Latest updates – Universal Credit for local authorities
The Universal Credit Local Support Services Framework, published 11 February 2013, sets out who may need extra support claiming Universal Credit.
25 March 2013 – Universal Credit Partner Toolkit
The new Universal Credit Partner toolkit is now available. This toolkit is designed to inform organisations about Universal Credit and to help explain the changes that Universal Credit will bring.
12 March 2013 - Universal Credit Chief Executive
David Pitchford has started work as the interim Chief Executive for the Universal Credit Programme.
David, Head of the Major Projects Authority in the Cabinet Office, has been appointed to the role following the death of Philip Langsdale at Christmas. He is a highly experienced leader of major projects on a global scale.
The move will help ensure the continued preparation for the early roll-out of Pathfinder in April, the progressive national roll-out from October, and plans for full migration to Universal Credit by 2017.
During the next three months, David's main objective is a clear blueprint and transition plan that will enable the safe and successful completion to Universal Credit by 2017, working closely with local authorities as one of our key delivery partners.
David has a number of set priorities to drive forward the delivery of Universal Credit. These include making sure no stone is left unturned in preparing for the pathfinder, ensuring the right leadership and capabilities are in place in the Programme and ensuring there is a smooth and controlled migration to Universal Credit.
Local authorities will have a crucial role in ensuring Universal Credit is a transformative change for their better. The Programme will continue to work closely with LAs in the design and delivery of Universal Credit, drawing on their skills and expertise to support claimants back into work, for example through accessing on-line services, budgeting support, and support for claimants with complex needs.
12 March 2013 – Universal Credit workshop
On 1 February a Universal Credit workshop took place between DWP and Local Authorities in order to actively involve local authorities in the design of Universal Credit where Local Authorities could be involved. Sixteen Local Authorities from across Great Britain attended.
We highly value the expertise and insight that local authorities can bring to the design of Universal Credit especially around:
- Signposting of claimants
- New claims to Universal Credit
- Change of circumstances for Universal Credit claimants
- Fraud and error in Universal Credit
- Data sharing between Local Authorities and DWP in Universal Credit
- Personal budgeting proposals for claimants.
Other workshops will be conducted shortly
- If you'd like to keep in touch with this work as it develops, please contact: uclocalauthority.liaisonteam@dwp.gsi.gov.uk
14 February 2013 – New Single Fraud Investigation Service
The Single Fraud Investigation Service (SFIS) is a new partnership between DWP, local authorities and Her Majesty's Revenue and Customs (HMRC). Since November 2012, 4 SFIS pilots have been operating in Glasgow, Corby, Wrexham and Hillingdon local authority areas. SFIS will conduct single investigations covering all welfare benefit fraud and aims to rationalise existing procedures and prosecution policies to create a more coherent investigation service that operates in a more efficient and consistent way.
Find out more about SFIS at the SFIS Communications Hub on the Local Government Association's Knowledge Hub. You will need to register with the Knowledge Hub first if you are not already a member. Then go to "Groups" and ask to join the SFIS Communications Hub. We already have a small library of useful documents and frequently asked questions and in the future we hope to open the discussion forum facility.
11 February 2013 – Universal Credit Local Support Services Framework
Ministers have announced the publication of the Universal Credit Local Support Services Framework, the result of careful and intensive working between the DWP and colleagues in the Local Government Association, Convention of Scottish Local Authorities and Welsh Local Government Associations with input from Local Authority representatives.
- Universal Credit Local Support Services Framework (420KB)
- Welsh Universal Credit Local Support Services Framework (248KB)
- Letter to local authority chief executives (31KB)
- Welsh letter to local authority chief executives (62KB)
The framework will be put in place for the introduction of Universal Credit in 2013, to help claimants who may require extra support to access Universal Credit. The framework explains:
- who may need help
- what services they may need
- how these services will be provided through locally developed partnerships.
The framework applies to phase 2 of the Universal Credit programme from October 2013 to 2014. We will refine and update it over the coming months to create a refreshed version for 2014/15. We will use feedback from local authorities and other delivery partners, learning from the 12 local authority led pilots, the 6 demonstration projects and our experience of the pathfinder operating in the North West to inform the refresh. The framework applies to Great Britain as a whole, but as it develops we expect it to reflect any varying needs and conditions regionally and in Scotland and Wales.
