Local organisations who deliver frontline support play an important role in helping people get ready to move onto Universal Credit.
The forthcoming managed migration of Universal Credit means there is more pressure on support organisations to make sure their customers are prepared for the changes ahead.
Guinness is a nationwide housing association that uses Policy in Practice’s Benefit and Budgeting Calculator to help their customers understand the benefits they may be able to get, and the impact of earnings or other changes of circumstances.
In this webinar we looked at the managed migration pilot and heard about the plans Guinness, one of 5 housing associations taking part, is making.
To find out more visit www.policyinpractice.co.uk, email hello@policyinpractice.co.uk or call 0330 088 9242
3. A team of
professionals
with extensive
knowledge of the
welfare system
who are
passionate about
making social
policy work
We help local
authorities use
their household
level data to
identify
vulnerable
households,
target support
and track their
interventions
We develop
engaging software
that helps people
to increase their
income, reduce
their costs and
helps them to
build their
financial
resilience
4. Today’s speakers
Zoe Charlesworth
Head of Policy
Policy in Practice
Michelle Birley
Customer Support
Manager
The Guinness Group
Nadine Burns
Customer Support Team
Manager
The Guinness Group
Louise Murphy
Policy and Operations
Analyst
Policy in Practice
5. Agenda
• What Universal Credit managed migration is and how will it happen
• How the Guinness Partnership is planning for the managed migration pilot
• Quick look at software that helps
6. 666
Poll: What is your biggest concern about
Universal Credit managed migration?
8. What is “Managed Migration”?
• The move to Universal Credit for claimants who have not “naturally
migrated” by the start date of managed migration
• The start date of managed migration will depend on learning from a pilot
commencing in July 2019 in Harrogate of up to 10,000 claims. The rollout is
likely to start in 2020 (subject to meeting tests and passing of new
regulations in Parliament)
• Completion is hoped for by December 2023
• Who is affected?
• 36% ESA
• 54% tax credits
• 10% other means-tested benefits
• Approximately a third of eventual UC claimants will move through managed
migration (around 2 million households)
• Those in receipt of Severe Disability Premium are protected against natural
migration
9. How will it happen?
The Universal Credit (Managed Migration Pilot and Miscellaneous
Amendments) Regulations 2019
Provides for a pilot and includes provision for:
• Migration notice
• Specified deadline date (at least 3 months from notice)
• Deadline date can be cancelled or extended
• Legacy benefits cancelled following deadline
• Automatic backdating if UC claim made within one month of deadline. If
claim made after one month of deadline, it will be treated as a new UC claim
and transitional protection not awarded
• Two week run-on of ESA, JSA, IS (from July 2020)
• A one-year grace period from the Minimum Income Floor for self-employed
who are managed migrated. From September 2020, this is extended to those
who naturally migrate and those existing UC claimants who become newly
self-employed
10. Transitional Protection
Transitional protection is based on the monthly rate of existing benefits
compared to UC award on the deadline date
Cessation of transitional protection will occur in the following circumstances:
• a sustained (more than three months) earnings drop
• the formation or separation of a couple
• the ending of the Universal Credit award (where this was due to an increase
in earnings and a new claim is made within 4 months of the Universal Credit
award ending, the claimant will have their Transitional Protection re-awarded
as part of their new award of Universal Credit)
Transitional protection will reduce through uprating
Particular concerns regarding the housing element – increases in the housing
element because of an increase in rent will reduce transitional protection
11. SSAC Consultation 2018
The SSAC received a record number of submissions
…”particularly struck by the degree of anxiety that was conveyed to us in the
submissions”
…”it is evident that any weakness within the Universal Credit system will be
brought into greater relief when managed migration gets underway”
Submissions showed particular concerns about:
• People living in unstable accommodation
• People at risk of domestic violence
• People living with disability which impaired engagement / access
• People unable to understand and act on information
• People without fluent English
• People without digital access
• Impact of tax credit overpayments
12. Changes prior to Managed Migration
• Removal of the seven day waiting period at the start of a claim
• Provision of an additional two weeks of Housing Benefit transitional
payments which do not need to be repaid
• A £1000 annual increase in the UC work allowances from April 2019
• An additional £1.5 billion to support those moving to Universal Credit
including additional run-ons
• Advance payments more generous (up to 100% of the claimant’s expected
Universal Credit award) plus an extension of repayment of advance payments
from 6 months to 12 months
• A reduction in the cap for deductions from 40% to 30% to soften the burden
of repayments of debts
• Advances can be repaid over 16 months (Oct 2021)
• An extension in the surplus earnings disregard exception for up to £2500 for
another year from 2019 to 2020
13. Preparation for Managed Migration
The DWP is co-designing the process with claimants, charities, experts and other
stakeholders through webinars and workshops. Much of this will be “tested” through
the Harrogate pilot:
• Includes all case types including “complex” claims
• “Anxiety” of claimants informs the “Who knows me?” approach, ie finding a
personal connection for each claimant going through the process
• DWP estimate that around 50% of claimants have this sort of relationship with
the Jobcentre, HMRC, their local authority, or their social landlord. They will start
with JSA (and then the other organisations later)
• Terminology change: “Move to UC” rather than “Managed Migration”
• Testing of IT readiness for Transitional Protection through the pilot
• Testing pre-population from HMRC “at some point in the pilot”
• Testing engagement in the pilot (DWP don’t expect claims to be terminated)
