Regulator De-Registers Housing Association Previously Ruled Non-Compliant

A housing association sued by a London council for allegedly selling affordable properties on the open market has been de-registered by the Regulator of Social Housing (RSH) due to its lack of social housing properties. According to the RSH’s 2019 Statistical Data Return, Pathfinder did not have a single social housing unit under its ownership or management. The RSH does not allow organisations without stewardship over any social housing to retain RP status. Read more on Inside Housing.

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Universal Credit- Parliamentary Written Answer

Rachel Reeves: To ask the Secretary of State for Work and Pensions, whether local authorities and voluntary sector partners will receive the level of additional funding and support from his Department for the introduction of universal credit that was available to pathfinders.

Mr Mark Harper: The expansion of Universal Credit during 2015 will allow us to build a secure platform for the introduction of Universal Support by mobilising local partnership agreements.To ensure the right integrated local foundations are established for expansion the Department will put in place Delivery Partnership Agreements (DPA) to make available funded support for those who need extra help.

Official: 16% of 'Universal Credit Renters' In Arrears after Three Months

Sixteen percent of universal credit (UC) claimants who rent a property found themselves in arrears after three months of claiming the new benefit, research has shown. The figure was revealed by the DWP in its universal credit 'Pathfinder Evaluation' report.  The report focuses on the UC claimant experience in the pathfinder areas where initial eligibility criteria has focused on single, unemployed, non-home owning claimants without any children.  At the three month stage, the report reveals that 16% of 'UC renters' were in arrears, reducing to 12% at six months.  Download the report from the DWP website.

Whither Universal Credit?

In a recent speech, the Secretary of State for Work and Pensions, Ian Duncan-Smith, insisted that UC implementation was proceeding according to the timetable set out in December 2013. However, this timetable is extremely light on detail.  The 10 pathfinder areas currently beginning to accept claims from couples are expected to add new claims from families in the autumn.  Then "once those extensions have been tested, Universal Credit is expected to become available across more areas in the North West of England." No indication is given as when exactly this might happen. "During 2016" the December 2013 statement continues, "current assumptions are that Universal Credit will be widely available across Great Britain and during 2016 and 2017, the majority of all legacy cases will be moved over to the new scheme." However, detailed plans are not currently available and DWP and HMRC continue work on their schedules to widen the delivery of Universal Credit up to the end of 2017.  Read more on the ARCH website.

Uncertainty over How Benefit Fraud Risk Will Be Managed

It remains uncertain how DWP will manage the housing costs element of Universal Credit without increased risks of fraud and error, warns the Work and Pensions Committee report. The Government has stated that an IT system (the Integrated Risk and Intelligence Service (IRIS)) will allow it to cross-check data and provide similar safeguards against fraudulent claims under Universal Credit as are currently operated by local authorities within the Housing Benefit system.  However, last year the National Audit Office (NAO) found that IRIS was "missing" from the UC Pathfinders, and it remains unclear how or when DWP will achieve automated access to the range of property data currently available to local authorities.  The Committee concludes that such a system will need to be fully developed and tested before national implementation of Universal Credit commences. Read more on the Parliament website.

IDS Ties Himself into Universal Knots over Welfare Reform

Will Universal Credit ever become universal and will the lowest paid still face an effective tax rate of a sometimes outrageous 76 per cent? Iain Duncan Smith took a grilling over his plans for welfare reform on the Sunday Politics, but didn’t give a clear answer to either of these questions regarding his reforms. Firstly, on the progress of implementing Universal Credit, he claimed that ‘Universal Credit is already rolling out and the IT is working’, despite just 6,000 people currently on the ‘Pathfinder’ stage. In his initial plans, a million people claiming six existing working-age benefits were due to be on the Pathfinder stage by April 2014. IDS said it was his decision to slow down the roll out. Read more on the Spectator 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.

Universal Credit – Parliamentary Written Answer

Rachel Reeves: To ask the Secretary of State for Work and Pensions pursuant to his written statement of 5 December 2013, Official Report, columns 65-6WS, on universal credit, what budget he has allocated to the new digital service for universal credit. 

Esther McVey: Costs for the future development of the digital service remain subject to on-going commercial discussions.

Rachel Reeves: To ask the Secretary of State for Work and Pensions how much has been spent on the existing universal credit pathfinder sites. 

Esther McVey: The most recent estimate of the cost of existing universal credit pathfinder sites is set out in the NAO report Universal Credit: Early progress, HC 621, published on 5 September 2013.

