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Housing Benefit will in the future form part of the new Universal Credit

Arrangements

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In Scope Out of Scope• Housing Benefit • Council Tax Support (new

scheme of Council Tax discount)

• Income-based Jobseeker’s Allowance

• Disability Living Allowance

• Income-related Employment and Support Allowance

• Contributory Benefits

• Child Tax Credit • State Pension• Working Tax Credits • Child Benefit• Social Fund

(budgeting/alignment)• Pension Credit

• Carer’s Allowance

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Aims of Universal Credit• To encourage people back to work or increase their working

hours• To provide more support for the most vulnerable in society• To apply fairness to those claiming benefit and to the tax

payer • To make work pay• To reduce costs by use of new access channels online claims,

monthly payments and real time processing• Digital by default• To enable interface with the system as a couple as well as an

individual • The implementation of Universal Credit has been delayed, it is

likely that the Pathfinder areas will go first.

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Department of Work and Pensions (DWP)

• Universal Credit will be delivered by the DWP through Job Centres with strong links to Her Majesty's Revenue and Customs (HMRC)

• Localised Claimant Support Framework – the DWP and LGA have now established a Task Group to look at face to face contact. Councils and voluntary groups may be able to bid for this work.

• Government hope that by working together local councils and DWP will be able to reduce costs, facilitate greater partnership working and reduce number of public buildings required

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From April 2013 the following changes will occur:-

• Housing Benefit will be reduced due to under occupancy rules (number of bedrooms) for working age

– 14% cut 1 additional bedroom – 25% cut 2 bedrooms and over• New rules allow one bedroom for:

– Every adult couple (married or unmarried)– Any other adult aged 16 or over– Any two children of the same sex aged under 16– Any two children aged under 10– Any other child, (other than a foster child or child whose main

home is elsewhere)– A carer (or team of carers) who do not live with you but

provide you or your partner with overnight care

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From April 2013 the following changes will occur:-• Overall benefit cap will be linked to average earnings – – £500 pw for couple and lone parent households and – £350 pw for single adult households without children (sums include child benefit) (Note this will be rolled out in London in April and then phased across the Country).

• Shared accommodation rate raised to those aged between 25 - 35• Council Tax Benefit will cease and become Council Tax

Support, also known as ‘discount’. Certain vulnerable groups and people over pensionable age will be protected. Local schemes with discounts will lead to a reduction in benefit for working age claimants. Council Tax will be paid by more residents.

From April 2013 the following changes will occur:-

• Dec 2013 - Universal Credit may be implemented in this area for single people on Jobseekers Allowance.

• Feb 2014 Jobseekers Allowance will close nationally to new claimants and transfer to Universal Credit

• April 2014 Tax Credits will close nationally to new claimants and transfer to Universal Credit

• End of April 2014 Housing Benefit will close nationally to all new claimants

• June 2014 Managed migration of existing claimants to Universal Credit.

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Council Tax Support• Existing Council Tax Benefit Scheme ends April 2013• Government Spending on the new scheme is

reduced by £400m and funding will be paid as a fixed grant

• Local decisions about discounts are being made as part of council tax setting

• National framework for pensioners – no change to the current level of awards

• Local Authorities will be encouraged to continue to support other vulnerable groups

• Only working age claimants will be affected.

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Universal Credit Pilot• We are one of 12 Councils selected to pilot

Universal Credit.

• We will work in a Consortium with Spectrum Housing, CAB, Credit Union, Stour Valley Partnership, Job Club, DCC Adult Services and Adult Learning, Shelter and the Community Partnerships. Job Centre Plus also support the initiative.

• The pilot is focusing on Blandford Old Town and the villages in the Stour Valley and Lydden Vale Wards.

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Blandford Old Town Ward• Almost 25% of the population of Blandford Old Town live in

a household dependant on benefits (housing/council tax benefit).

• There is a high proportion of males aged 15-19 years in the ward – this is likely to be linked to the high proportion of flats or bed-sits in the area.

• Over 41% are categorised as ‘comfortably off’ and 37% as ‘hard pressed’, much higher than the county average.

