Providers And Tenants Short-Changed Over UC

An exchange of correspondence with the Secretary of State of Work and Pensions, councils and other housing bodies has exposed the short-changing of claimants and social landlords alike by the way DWP calculates Universal Credit (UC) payments and awards. With 52 weeks and one day in a ‘common’ year, and 52 weeks and two days in a leap year, claimants are underpaid by one or two days each year accordingly. The resultant misunderstanding and confusion cover a serious issue for housing associations and councils already struggling to fulfil legal duties and obligations to their residents. Read more on 24housing.

https://www.24housing.co.uk/news/providers-and-tenants-short-changed-over-universal-credit-with-dwp-unable-to-count-days-in-a-year/

NAO To Re-Assess Universal Credit Roll-Out

The roll-out of Universal Credit (UC) is getting a once-over – for a third time. The National Audit Office (NAO) confirmed it is to undertake another assessment of the roll-out plan after two previous reports found poor performance on delivery of an ‘over ambitious’ programme. The new NAO study will examine whether the DWP is on course to deliver UC in accordance with its plans, assessing whether there are early signs that UC is delivering its objectives, and what impact it is having both on claimants and local stakeholders. Two previous NAO reports – in 2013 and 2014 – identified key areas of poor performance hindering progress. Read more on 24housing.

Hardship Payments Available Immediately To Homeless JSA Claimants

From October 2017, Jobseeker’s Allowance (JSA) claimants who are homeless will have immediate access to hardship payments if their benefit is reduced because of a sanction. Universal Credit claimants who are homeless and have received a sanction already have immediate access to hardship payments. However, JSA claimants currently have to wait two weeks. The regulations will cover eligible claimants who are homeless, suffering from a mental impairment, including a mental health condition, and their partners. People who are pregnant, lone parents, and people with long term physical health conditions can already access hardship payments immediately. Read more on Homeless Link.

Social Tenants Who Claim Benefits Are Worried About Future Welfare Changes

Worryingly, over two-thirds (69%) of claimants living in social housing said they would feel more stressed about their financial situation if their benefits were to be cut or reduced, whilst nearly two in three (63%) fear they would have to cut back on food. Furthermore, almost three-fifths (58%) are concerned they may get into debt. Claimants also expressed uncertainty over Universal Credit. Over two-fifths (41%) said they feel unsure about this new benefit because of negative stories they’ve heard in the media.  Research further demonstrates how crucial welfare support is for those on lower incomes, with 88% of social tenants saying it has had a positive financial impact. Read more on Housingnet.

Universal Credit: Telephone Services – Parliamentary Written Answer

Stephen Timms:  To ask the Secretary of State for Work and Pensions, whether telephones with a direct connection to the universal credit helpline are available to use free of charge in every jobcentre.

Priti Patel: We no longer have customer access phones in Jobcentres. However, should a claimant need to use a telephone in connection with their claim or job search, they will be given access to a phone by their work coach.

Councils 'Frustrated' By Universal Credit

The government’s failure to provide ‘clear information’ about universal credit is causing ‘frustration’ among councils, a government report has said.  Research carried out by Ipsos Mori, on behalf of the DWP, said ‘lack of clarity’ about the timescales for the government’s flagship welfare reform was causing ‘uncertainty’ and ‘preventing certain decisions being made’. According to figures published by the DWP last week, 75,427 people are currently claiming universal credit, of which 68% are not in employment. Download a copy of the report from the DWP website.

Seven-Day Wait Sparks Rent Arrears Fears

The government has confirmed it is pressing ahead with its plan to introduce a seven-day waiting period into its flagship welfare reform, despite warnings from the Social Security Advisory Committee (SSAC) that it should not go ahead. Under the measure, claimants have to wait seven days after their claim before they become entitled to universal credit, in addition to the month and seven days that claimants currently wait between making a claim and receiving their first payment. In consultation responses, which were published in the SSAC’s report alongside the government’s response, landlords expressed concern that the move would increase rent arrears and take its toll on income streams. Download the report from the GovUK website.

