Introduction to Universal Credit

Presentation on theme: "Introduction to Universal Credit"— Presentation transcript:

1 Introduction to Universal Credit
Roni Marsh

2 Aims and objectives Aims
To give an overview of claiming Universal Credit Objectives By the end of the course you should be able to understand: What is Universal Credit When you could consider advising someone to claim it How Universal Credit is worked out

3 Claiming Online Access Issues Able to use computer Able to use email
Able to get online Able to see well enough Able to physically use computer Literacy Issues Able to understand enough English to complete application Able to read and write in English Understanding/Health Issues Able to understand an application Able to concentrate long enough to complete application

4 Verifying ID Online Verification Process
Create online Gov.uk Verify account Use Verify account to verify your identity 44% success rate Failure due to lack of passport, driving licence, credit record, moving too often Verification Interview – If the online verification fails then an interview is booked to complete this at the local JCP. If no photo ID JCP will accept a recognised bank card plus other supporting documentation.  Need to get the customer to bring as much as possible.  JCP will also see if have a previous claim history in another benefit and if the customer can answer questions on these, that can also be used to confirm ID

5 About Universal Credit
Replaces: income support income-based jobseeker’s allowance income-related employment & support allowance housing benefit child tax credit and working tax credit Exceptions - severe disability premium - exempt accommodation Backdating

6 Calculating universal credit
Standard allowance Plus Elements Housing costs element childcare element

7 Standard Allowance Standard allowance
single person aged 25 and over (£317.82) single person aged under 25 (£251.77) (including lone parents) couple where one member is aged 25 or over (£498.89) couple with both members aged under 25 (£395.20)

8 Elements Child element Disabled child element Limited capability for work element/work related activity element Carer element Childcare element

9 Housing element Owner occupiers Renters Bedroom Tax
Local Housing Allowance In custody Housing costs contribution for non- dependants = £73.89

10 Benefit Cap £1916 if they are a couple or have children and live in London £1452 if they are a couple or have children and live outside London £1283 if they are a single person and live in London £1118 if they are a single person and live outside London

11 Capital First £6000 ignored no entitlement where £16000
Tariff income of £4.35 per month for every £250 or part thereof

12 Work allowances Minimum disregard (entitled to housing costs element)
Maximum disregard (not entitled to housing costs element) Single or couple without child(ren) £0 Single or couple with child(ren) £287 £503 Single or Couple with Limited Capability for Work Maximum disregard applies to owner occupiers or those who have no liability for rent Minimum disregard applies to those who have rental costs included in their claim

13 Advance Payments Four Types New claim advance
Change of circumstances advance Budgeting advance Migration advance (not yet available) Issues Must ask for advance (although is often offered in practice) Must show need for advance Have to repay over 12 months Advance is only a maximum of 100% of award as assessed by UC staff

14 Maximum Deductions This is a total of 30% of the standard allowance in total but can be exceeded if the DWP decide that it is in the claimant’s best interest to do so. This would be for reasons such as keeping a roof over their head or the gas and electric connected. The standard allowance for single person over 25 is £ % of this is £95.35 This leaves £ per month for living costs.

15 Alternative Payment Arrangements
Twice monthly or more – New statistics also show that the DWP arranged twice monthly or more frequent payments for 20,000 households (2%) Split Payments – Just 20 households on universal credit received a split payment in June 2018, according to the DWP statistics. Housing Element Paid Directly to Landlord – Easy to access for landlords, no arrears needed for social and 2 months of arrears needed for private. 62% of claimants are entitled to support for housing. Of those 55 per cent were social tenants. 6% of the private tenants and 34% of social tenants had their rent paid directly.  

16 Sample Universal Credit Award Letter

17 Maximum Universal Credit
John Smith John Smith & Janet SMITH 83 Lowton Gardens, CROYDON, CR1 2LT

18 Universal Credit Payment
Please note the deductions on this award are from before the rate reduced to a maximum of 30% of standard allowance John Smith

19 Universal Credit Appealing
John Smith & Janet SMITH 83 Lowton Gardens, CROYDON, CR1 2LT John Smith

20 UC Extra Support

21 Calculating Universal Credit 1
A single person aged 25 1 bedroom council flat paying an eligible rent of £500 per month. £ per month contributory ESA (including the work related activity component started on ) Standard rate care element of PIP. No other income or savings

22 Calculating Universal Credit 1
Step 1: calculate maximum Universal Credit Standard allowance £317.82 LCW element £126.11 Housing costs £500.00 Maximum UC £943.93

23 Calculating Universal Credit 1
Step 2: calculate income No earned income £0.00 ESA £442.65 PIP is disregarded £0.00 No savings to take into account £0.00 Total Income £442.65

24 Calculating Universal Credit 1
Step 3: work out UC entitlement ie UC elements minus income Max UC £ minus £ = £501.28 Step 4: check for benefit cap Benefit cap not applicable as receives PIP. UC = £ pcm plus £ ESA (every month) plus £ PIP (every 4 weeks)

25 Calculating Universal Credit 2
A lone parent One child born in 2014 Works 10 hours per week earning £500 net per month Savings of £7,000 Eligible rent £600 per month

26 Calculating Universal Credit 2
Step 1: calculate maximum Universal Credit Standard allowance £ Child element £ Housing element £ Maximum UC: £

27 Calculating Universal Credit 2
Step 1: calculate maximum Universal Credit Standard allowance £ Child element £ Housing element £ Maximum UC: £1,194.90

28 Calculating Universal Credit 2
Step 2: calculate income Earned income £500.00 Work allowance -£287.00 Sub total £213.00 63% of excess earned income £134.19 Capital tariff income -£17.40 (4 x £4.35) Total income: £ (£ £17.40)

29 Calculating Universal Credit 2
Step 3: work out UC entitlement i.e. UC elements minus income Max UC £ – income £ = £1,043.31 Step 4: check for benefit cap UC level is under the cap plus child benefit (every 4 weeks) UC = £1, pcm plus child benefit