We welcome your comments on the framework and how you will respond to it in your area. You can find details of how to provide feedback in the document.
We have also published draft guidance explaining who could be paid by alternative arrangements under Universal Credit.
- Universal Credit alternative payment arrangements cover note (23KB)
- Universal Credit alternative payment arrangements guidance (97KB)
11 December 2012 – New Universal Credit Director Hilary Reynolds writes to local authority chief executives
New Universal Credit Director, Hilary Reynolds, has written to local authority chief executives to introduce herself and share some information and ideas on closer working.
- Hilary Reynolds' letter local authority chief executives (35KB)
- Welsh version – Hilary Reynolds' letter local authority chief executives (33KB)
29 November 2012 – Supported "exempt" accommodation and Universal Credit
Ministers have announced that help towards housing costs for those living in supported “exempt” accommodation will be provided outside Universal Credit. Supported “exempt” accommodation is defined in legislation as:
- a resettlement place
- accommodation provided by a county council, housing association, registered charity or voluntary organisation where that body or person acting on their behalf provides the claimant with care, support or supervision.
We received a significant number of responses to consultations on how to deal with such cases and on the Universal Credit regulations. Ministers have taken account of these responses in reaching this decision and feel it is important that we continue to provide a flexible system to help meet the higher costs often associated with providing this type of accommodation.
In the short term this help will be delivered broadly as now through local authority Housing Benefit teams under existing DWP legislation and funding arrangements. People in supported “exempt” accommodation will still be able to claim and receive Universal Credit but their housing costs will be provided separately.
Those living in supported housing not classed as "exempt" will receive help with their housing costs through Universal Credit. The most common of these will be those whose landlord is a local authority and those housing association tenants where the landlord is not involved in providing their care, support or supervision.
For the longer term we are exploring the feasibility of a localised funding system. This is because local knowledge is essential to help identify this often diverse group, build effective relationships with providers and ensure that resources are targeted effectively at those who need it.
We are not looking to cut costs, but will continue to expect costs to be questioned where they seem unreasonably high. Local knowledge plays a big part in that and helps to ensure that any scrutiny is well directed.
How local authorities can help
In developing the longer term solution we need to identify these cases so that we can move them over to any localised system and confirm and baseline the costs. We will amend the Single Housing Benefit Extract for April 2013 to identify whether the claimant is in supported “exempt” accommodation and if the provider is in the private or social rented sector.
We need local authorities to help us by:
- recording these cases
- applying the exemption from the under occupation provision
- flagging social sector cases in supported “exempt” accommodation as assessments for under-occupation are carried out, if possible.
- For any queries, please contact: housing.benefitenquiries@dwp.gsi.gov.uk
2 November 2012 – Local authority led pilots update
All pilot areas have high level plans in place and are starting to mobilise and launch their projects. The timing of the launches will vary across the areas but the majority will be up and running either before Christmas or shortly after.
The DWP Universal Credit Project is working with the pilots to support the launches and to understand how each of the pilots will evaluate their work and share the learning with the Universal Credit design team and more widely across the local authority community.
2 November 2012 – Direct Payment Demonstration Pilots initial learning
The Direct Payment Demonstration Pilots have shared some of their initial learnings. So far the key lessons for social housing providers include:
- social landlords need to contact and work with tenants early – and they need to have a greater understanding of their tenants and their financial circumstances and ability to budget
- tenants prefer a range of payment options to take control of the budgets including standing orders, payment cards or cash, as well as direct debits
- most tenants prioritise the payment of their rent, fully understanding that non-payment would result in eviction, but some could imagine a situation when their housing benefit could be spent to cover unexpected expenses
- budgeting support needs to recognise that people on low incomes often budget on a fortnightly or weekly basis
- accounts that allow customers to separate several 'pots' of money are likely to be helpful
- close working between local authority Housing Benefit departments and landlords has been crucial for effective implementation.
DWP are working with the pilots to share the learnings with the Universal Credit design team and more widely across the wider stakeholder community, including local authorities, housing associations and support organisations.
