

• pay your rent and other bills by Direct Debit

• pay money in, withdraw it or check your account balance

Some accounts will also give you a debit card.

Do I need a bank account? Basic bank accounts

Useful tips• Before opening a basic bank account make

sure it offers the services you need, such as Direct Debits and debit card withdrawals

• Check if there’s a buffer zone that lets you withdraw a small amount like £10, even when your account balance is lower so you can still get money using a cash machine

• Only use cash machines that don’t charge a fee

• Checking your balance regularly will help you to ensure there’s enough money in your account to cover any Direct Debits - avoiding charges for having them rejected

The Post Office will be offering current accounts from 2014. Many people already

have a Post Office card account, so swapping to a current account will be an easy step.

Open a Bank AccountYou must have a bank account to be able to receive Universal Credit.

Get OnlineIf you don’t own or have access to a computer, then Bassetlaw District Council and A1 Housing will be providing access points in the One Stop Shops. We will also be making arrangements for tenants that live in our rural communities.

Manage your ClaimUniversal Credit claims will normally be made through the internet. Claimants will have an online account through which they will be able to access information about their claim and payments. Claim assessment and award calculations will usually be made automatically, so will be processed quicker and more efficiently. Claimants will report significant changes of circumstance online. For changes such as moving into work, losing a job, having a child or becoming sick, there will be an automatic re-assessment, providing a faster and more reliable experience than at present.

Speak to an A1 Housing Money AdvisorWe want to help you to manage your money so that you can make sure you pay your rent to us and also that your other bills get paid.

To do this our Money Advisor will help you to draw up a monthly budget. This will show you how much money you’ve got coming in each month and what you will need to pay out.

Pay your RentUniversal Credit means that any help you receive towards your rent will be paid directly to you. So you will be responsible for paying all of your rent to A1 Housing. If you do not pay your rent you will be at risk of losing your home.

If you need help to open a bank account, budget or even to get a better understanding of Universal Credit then contact A1 Housing’s

Money Advisors on 0800 590 542.

Universal Credit Checklist

If you need any help communicating with us or understanding any of our documents, please contact us on 0800 590 542.

We can arrange for a copy of this document in large print, audiotape, Braille or for a Language Line interpreter to help you.

Providing Quality Homes & Neighbourhoods

0800 590 542

www.a1housing.co.uk

customer.services@a1housing.co.uk

Text us on 07860 021 511

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