department for work and pensions 1 dwp: our reform story spring 2013 mike dann – partnership...
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Department for Work and Pensions1
DWP: Our Reform StorySpring 2013
Mike Dann – Partnership [email protected]
‘Inspiring Independence Through Work’
Department for Work and Pensions2
• The Department for Work and Pension is reforming. Our aim is to help people lift themselves out of poverty and stay out of poverty, through work, saving and support.
• The Government is working to put the nation’s finances on a more sustainable footing, reducing the country’s debt. This does mean making difficult decisions, on tax and spending, but we will ensure that fairness is at the heart of those decisions so that all those most in need are protected.
The Reform Story
Department for Work and Pensions3
• Despite considerable welfare spending, more working age adults live in poverty than ever before
•
“A system that was originally designed to support the poorest in society is now trapping them in the very condition it was supposed to alleviate.” Iain Duncan Smith, Secretary of State for Work and Pensions.
• Our money needs to be targeted more effectively to those who need it most and Our services need to change
• The Welfare Reform Act introduces the most fundamental reforms to the social security system for 60 years.
The Reform Story
Department for Work and Pensions4
Employment Offer
Support for Pensioners
Pensionsand Ageing
Fraud and Error
Appeals ReformBenefit Cap
Disability
Housing Support
UniversalCredit
Social Fund
Welfare that works Employment Offer
Timeline Reform Timeline
April 2013
•Social Fund Reform
•Benefit Cap Roll-out Begins
•Universal Credit Pathfinder
June 2013
Personal Independence Payment (PIP) National Roll-out for all new claims
August 2013
Benefit Cap National Roll-out
October 2013
•PIP Reassessment Starts
•Universal Credit -New Claims
•Appeals Process change
April 2014
Universal Credit – Transfer existing claims
Department for Work and Pensions6
Universal Credit Update Universal Credit
• Universal Credit (UC) replaces six main benefits, sweeping away the complexities of the current system into a simpler, single monthly payment for people in work or out of work.
• UC is formed around a new ‘claimant contract’ which sets out what is expected in return for receiving assistance, taking into account personal circumstances and capability to earn. Those who break the terms of their contract will face tough but fair penalties.
Department for Work and Pensions7
Universal Credit Update Universal Credit
• Universal Credit (UC) will be a self service experience; with claimants applying for and accessing their benefit on-line, on GOV.UK.
• As claimants earn more money; financial support will be withdrawn at a slower rate under UC than is the case with the current system. UC will be paid monthly, in arrears, in line with the vast majority of people working in the UK.
• A single payment to a household; rather than an individual will enable a household to clearly see the effect of their decisions on their overall income, encouraging personal responsibility for budgeting.
Department for Work and Pensions8
Payments are paid to different adults in a household and for various periods
Universal Credit is a single monthly payment to each “household” (Though we will retain the ability to pay more frequently or to split payment in exceptional circs)
Conditionality: some benefit claimants are capable of working but have no obligations to look for work
Universal Credit will personalise conditions according to people’s capability and circumstances
Work incentives can be very low, benefits are reduced to take account of earnings but different benefits have different rules
Universal Credit will ensure that work pays. Financial support will be reduced at a consistent and predictable rate (taper) and people will generally keep a higher proportion of their benefit
The welfare system has more than 30 benefits each with their own rules and criteria
Universal Credit provides a new single system means-tested support for working-age people who are in or out of work
