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UNIVERSAL CREDIT

Dave Ormsby & Dale Eccleston

Universal credit What it means for you Universal Credit provides a single monthly payment if you are on a low income or out

of work. It includes support for the costs of housing, children and childcare, as well as support for disabled people and carers. Various premiums and two tier tax credit disability elements now replaced.

Universal Credit will replace: Income-based Jobseeker’s Allowance: There are no fixed hours thresholds, such as the

16 hours a week rule.

Income-based Employment and Support Allowance

Income Support

Working Tax Credit

Child Tax Credit

Housing Benefit

Carers Test/Element If you and/or your partner care for a disabled person for 35 hours a week

or more, and you are eligible for Universal Credit, you may qualify for the Carer element. The disabled person must be getting one of the following:

Attendance Allowance Constant Attendance Allowance

Disability Living Allowance (at either middle or higher rate care component)

Personal Independence Payment (at either standard or enhanced rate of the daily living component)

The disabled person doesn’t have to be living with you Known also as the carers test and if awarded you will be in the

no work-related requirements group. If you don't qualify for the carer element, you may be able to amend

your Claimant Commitment based on your caring responsibilities. You don't need to be get Carer's Allowance to get the Carer element.

Carer's Allowance will be taken fully into account 

Carers with limited capability for work

There are two Universal Credit elements for people with limited capability for work:

Limited Capability for Work (LCW) element Limited Capability for Work and Work-Related Activity (LCWRA)

element You can't get the Carer element at the same time as one of the above

elements. You will get the higher element. This means that if you are eligible for:

the LCW element and the Carer element - you will get the Carer element only

the LCWRA element and the Carer element - you will get the LCWRA element only

The same applies to each member of a couple except when you are both eligible for the LCWRA element and the Carer element. Only one member of the couple can receive the LCWRA element but the other member will get the Carer element instead

Breaks in careBreaks in care will not normally affect your Universal Credit, although this does depend on the reason for, and the length of, the breaks you

take.Hospital breaks

Hospital breaks are when you, or the person you are looking after, go into hospital and the person you care for still gets Qualifying Benefits as

beforeOther temporary breaks are any breaks that aren't hospital breaks. For example when you are on holiday, or the person you are caring for is in

respite care.How breaks affect Universal Credit

You will no longer get the Carer Element if, in the last 6 months, either of the following applies:

• hospital breaks and other temporary breaks add up to more than 12 weeks

• other temporary breaks add up to more than 4 weeks

Additions to child disability Lower rate: as with CTC (when child on

any rate DLA or dependent young people on any PIP) but paid at less than half of CTC

Higher rate: applies to children or QYP: HRC DLA or HRPIP Daily Tasks – matches current

Pensioner with disabilities Couple – one above p/age one below then UC However, if the older partner gets a disability

benefit, they will be “treated as” limited capability for work element applies where

the older partner receives any rate of DLA or PIP limited capability for work related activity will

apply if that partner gets either of the top rates of PIP Daily Living or DLA Care or either rate of Attendance Allowance.

Still worse off than pension credit.

Adults & Disability ElementsSome people with disabilities may be unable to work and so come under the WCA. Others though will have disabilities, but be working, looking for work or caring for children or people with disabilities.

To claim additional amounts then WRA assessment required.

The two tests measure very different things. The can try and claim under WCA but maybe turned down. Their disability may not be one that limits their work capability. They, alongside those who do pass but only at the lower level will be denied access to the residual help for disability merged into the higher limited capability element.

Workers with Disabilities No equivalent Working Tax Credit

disability element under UC

Example 1 Mr A gets ESA with Support Component

and DLA Middle Rate Care/ Lower Mobility. He lives with his friend.

Benefit or loss?

Example 2 Mrs B is on the same benefit as Mr A

(ESA support group). but now with PIP standard Daily Living/standard Mobility. She lives on her own.

Gain or loss?

Example 3 Mr D also has PIP standard Daily Living/

standard Mobility but, like most ESA claimants, is on the Work Related Activity Component.

Gain or loss?

Example 4 Mr E (on ESA WRAG group) also has PIP

standard Daily Living/Mobility. He is main carer for his son, who gets Middle Rate DLA Care

No recognition for carers with disabilities

Q. How do I make a claim?

You can make a claim for Universal Credit online at www.gov.uk/universalcredit. If you get stuck while you’re making your Universal Credit claim a helpline is available Monday to Friday 8.00am to 6.00pm. Call 0845 600 0723*. A claim online can’t be saved.

If you need further help and cannot make your claim online, you can use local, face to face services. These may be offered through your local Jobcentre or your local council.

Paid monthly & landlord direct

Who can & who can’t To make a claim for Universal Credit you must: • live in a specified postcode area but not be homeless, in supported or temporary

accommodation, nor a homeowner • be single, with no dependent children, a British citizen and aged between 18 years and 60

years and 6 months • be fit for work • not have received a payment of Jobseeker’s Allowance (JSA) or Employment and Support

Allowance (ESA) that ended in the last 2 weeks, except where ESA ended due to a decision that you no longer have limited capability for work

• not be pregnant nor have given birth within the last 15 weeks • not be receiving existing benefits or tax credits, nor awaiting a decision on a claim to them,

nor be appealing against a decision not to award any of those • not be in receipt of Disability Living Allowance (DLA) or Personal Independence Payment (PIP) • have expected take home pay no higher than £270 per month (under 25s) or £330 per month

(25 or over) and not have savings in excess of £6,000 • not have any caring responsibilities • not be self-employed, in education nor have a person acting on your behalf over your claim,

and • have a valid bank account and National Insurance Number.