New Universal Credit Rules Will Hit 200,000 People

New universal credit rules which could leave 200,000 claimants waiting six months for their benefit have sparked fresh fears over increased tenant rent arrears. The new regulations have been described by social landlords as likely to lead to increased hardship and evictions. Currently, the DWP calculates a claimant’s universal credit monthly. If they earn above a certain threshold in that month, their entitlement is reduced or removed. Under the new rules, the DWP will take into account earnings the claimant has made in the six months previously. This means a person who earns a larger amount in one month, but nothing the following month, may find they are unable to claim universal credit for up to six months. Read more on Inside Housing.

DWP Has Made 'Little Progress on Universal Credit'

Little progress has been made on the roll-out of universal credit with just 0.3% of the eligible population receiving it by October last year, concludes a damning new report. This is despite the £700m spent on the programme since it began in 2010, says the government’s spending watchdog the Public Accounts Committee (PAC). Fewer than 18,000 people were claiming universal credit by October 2014, the committee report explains, out of about seven million expected in the longer term. The watchdog was also critical of the IT infrastructure for the programme, which it says is of ‘particular concern’. It has cost the DWP £344m so far to develop its ‘live’ service systems for claimants. Download the report from the Parliament website.

Welfare Reform - Written Ministerial Statement

The Secretary of State for Work and Pensions (Mr Iain Duncan Smith MP):

Today I can confirm plans for the next stage of implementing Universal Credit to all remaining Jobcentres and Local Authorities as we progress national expansion through 2015/16 and secure delivery of Universal Credit across Great Britain. Universal Credit claims are now taken in over 50 Jobcentres and will be available in nearly 100 Jobcentres by Christmas – more than 1 in 8 across Great Britain. We have increased the groups who can claim Universal Credit to include couples and,from this autumn, we will extend this further to include families in the North West. Now national expansion will progress from February 2015 to all remaining Jobcentres and Local Authorities for new single claimants previously eligible for Jobseekers Allowance, including those with existing Housing Benefit and Tax Credit claims. Read more on the Parliament website.

Middle Income Earners Forced To Rely On Housing Benefit

The housing crisis is hitting middle-income earners at a shocking rate, with those relying on housing benefit to keep their home in spite of being in work rising by 350,000 since 2008 – a rate of over 58,000 a year, the NHF has revealed. New research from the report Broken Market, Broken Dreams, shows that middle-income households earning between £20,000 - £30,000 a year accounted for two thirds of all new housing benefit claims during the last six years, as the struggle to afford a home gets tougher.  With the proportion of households having to claim housing benefit despite being in work doubling to 22 per cent since 2008, the NHF predicts that this figure could rise to one in three in the next five years.  Read more on the NHF website.

Universal Credit (Online Claims) – Parliamentary Written Answer

Mr Love: To ask the Secretary of State for Work and Pensions what arrangements are in place to allow people who do not have access to a computer or the internet to claim universal credit; and if he will make a statement. 

Mr Harper: Support is available through our own jobcentre network where we are introducing 6,000 additional web access devices to improve digital access by autumn. Claimants can be given access to the internet through these devices to make a claim and support will be given where necessary if they are not familiar with digital services. DWP already works in partnership with local authorities who can also provide digital access and digital support for claimants through existing outlets. DWP also provides a telephony service to support those unable to use the digital channel.

6,000 People Claiming Universal Credit

Nearly 6,000 people were claiming the new universal credit benefit payment at the end of April. DWP statistics show the government’s progress in rolling out the new benefit, which combines several benefits into one payment paid direct to households. The DWP figures showed 5,880 people were claiming universal credit in April, while 6,960 claimed at some point between April 2013 and 30 April 2014. Around 60% of the claimants on universal credit are under 25. This reflects the fact that the benefit was initially only being made available to new claimants who are single, non- home-owning, with no children or disabilities. Universal credit is now in some places being rolled out to families. Download the statistics from the DWP website.

Migrants Remain In Hostels to Avoid Losing Housing Benefit

Welfare reforms are causing supported housing to be ‘clogged up’. Efforts to protect European Union migrants from benefit cuts are leading to hostel accommodation and supported housing becoming ‘clogged up’, homelessness experts have warned. Moving European people on from supported housing will in some circumstances result in their housing benefit being cut under welfare reforms that came into effect in April. Migrants from the European Economic Area who are not working are no longer eligible to claim any housing benefit. Migrants who were already claiming before 1 April were given ‘transitional protection’ from the changes until there is a break in their claim, such as a move out of a local authority area or a sanction. Read more on Inside Housing.