How is Universal Credit different?Current System Universal Credit
Department for Work and Pensions9
Phase 1: starts 29 April 2013
Phase 1 will deliver and test the core service with new claims from single unemployed claimants (no children, can have housing costs -
rent only, other eligibility criteria applies)
Universal Credit
Department for Work and Pensions10
Locations: LA Pilots
WiganPart of AGMA*
DWP District: Greater Manchester East & West
WarringtonNot a full member of AGMA* but has associate member status
DWP District: Greater Manchester Central & Cheshire
TamesidePart of AGMA*
DWP District: Greater Manchester East & West
OldhamPart of AGMA*
DWP District: Greater Manchester East & West
*AGMA – Association of Greater Manchester Authorities
Linked Jobcentres:Ashton-under-Lyne (Tameside)OldhamWarringtonWigan
UC Service Centres:BoltonGlasgow
Universal Credit
Department for Work and Pensions11
Local Authority role in Pathfinder
•
• All Local Authorities in Pathfinder have agreed to provide– Face to face services in line with UC National Service Framework
• Face to face services include:– Claimant support
• Working closely with DWP to get people into work and building on ‘worklessness’ initiatives Non standard services
• Support for vulnerable claimants and those with complex needs
• Personal Budgeting Support
• Support and help to get claimants on-line and keep on-line
Universal Credit
Department for Work and Pensions12
Claimants fall into 6 broad segments:focus will be on “full conditionality” only
Working enough (individual and household)
Working could do more
Not working
Too sick to work right now
Too committed to work right now
Too sick to work
Claimants expected to take action to secure work, more work or better paid work – “full conditionality”
Universal Credit
Department for Work and Pensions13
Cla
iman
ts
Time20132017
Assisted Self Service 1 : Few
Self Service 0 : Many
Supported Service 1 : 1
Claimants will:
• change how they currently interact with DWP
• use the support of friends and family for online access
• have provision to use online capability in 3rd party outlets and Jobcentres
• self serve through telephony
• We and our delivery partners will provide a High Street environment for claimants to access online
• We will provide telephony support to claimants completing online transactions
• We will change the role of DWP agents in telephony and Jobcentres
• We and our delivery partners will give claimants specialist support
• We and our delivery partners will assist self service and support claimants in other channels
• We and our delivery partners will help claimants self serve
Online Self ServiceTelephony Self ServiceAccess to online Self Service provided by friends/family,High street 3rd Parties or Jobcentres
Face to face service provided in 3rd Party facilities, Jobcentres, home visitsTelephony Service
Telephony support for online transactions
High Street Access and support for online service provided - 3rd Parties or Jobcentres
Claimants of DWP will become increasingly self-sufficient and prepared for the labour market, enabled through delivery of self service on every channel
Digital by default – self-service
Department for Work and Pensions14
Department for Work and Pensions15
Department for Work and Pensions16
Localised Claimant Support
Universal Credit
Department for Work and Pensions17
Supporting Vulnerable Customers
• We commissioned a Task Force to:
– identify the requirements of our most vulnerable claimants; and – determine whether UC has sufficiently addressed the full scope of
potential needs to ensure the right claimant experience and outcomes
• ‘Vulnerable claimants’ are those who have the most challenging requirements for UC and the most difficulty in dealing with the demands of our processes at the time when they need to access the service. Vulnerability can be temporary, recurring or more long term.
• Our approach is based on being able to better understand specific needs and in creating services to meet those needs, to encourage greater independence amongst claimants.