22 October 2012 – Engagement with Universal Credit activity
A successful partnership between the Universal Credit Programme and local authorities will be a critical success factor for Universal Credit. A strong commitment on the part of local authorities’ senior leadership and other key audiences will be crucial to realisation of that aim. This document outlines the level of engagement between Local Authorities and the programme.
19 September 2012 – Financial products, supported exempt accommodation and self-employment grace period
Three announcements regarding Universal Credit and the support given to claimants.
Financial products
It was announced that DWP will explore the feasibility of making financial products with budgeting tools available to Universal Credit claimants.
Accounts that provide people with extra budgeting services could help to make sure people’s essential bills are covered – helping them to build up their credit rating and break the cycle of financial exclusion.
DWP is looking for a range of diverse providers to step forward to express an interest in developing new financial products as it works towards the introduction of Universal Credit in October 2013.
Supported exempt accommodation
Having listened to representations on the issue of help towards housing costs for those living in supported accommodation, it has been announced that this will be provided outside Universal Credit. DWP wants to continue to provide a flexible system to help meet the higher costs often associated with providing supported accommodation.
Self-employment grace period
DWP wants to support people setting up new businesses but it also needs to ensure people don’t abuse the system. It has been decided that under the new rules for Universal Credit, DWP will allow one start up period for the self-employed every 5 years.
During a start up period, claimants will not be required to satisfy work-search or availability requirements, thereby giving them time to concentrate on developing their business.
31 August 2012 – Local authority led pilots announced
The local authority led pilot projects that will support people to claim Universal Credit have been named.
Twelve pilots will run from Autumn 2012 to explore how local expertise can support residents under Universal Credit, setting examples for other local authorities across the country.
The pilots are spread across Great Britain and will include help for claimants to build online skills to claim Universal Credit and develop financial management skills.
The twelve areas chosen to run pilots are:
- 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.
Sir Merrick Cockell, Chairman of the Local Government Association, said:
“Universal Credit marks an enormous shift in the way benefits and tax credits are administered and it is vitally important that people receive the right support both during and after the transition.
“Councils are uniquely well placed to provide people with the face-to-face help they may need to navigate the new scheme. The pilot councils will be instrumental in smoothing the changeover for their local residents and will provide invaluable pointers on how the scheme should be rolled out more widely in 2013.”
Further pilot projects are due to be developed after 2015 to set the longer term role for councils in supporting Universal Credit claimants.
More information is available in the press notice, including some examples of what the pilots will cover.
3 August 2012 – Universal Credit Pathfinder service centres
The Department for Work and Pensions has announced that the sites that will provide the telephony and processing services for the Universal Credit Pathfinder will be Bolton and Glasgow Benefit Centres. These, along with other sites delivering telephony and processing services, will become known as Universal Credit service centres.
The Pathfinder will begin in April 2013 in parts of Oldham, Tameside, Warrington and Wigan. It will test Universal Credit with local authorities, employers and claimants before it is introduced across the country from October 2013. For more information about the Pathfinder see the 24 May update.
- Pathfinder and national rollout of Universal Credit (24 May 2012)
The locations of the Pathfinder service centres will not have any direct impact upon local authority staff or claimants.
24 July 2012 – Universal Credit local authority led pilot long list
DWP and the Local Government Association have today named fifteen local authorities in England recommended as potential pilot sites for Universal Credit.
The pilots will focus on delivering the face to face support some people may need to make claims for Universal Credit, including online support, help with budgeting and job searches, reducing fraud and error, and reducing homelessness. From these recommendations, DWP will now make a final selection of those that will go ahead in the autumn
The 15 authorities in England recommended by the LGA are:
- Barnet
- Bath and North East Somerset
- Birmingham
- Hammersmith and Fulham (in consortium with Kensington and Chelsea, Wandsworth and Westminster)
- Leeds
- Lewisham
- Melton
- Newcastle under Lyne
- North Dorset
- Oldham
- Oxford
- Rushcliffe
- A consortium of North Yorkshire authorities led by Scarborough
- West Lindsey
- Wigan.
- Local authority pilot led long-list for Universal Credit – press release
- Prospectus launch for the Universal Credit local authority led pilots (27 April 2012)
- Welsh Local Government Association (WLGA) prospectus
- Convention of Scottish Local Authorities (COSLA) prospectus
- English councils prospectus – published by the Local Government Association in April.