Rachel Reeves: To ask the Secretary of State for Work and Pensions how much the freezing of universal credit work allowances will save.

Esther McVey: Disregards in existing income based benefits are generally not uprated year on year. The £5 earnings disregard in Income Support has been at this level for at least 25 years. In universal credit, new work allowances will improve financial work incentives for many people. For example, in 2018-19, the work allowance for a single person over 25, without children, is projected to be £25.60 per week as compared to the current JSA disregard of £5 per week (2013-14 prices). The work allowance rates will be fixed for the first three years, to uprate them by 1% for those three years would lead to an additional cost in the region of £300 million in 2018-19 (2013-14 prices).

DWP Ministers to Decide Whether to Scrap All of the £300m Universal Credit IT

Ministers at the DWP are to decide this month whether to immediately scrap all of the £300m Universal Credit (UC) IT systems and start again from scratch. Computer Weekly has learned that a review by UC director general Howard Shiplee will recommend two options for the future of the IT developed so far, which go even further than previous reports have suggested. One option would mean scrapping all the work done so far, thereby admitting it is not fit for purpose, and bringing most of the development of new IT systems in-house under the control of the Government Digital Service (GDS). Option two would involve continuing to use some of the existing IT to support the current Pathfinder pilot projects, but developing new systems for the full roll-out – effectively delaying any decision to throw away all the work completed so far. Read more on the Computer Weekly website.

Experimental Universal Credit Statistics

The DWP has published a set of experimental Universal Credit pathfinder statistics from April 2013 to 30 Sept 2013. The figures contain the first release of data from the Universal Credit Pathfinder offices on the benefit's starters and caseload to September 30th 2013. These have been developed and released in accordance with the Code of Practice for statistics and its supporting principles. Access the statistics on the DWP website.

Universal Credit Rollout

Universal Credit went live in Hammersmith on 28 October and will roll out to Rugby and Inverness on 25 November. These areas will take claims from the same claimant groups as the pathfinder areas in the north west.  It is believed that Universal Credit will roll out to Bath and Harrogate on 24 February 2014, and Shotton will follow in March.  Read more on the NHF website.

Ministers to Decide Whether To Scrap Universal Credit IT

DWP ministers are to decide whether to immediately scrap all of the £300m Universal Credit IT systems and start again from scratch. There are two options;

One option would mean scrapping all the work done so far, thereby admitting it is not fit for purpose, and bringing most of the development of new IT systems in-house under the control of the Government Digital Service (GDS).

Option two would involve continuing to use some of the existing IT to support the current Pathfinder pilot projects, but developing new systems for the full roll-out – effectively delaying any decision to throw away all the work completed so far.

Whichever option is chosen, sources suggest it is likely that all the existing IT work will eventually be scrapped. Read more on the Computer Weekly website.

Landlords Slam Welfare Pilots

Landlords in the universal credit pathfinder areas are complaining of poor communication from the DWP.  The policy has been trialled for new claimants with simple claims in Tameside since April and in Wigan, Warrington and Oldham since July. The results have not been released. Several landlords in the pathfinder areas have voiced concerns that they have found communication with the DWP difficult and have had problems persuading the department to switch the housing costs part of universal credit for tenants in arrears to the landlord. A spokesperson for the DWP said: ‘The pathfinders ran early to test many elements - so they do not reflect how universal credit will be in practice.’ Read more on Inside Housing.

Universal Credit: Where Are We Now?

For the last two years, October 2013 has been billed as the day when Universal Credit really takes off.  The plan was that between next month and April 2015 no fewer than 4.5 million households would be receiving UC.  Following a ‘resetting of the timetable’ the number of people claiming that benefit during the same period is expected to be fewer than 20,000. The Government has stated publicly that UC is still being rolled-out nationwide from October. That’s stretching the credibility of what’s actually happening. Basically, six new Jobcentres are getting UC between October and April, to join the four which already administer it.  However, even in these ‘Pathfinder”’ areas it will be almost exclusively new single, childless job seeking claimants who will be added to the system.  Read more on the Homeless Link website.