Removal of the Spare Room Subsidy: Interim Evaluation Report

As the post immediately below states, the DWP has issued an interim report presents early findings from the evaluation of the Bedroom Tax or as the Coalition call it the Removal of the Spare Room Subsidy (RSRS). The objectives of this project are to evaluate:

·        the preparation and implementation of the policy changes by local  authorities and social landlords

·        the extent of increased mobility within the social housing sector  leading to more effective use of the housing stock

·        the extent to which more people are in work, working increased hours  or earning increased incomes as a result of the RSRS

         the effects of the RSRS, and responses to it, of:

·        claimants

·        landlords

·        local authorities

·        voluntary and statutory organisations and advice services

·        funders lending to social landlords

Download the report from the DWP website.

Tory MP Blasts IDS Plan to Grab Mentally Ill’s Cash As 'Brainless'

Plans to strip benefits from the mentally ill unless they agree to treatment were savaged as "complete tosh” today – by an influential TORY MP. Dr Sarah Wollaston, the chair of the Health Select Committee, said the proposal was “unethical, unworkable nonsense” and “fundamentally flawed”. Iain Duncan Smith is looking at forcing claimants with depression or anxiety to undergo therapy as a condition of getting sickness benefits. But Dr Wollaston said: “Presumably this complete tosh planted by someone who has no understanding of consent to treatment.” Posting on Twitter, she added: “When I say it’s a ‘no brainer’ I mean this unethical, unworkable kite flying comes from someone with no brain.” Read more on the Daily Mirror website.

Universal Credit – Parliamentary Written Answer

Jim Dobbin: To ask the Secretary of State for Work and Pensions what assessment he has made of the effect of universal credit on landlords who have claimants as tenants; what the results were of the direct payment demonstration projects on the effect of paying housing benefit direct to tenants; and if he will reduce the two calendar month rent arrears trigger point before a landlord can go directly to his Department for direct payment. 

Steve Webb: Interim evaluation from the first six months of the Direct Payment Demonstration Projects was published in December 2013 and can be foundat: https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/265257/direct-payment-demo-figures-dec-2013.pdf   

DWP has developed three levels of safeguards for tenants and landlords based on findings from the Direct Payment Demonstration Projects and continuous improvements through our test and learn approach in live service. We make an initial judgment on each claim as to whether the claimant is at risk of default and if so, we can put them on managed payments immediately. In the majority of cases Direct Payments will apply and we have two safeguards in place:

(1) We will review the initial decision if we are advised that arrears have reached the equivalent of one months rent.

(2) We will move to payment to the landlord if we are advised that arrears have reached the equivalent of two months rent.

Universal Credit – Parliamentary Written Answer

Chris Ruane: To ask the Secretary of State for Work and Pensions what sanctions his Department uses on universal credit claimants who refuse a zero hours contract.

Esther McVey: All claimants are expected to accept reasonable offers of employment. If they do not then they may be referred for a sanction. This is the same for UC.

Doomed Universal Credit Scheme Cost £225k PER PERSON

The cost of delivering Iain Duncan Smith’s troubled Universal Credit scheme is £225,000 for each person on it, it has been claimed. The project has already cost the taxpayer £612million and has been dogged by delays and IT blunders. Mr Duncan Smith, the Work and Pensions Secretary, had promised one million people would be receiving their welfare payments under the scheme by April this year. But figures show only 2,720 claimants have been transferred onto the Universal Credit so far - a cost of £225,000 per person. Read more on the Daily Mirror website.

Universal Credit – Parliamentary Oral Answer

Steve Rotheram (Liverpool, Walton) (Lab): What his most recent estimate is of the number of people who will be claiming universal credit by April 2014.

Mr Iain Duncan Smith: Based on caseload projections, we expect more than 6,000 claimants from the pathfinders to be on universal credit in January. Beyond the pathfinder scheme and in the live running of universal credit, we are also rolling out other components, such as the claimant commitment. Jobcentre Plus advisers have agreed around 120,000 JSA claimant commitments, rising by some 30,000 each week. That continues our progressive approach to date, enabling a safe and successful delivery.