Universal Credit
Department for Work and Pensions19
Key Findings
Claimants likely to need most help with the standard journey include:
• Mental health issues
• Learning difficulties
• Drug or alcohol addiction
• Homelessness
A significant proportion of the existing claimants will continue to require:
• Language support / translation services
• Support for claimants with sensory disability requirements i.e. Induction Loops and Text phones
• Housing support for victims of domestic violence
Universal Credit
Department for Work and Pensions20
Coming Soon
Universal Credit Partner Toolkit :
Will include the following sections
• Making a claim
• Claimant Journey
• Quick guides [will include subjects like - online applications, ,family entitlements, budgeting etc]
• Frequently asked questions
• Press articles/releases
Universal Credit
Department for Work and Pensions21
Direct Payment Project
Direct Payment
Department for Work and Pensions22
Direct Payment Demonstration Project
Purpose:• Test the impact of various trigger points and
safeguards on social landlords
• Test safeguards for different groups of people, e.g. trigger points for making payments to landlords, and test budgeting tools for claimants
• Evaluate claimant communication strategy and test landlords’ strategies for maintaining financial viability
Direct Payment
Department for Work and Pensions23
Early Findings
Published on 17 December which showed:
• 6,220 social tenants were paid housing benefit directly
• Rent collection rates stood at 92%
• Across the areas levels of payments collected varied from 88% to 97%
• 316 tenants have been switchback to payments to their landlords either because they had reached the trigger point or early intention
Lord Freud
“Direct payments of benefits will help people to step into the workplace.However we have always been clear that exemptions must be in place alongside the right support for those who need it and the projects are showing us and the housing community the steps that must be taken”
Direct Payment
Department for Work and Pensions24
Benefit Cap Update Benefit Cap
• From 15 April 2013 a cap will be introduced on the total amount of benefit that working-age claimants can receive. The level of the benefit cap will be set with reference to average earnings (after tax and National Insurance) for working families - £500 a week for couples (with or without children) and single parent households, and £350 a week for single adults.
• We are implementing the cap from April 2013, starting in four local authorities in London - Bromley, Croydon, Enfield and Haringey.We plan to implement the Benefit Cap in all other Local Authorities during the summer.
• The benefit cap will apply to the combined income from out-of-work benefits; and other benefits such as Housing Benefit, Child Tax Credit, Child Benefit and Carer’s Allowance.
Department for Work and Pensions25
Benefit Cap Update Benefit Cap
• The following households will be exempt from the benefit cap:
- those entitled to Working Tax Credit.
- all households which include someone receiving a disability-related benefit: (Disability Living Allowance / Attendance Allowance / Personal Independence Payment / Industrial Injuries Benefit / support component of Employment & Support Allowance).
- War widows and widowers and those in receipt of War Disablement Pension
• There will be a ‘grace period’ whereby the benefit cap will not be applied for 39 weeks to those who have been continuously in work for the previous 12 months and have become unemployed.
Department for Work and Pensions27
Benefit Cap - Local Activities Benefit Cap
• Joint working with JCP /Council on identification
• Cross working with agencies and housing associations
• Currently 114 Identified families,
• National JCP approach , letters, jcp interviews and home visits
• There is an online calculator available for claimants to use at www.gov.uk and a benefit cap helpline: 0845 6057064 and textphone: 0845 6088551 (8am-6pm Monday-Friday
Department for Work and Pensions28
Inspiring Independence through Work Employment Offer
Significant changes have been made to the welfare-to-work programmes available to Jobcentre Plus customers,
• Universal Jobmatch, an online job posting and matching service available to all jobseekers, not just those claiming benefits.
• Youth Contract, including the Wage Incentive, a £1 billion programme to get more young people into meaningful employment, training or gain work experience.
• Work Programme, offering greater freedom to tailor support to the needs of each claimant.
• Work Choice, a specialist disability employment programme which was launched in October 2010. Work Choice provides tailored support to help disabled people who face the most complex barriers to employment find, and stay in, work.
Department for Work and Pensions29
Appeals Reform
• The Welfare Reform Act 2012 includes the introduction of changes to the appeals process to ensure more disputes against DWP decisions are resolved without being referred to HMCTS. The Appeals Reform Projects consist of the following key elements:
– Mandatory reconsideration of decisions prior to appeal
– Direct lodgement of appeals with HMCTS
– Time limits for DWP to return appeal responses to HMCTS
• DWP intends to introduce mandatory reconsideration and direct lodgement on the following dates:
– April 2013 for Universal Credit and Personal Independence Payment
– October 2013 for all other DWP-administered benefits and child maintenance cases
Appeals Reform
Department for Work and Pensions31
Employment Offer
Support for Pensioners
Pensionsand Ageing
Fraud and Error
Appeals ReformBenefit Cap
Disability
Housing Support
UniversalCredit
Social Fund
Welfare that works
Thank you for listening
Employment Offer