• Almost 25% of the population of Blandford Old Town are affected by disability and limiting long term illness.

• Population of Blandford Old Town ward are 1st out of 35 most deprived in the district and in the top 20% most deprived in England.

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Stour Valley Ward• Almost 18% of the population in Stour Valley Ward

live in a household dependant on benefits (Housing/Council Tax benefit).

• People aged 20-39 years make up just 15% of the population in Stour Valley ward, the national average is 26.8%.

• Most households are categorised as ‘comfortably off’ (50%), whilst 13% of households were categorised as ‘hard pressed’, higher than the County average.

• 20% of the population of the Stour Valley Ward are affected by disability and limiting long term illness.

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Lydden Vale ward • Over 10% of the population in Lydden Vale live

in households dependant on benefits (Housing and Council Tax)

• People aged 20-39 make up just under 11% of the population in Lydden Vale ward, the national average is 26.8%.

• 15% of the population of Lydden Vale are affected by disability and long term illness.

Analysis of Data

• In the 3 pilot areas we have 403 working age households on housing benefit.

• 140 are known to Social Services as vulnerable.

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NDDC’s Position

• The lack of a local DWP office and full time Job Centre will mean that residents from across North Dorset will come to us for assistance regardless of our pilot status.

• We experienced a similar situation when Pension Credit was introduced and the staff in the Customer Services team spent time assisting residents with their claims because there were no other local access points.

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Objective of the Pilot• Collaborative Work: More integrated approach across public and voluntary agencies, NDDC, Stour Valley Partnership, Spectrum Housing Association, Job Centre Plus, Job Clubs, Credit Union and CAB.• Digital Inclusion: To provide mediated support to online applicants’ benefits and housing via Blandford, Gillingham Hub, home visits etc. to enable customers to develop skills to complete own applications.• Work Focus: To improve links/data exchange between Job Centre Plus and volunteer Job Clubs together with schools to help people into work. To develop better links to businesses for job vacancies.• Financial Independence: To provide money management and welfare benefits advice to those in the targeted areas and provide signpost to Credit Union.

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• The purpose of the pilot is to test:

Collaborative working across the agenciesPromote digital inclusion – mediated support where

neededWork focus – get people back into work Promote financial independence

• The proposal will assist residents with budget and debt management, enable them to set up bank accounts via the credit union, help them get back to work, assist them in completing online forms for benefit and housing and ensure they are claiming the benefit they are entitled to.

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• Spectrum Welfare Advisor will offer welfare advice and signpost new tenants to the credit union and the Job Centre/Job Clubs.

• They will also assist with Benefit claims and Housing applications online.

• The CAB will appoint a welfare advisor to work with those in the private sector, offering similar advice.

• Adult Learning will provide training in money management initially to Spectrum tenants and those in the Gold Band on the Housing Register.

• Adult Social Services will provide support to the most vulnerable

• Shelter will provide debt management advice.

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• NDDC will have increased resources to assist with training and face to face service delivery.

• NDDC will offer support in Blandford and at the Gillingham Hub. Access to public computers will be provided by some of the Community Partnerships, Libraries and Sturminster Town Council.

• Staff and volunteer training will be assisting residents through the transition from Housing Benefit to Universal Credit.

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• Training will include Welfare Reform, Welfare Rights and Money Management.

• The local Job Clubs and Job Centre Plus will work together exchanging information about jobs in a bid to get more local people into work.

• All local employers have been targeted, requesting them to provide the Job Club with details of all vacancies.

• The Consortium will target those in the priority areas but will assist anyone needing help and advice.

• A communication plan has been put in place to ensure we are targeting those most affected.

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• The Government have provided funding for the pilot until August 2013. There is the possibility of NDDC bidding to carry out face-to-face contact through the Integrated Localised Claimant Support Framework.

• We will gather data to enable the pilot to be properly evaluated. This will enable the Government to understand how the changes will affect those in rural communities.

• Many issues will need to be highlighted – lack of broadband, poor transport and low wage economy.

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Dwp.gov.uk/policy/welfare-reform/universal-credit