- LA-led pilots (LGA website)
- encouraging claimants to access online support independently
- improving financial independence and managing money
- delivering efficiencies and reducing fraud and error
- reducing homelessness.
- Planning for Welfare Reform from April 2013 (England) (54KB)
- Planning for Welfare Reform from April 2013 (Scotland) (39KB)
- Planning for Welfare Reform from April 2013 (Wales) (38KB)
- DWP District Managers and Area Partnerships Managers by region (79KB)
- Letter from Lord Freud to Sir Merrick Cockell, Chairman of the Local Government Association introducing LA Pilot Activity (Local Government Association website)
- Progress on projects to trial Housing Benefit payments directly to tenants (34KB)
- Localising support for council tax in England: Government's response to the outcome of consultation (Communities and Local Government)
- Managing the build up of claims to Universal Credit – policy briefing note (26KB)
– sets out the next steps for moving claims to Universal Credit.
A separate selection process is underway for local authorities in Wales and Scotland.
24 July 2012 – Universal Credit frequently asked questions
We have published a series of frequently asked questions on the Universal Credit policy page.
10 July 2012 – Transitional Protection
DWP has confirmed that Universal Credit recipients will not see a cash loss as a result of migration to Universal Credit where their circumstances remain the same.
Once Universal Credit is launched, some people in receipt of current benefits will be moved over in a process managed by DWP (with local authority and HMRC support), even though their circumstances haven’t changed. DWP will ensure that this group will not receive less as a result of their move to Universal Credit by providing a cash top up known as Transitional Protection
Other claimants will move to the Universal Credit system as a result of a change of circumstance which makes them eligible for Universal Credit. These claimants will not be entitled to Transitional Protection.
Although the move to Universal Credit will financially benefit many claimants – 2.8 million households stand to receive a higher amount under Universal Credit than they do now – the move to a simpler system will change the level of entitlements for some households. Where a claimant is moved to Universal Credit, their circumstances have remained the same and their Universal Credit award is lower than their current receipt, DWP will provide Transitional Protection to make up the difference.
For more details about how Transitional Protection will work see the Transitional Protection briefing note. Information about how and when claimants of existing benefits will be moved to Universal Credit will be shared as soon as it is known.
15 June 2012 – Consultation on Universal Credit regulations
The Social Security Advisory Committee (SSAC) has begun a public consultation on some of the Universal Credit (UC) regulations. This consultation will take place over the summer, and will help shape the regulations that will be set before Parliament in the autumn to ensure that UC is on track to deliver from 2013.
The Welfare Reform Act 2012 set out the overall framework for the major reform programme that will deliver UC. These regulations provide more detailed information in law about how UC will work, in line with the principles that have already been agreed in the Act.
The draft UC regulations that are part of this consultation have been published on the SSAC and DWP websites and include a number that relate to the treatment of housing costs under UC.
During the summer, DWP Ministers and officials will continue to engage stakeholder organisations to discuss the details of Universal Credit. This will help to ensure the successful implementation of this major change to the welfare system.
The draft regulations are a major step in delivering UC and welfare reform. Opening up these regulations to public consultation will help to ensure that UC works with claimants to help them and their families become more independent. UC is on course to start making a difference to the lives of millions of people from next year.
31 May 2012 – Local authority led pilot prospectuses for Wales and Scotland published
Local authorities in Scotland and Wales are being invited to submit bids to run pilots testing face-to-face support needed for Universal Credit. On 31 May prospectuses were published by the Welsh Local Government Association (WLGA) and Convention of Scottish Local Authorities (COSLA) in partnership with the Department for Work and Pensions. The pilots will focus on the delivery of the face-to-face support people may need to make claims for Universal Credit, providing help to get online and encouraging financial independence. Pilots are expected to start in autumn 2012 ahead of the introduction of Universal Credit in October 2013.
24 May 2012 – Pathfinder and national rollout of Universal Credit
Universal Credit will go live in the Greater Manchester and Cheshire region six months before the national rollout, Work and Pensions Secretary Iain Duncan Smith has announced.