14. What happens next?
Expansion to full rollout if tests are met:
• IT
• Delivery partners readiness
• Trained staff
• Assumptions and contingencies if assumptions not met
• Claimant understanding
• Claimant support
But depends on new regulations being passed
Delivery partners are preparing independently
• Identification
• Engagement
• Support
15. Universal Credit roadmap
Direct payments to landlord to continue under UC,
if transferring from HB
End of UClive service
DEC2017
No new claims for UClive service after 01/01/18
UCadvances repayment period increases to 12 months
UCadvances increases to 100%of UCaward
JAN 2018
All claims migrated to UC
DEC2023
National Living Wage likely to rise to £8.80 p/hr
Housing benefit to 'run-on' for the first 2 weeks of UC
Payments for temporary accommodation improved
Support for Mortgage Interest (SMI) becomes a loan
National Living Wage set at £7.83 p/hr for over 25
Personal tax allowance up from £11,500 to £11,850
APRIL 2018
www.policyinpractice.co.uk
UNIVERSAL CREDIT ROADMAP
Details subject to change
Details correct at 20 Feb 2019
FEB2018
7day waiting period for UCabolished
2017
2018
2019
2020
2023
2018
2018
Mixed age couples must make new claims for UC
instead of Pension Credit
MAY2019
JULY2019
Self-employed familiies moving to UCwon’t be affected by
minimum income floor for the first 12 months of their claim.
Managed migration pilot will begin (starts in full end 2019)
2019
2019
2019
End of Full Service roll out
JAN 2019
New UCclaims for households with 2+
children
FEB2019
APRIL2019
NLW will increase to £8.21p/hr for over 25s
Personal tax allowance will increase to £12,500
Higher rate tax threshold will increase to £50,000
UCWork Allowances will increase by £1,000/year.
2019
APRIL 2020
17. <Insert title using Ariel 26pt>
<Insert date using Arial 18pt>
Planning for Universal Credit
Migration
Michelle Birley - Customer Support Manager
Nadine Burns - Customer Support Team Manager
18. The Guinness Partnership
Top 10 local
authorities
Homes
Cheshire East 5,428
Milton Keynes 5,203
Havant 3,896
Manchester 3,847
Sheffield 2,378
Rochdale 2,110
Stockport 1,680
Hackney 1,652
Oldham 1,355
Gloucester 1,231
North: 32,035 homes
South: 18,619 homes
West: 15,521 homes
170+ LAs / 650+ Job Centres
19. Universal Credit at Guinness
• Around 8,500 claimants
• Around 750 new claims per month
• 11% arrears
• 26 weeks to stabilise
• Average 52 weeks to settle
• 9 weeks for payment
• Landlord Portal
• Managing UC is resource heavy
20. • Around 1,000 homes in Harrogate
• 388 customers already in receipt of UC
• 210 customers on HB
• Self Payers – high employment – not just
housing costs
• DWP ‘Who knows you best’ model
Planning for Migration
21. • Payment analysis
• Migration tracker
• ‘Untidy tenancies’
• APA versus Direct Debit?
• Get to know our UC Project Team
• Stakeholder meetings
• Targeted Communications – benefit claimants,
self payers and homeowners
• Planned migration versus natural migration
22. Using the PiP budgeting calculator
Since August 2017 to date
• We have created 53,766 new cases!
• There are now 185 staff members who can access the tool across
three departments. Lettings, Customer Accounts and Customer
Support
Helping us to work together for new customers
Lettings carry out over 100 Affordability Assessments a week to make sure
customers can afford the property they are moving into.
The complete calculations are passed to our Customer Support Team that
identify errors with benefits or identify ways to maximise income.
When the tenant moves in the Customer Account Team have the information
if the customer goes into arrears helping us to have informed conversations
26. How we’re preparing for managed
migration 1/
Add transitional protection into the results page
27. How we’re preparing for managed
migration 2/
Identify changes of circumstances which will trigger movement onto Universal
Credit (e.g. increasing working hours above 16 hours per week)
28. Help shape the future of the Benefit
and Budgeting calculator
• Get in touch: helpdesk@policyinpractice.co.uk
• Join our next user group on Thursday 25 July to help us steer the calculator’s
development roadmap
• Register here: https://www.eventbrite.co.uk/e/benefit-and-budgeting-
calculator-steering-group-registration-56831148495
29. 292929
Poll: Do you intend to engage with your
customers to support them with managed
migration?
31. Next steps
Download Guinness case study
Download Benefit and Budgeting Calculator flyer
Download the Universal Credit Roadmap
Follow up email with this recording and slides, with links
Short 5 question survey now:
• We value your feedback
• Ask questions or clarifications
• Request a more in depth look at our Benefit and Budgeting Calculator
• Auto sign up to our next webinar: How Croydon Council is using data to deliver better
outcomes on Wed 12 June at 10:30
What is your biggest concern about Universal Credit managed migration?
People are at risk of dropping out of the benefit system altogether
More people will move into problem debt
People will not receive the support they need
Transitional protection is not generous enough
Overview of where our stock is
The context in which we work
Large northern footprint
Stock in some of the top 1% most deprived communities
Challenge of working across lareg number of LA’s and job centres
Reduced arrears by 9%
Arrears peak at week 26 and start to reduce
Still significantly higher than Housing Benefit
More claimants and stabilising arrears
Do you intend to engage with your customers to support them with managed migration?
Yes, we’re already making plans
Yes, once we see the results of the pilot
No, we’ll leave it to DWP
I don’t know