Date of claim & thereafter The date of claim will be the date Cl

submits online application. 4 assessment period but 5 weeks to payment.

Then: decision letter Phone/text/email to confirm

appointment details Proof required & signing of Claimant

Commitment

What are alternative payment arrangements?

Jobcentre Plus can give you an alternative payment arrangement (APA) if you can't manage monthly payments of Universal Credit (UC) and there's a risk of financial harm to you or your family.

The move to a single monthly household payment will be a significant change to the way most benefits are currently paid so the following alternative payment arrangements will be available to help claimants who need additional support:

Paying housing costs (rent) directly to landlords. Making more frequent than monthly payments. Splitting payment of an award between partners.

Rent to landlord

In order to safeguard the claimant’s home, paying rent direct to the landlord will be the first priority where rent is part of the Universal Credit award.

An awareness of deduction is needed with 20% deducted for rent arrears

Can request 10% or have it reduced by other deductions

Tier One factors – Highly likely / probable need for alternative payment arrangements

Drug / alcohol and / or other addiction problems e.g. gambling Learning difficulties including problems with literacy and/or

numeracy Severe / multiple debt problems In Temporary and / or Supported accommodation Homeless Domestic violence / abuse Mental Health Condition Currently in rent arrears / threat of eviction / repossession Claimant is young either a 16/17 year old and / or a Care leaver Families with multiple and complex needs

Tier Two factors - Less likely / possible No bank account Third party deductions in place (e.g. for fines, utility arrears etc) Claimant is a Refugees / asylum seeker History of rent arrears Previously homeless and / or in supported accommodation Other disability (e.g. physical disability, sensory impairment etc) Claimant has just left prison Claimant has just left hospital Recently bereaved Language skills (e.g. English not spoken as the ‘first language’). Ex Service personnel NEETs - Not in Education, Employment or Training

APA or not? Steven claims Universal Credit. He has severe

learning difficulties and lives in supported accommodation. He is referred for an alternative payment arrangements. It transpires that Pete’s brother, Joe, acts as his appointee and fully manages his brother’s financial affairs.

NO Joe has been looking after his brothers

financial affairs for many years, ever since their parents passed away. He works part time and sees his brother regularly and is deemed capable of managing Pete’s Universal Credit. As a result an alternative payment arrangement is not considered appropriate in this case.

APA or not? Lucy is 26 years old and makes a claim to Universal Credit and

following ‘Personal Budgeting Support’ data gather questioning, it comes to light that she has a drug addiction problem and has no bank account plus a history of debt. She is currently a regular user of cannabis and is not receiving treatment (she says her local support service can only treat class A users at present), she wants treatment and says without it she cannot stop ‘using’.

Yes She is therefore considered for alternative

payment arrangements as risks spending a large proportion of her Universal Credit income on drugs. A decision is made to pay her pay her rent direct to her landlord and to pay her more frequently than monthly. She is referred for treatment and budgeting support services which include the set up of a budgeting (or ‘jam jar’) account. Her circumstances will be reviewed in eight months time.

CLAIMANT COMMITMENT. Condition of entitlement to UC that

claimant/couple accept a claimant commitment which identifies work related commitments.

If either claimant or partner do not accept the claimant commitment UC is not awarded.

Exemption if lack of capacity [require an appointee to make a claim], exceptional circumstances and it would be unreasonable expect to accept [ hospital for weeks, domestic emergency [define] or if JCP closed due to an emergency.

Conditionality. There are four conditionality groups. No work related requirements. Work focused interviews. Work focused interviews and work

preparation. All work related requirements. Key factor check to make sure that the

claimant has been placed in the correct group this is important to avoid sanctions!

Partner over pension credit age who is included in the claim of younger partner.

Main carer for a child adopted in the last 12 months. Pregnant and within 11 weeks before/15 weeks after birth. Under 21 in non advanced education & without parental

support, or in education but eligible for UC & with student income taken into account in calculating UC. [Which students qualify].

Carers [even if do not qualify for CA] if accepted would be unreasonable [definition].

People with limited capability for work related activity. Responsible parent or foster parent of a child under one.

Conditionality. No work related requirements if

Conditionality What are expected hours? Work focused interviews only means 16 hours per week. Those subject to all work related requirements hours will be

specified in the claimant commitment, normally be 35 hours per week.

Can be below 35 hours, if; relevant carer for disabled person/child for whom claimant is a parent but not carer,

Is responsible carer or a responsible foster carer, means either lone parent or as nominated main carer in a couple, then number of hours will be those considered compatible with reasonable prospect of obtaining work.

What is compatible? Child under 13 with normal school hours and this includes travelling to and from school.