The Pathfinder will take place in Tameside, Oldham, Wigan and Warrington from April 2013. It will enable DWP to test the new simpler, single benefit payment system and its IT with local authorities, employers and claimants in a live environment before Universal Credit is rolled out across the country in October 2013.
Up to 1,500 new claimants are expected to begin receiving Universal Credit each month throughout the Pathfinder, and throughout the initial Pathfinder period about 9,000 households will claim Universal Credit. It will only apply to certain postcodes in the named areas, and those postcodes and the local authority and DWP offices that will be involved will be announced soon. Local authority staff who are affected by the change will receive full guidance in due course.
The way in which Universal Credit will be introduced from October 2013 has also been confirmed. It will begin in seven locations across Great Britain in October 2013, and will then expand to all areas over the following months as Jobseeker’s Allowance is closed to new claims. More details will be made available in the next few months about the scheduling of this expansion, and how existing benefit and credit claimants will move onto Universal Credit.
17 May 2012 – Universal Credit telephony and processing
The following sites have been selected as the first wave of DWP and HMRC telephony and processing sites (Universal Credit service centres) to deliver Universal Credit:
| DWP Benefit Centres | DWP Contact Centres | HMRC |
|---|---|---|
| Birkenhead | Bangor | Blackpool (Ryscar House) |
| Bolton | Bootle |
Merry Hill Contact Centre |
| Canterbury | Derby | |
| Cosham | Dundee | |
| Glasgow | Grimsby | |
| Sunderland | Makerfield | |
| Wolverhampton | Middlesbrough | |
| Wrexham | Paisley |
The location of these sites will not have any direct impact upon local authority staff.
Although local authority processing and telephony sites are not in scope for delivery and processing of Universal Credit from 2013, the DWP and DCLG Permanent Secretaries wrote to local authority Chief Executives in March explaining that local authorities will provide face-to-face support for some Universal Credit claimants from October 2013. DWP is working with local authorities to develop the details around this.
The delivery of Universal Credit in the longer term will be influenced by lessons from early implementation and other key initiatives, such as the LA-led pilots.
Further updates on the design and development of Universal Credit will be published on this site as the details become available.
11 May 2012 – Update on Direct Payment Demonstration Projects
Dunedin Canmore Housing Association in Edinburgh, working in association with The City of Edinburgh Council, has volunteered to participate in the Direct Payment Demonstration Projects.
Five local authority and housing association partnerships were previously named as the successful volunteers to work with DWP on changing the way housing benefit is paid in the social sector. These were Southwark, Oxford, Shropshire, Wakefield and Torfaen.
From June 2012 until June 2013 a small number of tenants in the six volunteer areas will start receiving monthly housing benefit payments, paid directly to them for the first time. This is in preparation for the introduction of Universal Credit from October 2013.
Around 2,000 tenants in each volunteer local authority area are involved. A representative sample of social housing tenants in receipt of Housing Benefit has been selected who are of working age and not currently living in temporary accommodation. Pensioners and people with significant support needs have not been selected and will continue to have their housing costs paid direct to their landlord. Local authorities will contact all selected tenants to offer support with budgeting and money matters.
27 April 2012 – Universal Credit local authority led pilots
DWP and the Local Government Association (LGA) have jointly issued a prospectus calling on local authorities in England to deliver pilots to support residents in preparation for the introduction of Universal Credit in October 2013.
Separate arrangements to develop and take forward similar, local authority led pilots are being developed with the relevant authorities in Wales and Scotland and further details will be published by the end of May.
The pilots, which are expected to start this autumn, will focus on delivering the face to face support people may need to make claims for Universal Credit. They will look at:
Further pilots covering local authorities’ long-term role in the delivery of Universal Credit will be announced next year.
Lord Freud, Minster for Welfare Reform, said:
"Local authorities will have a role in supporting residents to claim Universal Credit and these pilots create an opportunity for councils to be at the forefront of shaping that role working with DWP and other partners."
Councillor Sir Merrick Cockell, Chairman of the LGA, added:
"It is vital that local people are fully supported when these benefit and tax credit changes come into place. Councils have a central role to play in providing face to face assistance and advice in the new welfare system, as they have a strong understanding of local job markets and the needs of their residents."
The prospectus and further information can be found on the LGA website. Local authorities should contact the LGA for more information via their website.