Universal Credit Pilot Goes Live

The government's Universal Credit pathfinder got off to a slow start in Ashton-under-Lyne, where single childless jobseekers with straightforward circumstances newly claiming benefits will receive the new benefit. Around 300 claims are expected in the first month.  To coincide with the launch of the pathfinder, the DWP have published a housing benefit circular on how changes of circumstances involving Universal Credit claimants will interact with the housing benefit system (for instance if a Universal Credit claimant becomes part of a couple with someone claiming housing benefit). The guidance highlights the complexity that will accompany the transition to the new system and the scope for unforseeable housing benefit overpayments, not to mention administrative error and claimant confusion. The circular states that tenants from the pathfinder with over two months rent arrears will be switched to direct rent payment automatically if referred by their landlord.  Download a copy of the circular from the DWP website.

Universal Credit Test Launch Delayed

The Government’s “flagship” Universal Credit Pathfinder was due to launch in 4 areas (Ashton-under-Lyne, Oldham, Wigan and Warrington) on April 29th.

However, just before Easter, DWP announced a delay in three of the pathfinder areas until July so that Ashton-under-Lyne will be the first Jobcentre to accept claims for Universal Credit from 29 April. The pathfinder only covers new claims from jobseekers - so it will only apply to people with no live Jobseekers Allowance or Universal Credit claim. However, it will include the Housing Element of Universal Credit for new jobseeking claimants who wish to apply for help with housing costs.  Read more on the Homeless Link website.

Twelve Councils Selected As Universal Credit Pilots

The government has announced 12 local authority-led pilot schemes that will trial its flagship welfare reform policy, universal credit.  From this autumn the areas, which cover England, Scotland and Wales, will assess how claimants and officials will adapt to the new system once implementation begins in October 2013.  The 12 pilot authorities

    Bath and North East Somerset Council

    Birmingham City Council

    Caerphilly County Borough Council

    Dumfries and Galloway Council

    London Borough of Lewisham

    Melton and Rushcliffe Borough Councils (as a partnership)

    Newport City Council

    North Dorset District Council

    North Lanarkshire Council

    Oxford City Council

    West Dunbartonshire Council

    West Lindsey District Council

Two further pilots by Oldham Council and Wigan Council will be run as part of the pathfinder preparations.  Read more on Inside Housing.

Universal Credit – Parliamentary Written Answer

Stephen Timms: To ask the Secretary of State for Work and Pensions with reference to the section on universal credit in his Department's 2011 business plan, for what reasons the aim 'Launch pilot pathfinder in advance of national rollout' has been changed to 'launch pathfinder in advance of national rollout', and the completion date changed from March to October 2013; and what the implications are of this change for the pathfinder.

Steve Webb: It is the Department's intention to run a staged pathfinder ahead of the national launch of universal credit. This will trial the process with claimants in a specific location, and then we will move to a gradual national roll-out from October 2013 over a four year period, which is entirely appropriate for such far-reaching changes. The pathfinder is not a “pilot” because this is real implementation for a specific group of claimants, and will start to run from April 2013 in the Manchester area. From October 2013 we will begin to take new claims to universal credit from unemployed claimants across every region in Great Britain. This will build up from April 2014 as we phase out new claims to employment and support allowance, income support and housing benefit.

Early Roll Out Of Universal Credit

The new Universal Credit - which will replace six income-related benefits from next year - will go live in the Greater Manchester and Cheshire region in April 2013, six months before the national roll-out.  The early roll-out is expected to see up to 1,500 new Universal Credit claimants coming on stream across four Pathfinder areas – Tameside, Oldham, Wigan and Warrington - each month.  It will test the new single benefit payment system - which will be paid monthly and directly to claimants - with local authorities, employers and claimants in a live environment before Universal Credit is rolled out across the country in October 2013. Work will continue over the coming months to ensure that jobcentres, local authorities and employers in the Greater Manchester and Cheshire region are geared up to support the new service ahead of the early roll out in April.  Ministers have also confirmed that Universal Credit will be introduced across Britain, starting on a small scale in every region from October 2013 and building up capacity to April 2014, when all new claims to the current benefits and credits will be entirely phased out.  Read more on the DWP website.

DWP Chooses Partners for Universal Credit Pathfinder

The Department for Work and Pensions (DWP) has chosen partners for its Universal Credit pathfinder which will road test the system "end-to-end" six months before it comes in for real.  Welfare reform minister Lord Freud said: "We are looking to announce a pathfinder which will start in April. The pathfinder gives us six months run in to really understand how Universal Credit works - all the linkages and how support will be organised."  He said the Government had "chosen partners for it" and it would be focused in a specific area of the country. "It's a big test of the whole system end-to-end," he added.  The partners are expected to be announced publicly this month.  Read more on 24dash.