Claimants with physical/ mental health , number considered reasonable in light of impairment.

Work availability requirement.

Most be willing to take up paid work/ attend an interview immediately.

Exceptions; Carer for disabled person or for a child & is accepted as

reasonable, take account of need to make alternative caring arrangements, can extend for one month to take up paid work or 48 hours for an interview.

Doing voluntary work and accepted that work availability requirement would be met if available at one weeks notice for paid work/48 hours interview.

Employed and required to give notice, if willing to take up work once notice period completed/interview 48 hours.

Work availability requirement. Can be varied in the in the following circumstances; Caring responsibilities or physical/m/h difficulties may have a

lower expected hours requirement[remember importance of the CC].

Work search/work availability restricted to 90 minutes travelling time from home.

Good work history, of a particular nature,paid at a particular level , up to three months from date of claim or ceasing to earn above his/her earnings threshold, can restrict to same if DM satisfied there is a reasonable prospect of securing work[define].

Physical/ m/h condition that substantially limits, type of work or locations, will not be required to do or take up.

Remember to obtain evidence to support /power of the EO.

Sanctions.

Sanction will be imposed if non compliant with the Claimant Commitment and cannot show a good reason.If more than one sanction is imposed will run consecutively rather than concurrently, will continue to run if UC is reclaimed [less the number of days when benefit was not payment].Fixed sanction will not exceed 3 years. Hardship payments available but need to be paid back.Sanction will not reduce UC award to less than zero.Will cease if no longer subject to work related requirement, or after a year of compliance if working and earning at least threshold for 6 months in that period.

Higher level sanctions. Subject to all work related requirements

who at any time prior to claiming UC give up work, lost pay or failed to take up a job may also be sanctioned , period reduced by the number days between sanction offence and claim for UC.

Who are most likely to be affected by the above?

Medium level sanctions. Those subject to all work requirements,

who fail, without good cause to seek or be available for work.

28 days first failure, 91 days for a subsequent failure within

a year. 16/17 year olds 7 & 14 days within the

year, 40% loss of standard personal allowance.

lower level sanctions. Failure without good reason to undertake specific work search

or work preparation activities or fail to attend or produce the required evidence at a compliance/work focused interview.

Loss of 100% of standard allowance or 50% of standard couple allowance, until the requirement is met, plus a fixed period of 7 days for a first failure[over 18 year olds],14 days fore second lower level offence within a year and 28 days for a subsequent failure within 12 months.

UC claimant who only have to attend work focused interviews and fail to do so without good reason.

A sanction of 40% of SPA[40% standard couple allowance] apply until the interview is attended or the requirement no longer applies.

Good reason.

Not defined in law, refer to case law. DM Guide on what constitutes good reason refers to case law on what is

voluntary, misconduct, good cause and just cause. Facts that would probably have caused to act as the claimant did. Consider the following; DV. M/H condition. Bullying, harassment,[employment]. Disadvantaged,homeless, disability ,dependency, learning difficulties, domestic

emergency, sincere religious conviction, caring responsibilities. Would be significant harm to health or to health & safety of any person,

unreasonable physical/mental stress. Expenses related to travel/childcare may be good reason if unreasonably high

relative to expected pay from employment, if pay at or above NMW will not be taken into account in deciding good reason.

Claimant will need to try and resolve issue before leaving or good reason will not be accepted.

Mandatory reconsiderations.One month from the date on the notice to seek a mandatory reconsideration.This time limit can be extended up to a maximum of 13 months from the date of the decision if three criteria are satisfied;There are exceptional circumstances that have for not having lodged the MR within the standard time limits.There is a reasonable prospect of the MR succeeding.It is in the interest of justice to allow the late MR.

Appeals. If the MR is not successful, one month

from the date on the notice to lodge the appeal.

Late appeal the same as MR.

Budgeting Advance

Budgeting Advance

An advance payment of Universal Credit to help someone buy essential furniture or household equipment, for example.

Budgeting Loan

Being replaced by the Budgeting Advance, a Budgeting Loan is an advance payment of benefit to help someone with essential expenses

Advance payment – different types

Your first payment will be made one calendar month and 7 days after your date of claim and then calendar monthly after that.

If you think you will find it difficult to manage while waiting for this first payment you can ask the DWP for an advance payment. This will be paid back out of your future Universal Credit payments. Must be done within a month of claim if not transferring (claimed QB in past month) or due to a change of Circs.

Advance payment & APA Sam applies for Universal Credit. He has

a number of debts, including rent arrears and so asks the DWP for an advance payment and to be paid twice a month.

Agreed The DWP agree to his request– to ensure

that he does not fall behind with his repayments. It is also agreed to pay his landlord direct and is referred for budgeting support.

They will review his case in 3 months.

No appeal If Jobcentre Plus don’t agree Jobcentre Plus will write or email you giving you its

decision about whether to pay universal credit direct to your landlord or make any other ‘alternative payment arrangements’. This should tell you the reasons for its decision and what you need to do if you disagree with its decision.

You should have one month to write to Jobcentre Plus to ask them to reconsider. However, if they refuse you normally will not have any further right to appeal.

The End Any Questions