universal credit work-related requirements
DESCRIPTION
Universal Credit work-related requirements. Jon Shaw June 2013. Universal Credit (UC). Basic conditions aged 18 or over (some exceptions) under pension credit age resident in Great Britain not full-time student (some exceptions) a ccepted a ‘claimant commitment’ Financial conditions - PowerPoint PPT PresentationTRANSCRIPT
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Universal Credit work-related requirements
Jon ShawJune 2013
Universal Credit (UC)Key changes:• Replaces six different
benefits with one payment• Claims normally online• Real-time earnings
information from HMRC• Single monthly household
payment (may be exceptions)
• Rent paid direct to claimant• Overpayments recoverable
Basic conditions• aged 18 or over (some
exceptions)• under pension credit
age• resident in Great Britain• not full-time student
(some exceptions)• accepted a ‘claimant
commitment’Financial conditions • income low enough• capital under £16,000
The UC claimant commitment• Key features:
− Sets out the ‘work-related requirements’ for a particular claimant− Sets out amount and duration of benefit sanctions if
requirements not met− Sets out duty to notify changes of circumstances,
consequences of failure to do so, etc.• Acceptance of the commitment (online or face to face) is
a condition of entitlement, unless:− Claimant lacks capacity (normally if has an appointee)− Exceptional circumstances prevent acceptance
• Both partners in a couple need to accept, or no UC paid (a ‘cooling off’ period may be allowed)
• Can be updated by DWP as required
UC work-related requirementsEach claimant is placed in one of these groups:• No work-related requirements• Work-focused interviews only• Work preparation• All work requirements (default group)
Current system Universal credit systemConditionality largely applies to claimant only
Conditionality applies to both members of a couple
Little in-work conditionality In-work conditionality
Actively seeking work defined by actions, not hours spent
Work search means spending a set number of hours looking for work
Detailed rules on exceptions Exceptions largely discretionary
No work-related requirements – who • Carers (discretionary if don’t get carer element)• ESA support group• Heavily pregnant or recently given birth• Lone parent or main carer of a baby under 1• Over pension credit age• Adopted within the past year• Student with grant/loan income• Young FE student without parental support• Victim of domestic violence
− For 13 weeks, only once a year, must have moved out• Earning above the ‘earnings threshold’:
− Different level for single/couples; and depending on other circumstances (complicated for self-employed people)
Work-focused interviews – who/what• Main carer of a child under 5• Become a main kinship carer in the past year• Main foster carer of a child under 16 (and for 8
weeks after placement ends)• If accepted as reasonable:
− Foster carer of a child over 16 with additional needs− Both foster carers of a child with additional needs
Must ‘participate’ in work-focused interviews when asked. Purpose includes:• Discussing skills, experience, barriers to work• Discussing support to move towards work
Work preparation – who/what• People with limited capability for work (but not in
the support group)Work preparation can include a set amount of time:• doing training• participating in the Work Programme• doing work experience or work placements• developing a business plan• a work-focused health-related assessment• having a skills assessment• improving personal presentationClaimant can also be required to take part in work-focused interviews.
All requirements – who/what• Anyone not in one of the other three groups has
all of the work-related requirements• Includes those in part-time work• This is the default group – everyone is in it until it
is determined that they shouldn’t be
Must meet a ‘work search’ and a ‘work availability’ requirement, and can be asked to prepare for work or take part in a WFI as well. Requirements can be waived in some circumstances
Work search and work availabilityWork availability: • Standard definition of ‘ready and willing to take
up all paid work immediately’Work search:• Taking ‘all reasonable action’ to obtain work, and
can include specific actions• Normally need to search for all full-time work
paying minimum wage within 90 minutes of home
Some flexibilities in regulations if already working, caring responsibilities or health problems
Work Search requirement waived• Attending a court/tribunal or in prison• Outside GB for medical treatment• Partner, child or disabled person cared for has
died within the last 6 months• In drug/alcohol recovery (up to 6 months)• In witness protection (up to 3 months)• If unfit for work (up to 14 days, twice a year)• Discretionary if:
− longer periods of sickness, temporary childcare problems, public duty, work preparation, temp. change of circs.
Sanctions• A sanction can be applied if the claimant fails to meet
work-related requirements, in most cases ‘without good reason’
• The length of a sanction depends on the failure, and which work-related requirements the claimant has
• The amount of a sanction is normally the adult personal allowance, or half the couple rate if one person is sanctioned
• Calculated at a daily rate – eg, £10.20 per day for a single claimant over 25
• Sanctions run one after another and continue if UC ends and is later reclaimed
Hardship payments• Payable only if a claimant over 18 has been
sanctioned• Must comply with work-related requirements now• Must claim hardship payments• Must be unable to meet basic and essential needs
for accommodation, heating, food or hygiene• Paid at 60% of sanctioned amount• Must re-apply every month• Hardship payments are recoverable from UC once
sanction ends – must accept this to get one• Recovery suspended if working over earnings
threshold (ends after 26 weeks)
CPAG publications• New edition of Universal
Credit: What you need to know expected next month
• Welfare Benefits and Tax Credits Handbook redesigned to include information about the universal credit system
• New basic publications about other welfare reforms later in 2013…
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