Agenda item

Recognising the significant tasks involved in implementing Universal Credit, the Board previously requested an update on universal credit once implemented and live. Members are asked to note the verbal update provided at the meeting and discuss any points which they wish to raise with the officer in attendance.

JG introduced Paul Harris, Income Manager for Housing Leeds, to update the board about the current situation regarding Universal Credit.

PH explained that the Universal Credit system was launched in Leeds on the 10th of October 2018, and is applicable to anyone of working age making a new claim which would cover any of the previous six legacy benefits; Income-based Jobseekers Allowance, Income Related Employment and Support Allowance, Income Support, Working Tax Credit, Child Tax Credit, and Housing Benefit.

Any tenant in receipt of one of the legacy benefits before the 10th of October will continue to receive the same benefit until they make a new claim or are eventually transferred to the Universal Credit system.

PH explained that Leeds City Council have signed up to be a trusted partner with the Department of Work and Pensions, allowing council staff to access the landlord portal and see who has made an application for Universal Credit and to verify their rent and tenancy details. If an application is made by someone who is heavily in arrears or is vulnerable, LCC can apply for an Alternative Payment Arrangement (APA) to be put in place, allowing the housing element of their payment to be paid directly to the council rather than the tenant just as the housing benefit system does. Managed payments can also be set up for those who might be unable to pay their rent regardless of whether they have arrears, that will pay their housing element and up to 20% from their monthly allowance. This has the potential to be much higher than the current rate of payment so care must be taken to ensure this is the correct route, and whilst the APA cannot be appealed, the percentage taken from their payments can be reduced.

PH told the board that there are 15 Enhanced Income Officers to support applications within each housing office. When a new claim is received, an officer will contact the applicant within 5 days of the claim and ensure that they have enough money to live on until the payment date just over a month after the initial claim. Support and guidance will be offered to help applicants that need it. The month following the date of the claim is known as the assessment period, following which the first payment is made 7 days later. It is possible to claim for an advance on payment from the first day of a claim, however the amount borrowed must be paid back, deducted from future payments spread over the subsequent 12 months. Two of the Enhanced Income Officers have been seconded to work with the DWP, allowing for a mutual exchange and understanding of working processes. The officers will work with the seven job centres across Leeds, with further support available from contact centres, libraries, and the four hubs which have a specialist support officer. From the 1st of April, the same support service paid for by the DWP will be paid instead to Citizens Advice, however the same level of support offered by Housing Leeds will remain available.

A database of UC claims has been developed to record number of claims and any rent owed or arrears. Based on these details, contact will be made from the Enhanced Income Officers to engage with the tenants and be offered one of three levels of support:

•  Advice and guidance – for those that can manage their journal and do not require much help

•  Standard – For those who may need a moderate level of support

•  Enhanced – For those who are vulnerable or that would not be able to manage their claim independently

Those who fall outside of even the highest level of help can be referred to the DWP service centre to handle their claim. Each applicant has their own individual journal and all documents are uploaded online. It is up to the claimant to ensure all necessary documents are uploaded and correct and to inform of any changes in their circumstances as this can affect their payments. A breakdown of the Universal Credit payment can be viewed once it is received, looking similar to a wage slip, with the total figure shown on top and deductions shown below. Claimants are assigned a work coach where applicable to help them find work. If council tax support is required it must be made as a separate claim made at the same time as the original application.

From the 10th of October up to the present meeting there have been 4,113 claims verified, with new claims being made continuously. It is estimated that by the end of the year there could be around 10,000 individual claims, which includes those that have been migrated from their existing benefits claim. Between 2019 and 2023 those who were receiving benefits but have not made a new claim will be migrated over to Universal Credit, though by 2023 there should be relatively few such cases. The figures reflect how many claims have been made, however it is impossible to know when somebody stops claiming unless the council is directly informed by the tenant.

From the 10th of October to the 31st of January there were 2,815 verified cases of which 815 claims were offered advice and guidance, 1,775 were standard cases, 187 were offered enhanced support, and 38 applicants were unable to be contacted or refused any engagement at all.

Up to the 31st of January 2019 the average amount of arrears held by a new claimant is £358, with the average increase in arrears caused as a direct result of Universal Credit is £68 per account. The total arrears increase because of Universal Credit across all applications is £192,720. 727 APAs have been put in place, with 28 referrals to a food bank and 28 receiving fuel support.

PH handed out some information leaflets which are given or are available to those making a new Universal Credit claim, and opened the floor to questions. JG questioned how Universal credit might impact those who are moving in and out of work, such as those on temporary contracts. PH answered that a new claim would have to be made when the person is not in employment and then the DWP would stop the payments when they were back in work, however the council would only be made aware of this is if they are told directly by the claimant or if the rent falls into arrears. A new claims would be required each time a person is out of work for any reason as long as they were earning over the minimum threshold from that period of employment, otherwise claims can be continued up to six months following. PH further clarified in response to a question from SI that the payments will always be made in arrears, almost like working a month in hand.

JG asked what the criteria is for an APA to be applied to a tenant. PH answered that if the tenant is identified to be vulnerable by support staff - including those with drug and alcohol dependency or those suffering from mental illness - or if they have rent arrears of 8 weeks or more an APA can be applied for. Those who are on Universal Credit should not be taken to court for non-payment of rent given the month long wait for payment. Similarly from the date of the claim to the date of payment tenants will not be taken to court or have further action taken to retrieve any more rent, as the priority is to keep tenants in their properties rather than forcing them to move out.

JG asked if the DWP were paying for LCC staff for their support. PH confirmed that currently the council claim money from the DWP for the support provided, however after the 1st of April the contract will be given to citizens advice, although council staff will still be there to support claims as they were already doing. JG asked if there is a chance that the support contract could be offered to another company after the initial year, PH replied that it is, but it is not possible to know any details at this stage, and reiterated that the council are doing the best they can to provide uninterrupted support.

JG asked if information is still kept private between the DWP, LCC, and Citizen’s Advice now that GDPR regulates how data is processed. PH clarified that personal data is kept completely private on the tenant’s portal and only those with a login can see that information, unless permission is specifically granted to share that data. Data also cannot be shared over the phone unless specifically permitted by the claimant. Housing Leeds will soon be utilising tablets to allow officers to meet with applicants in their homes to submit queries to the DWP.

JG thanked PH for his attendance, and suggested he may be invited back for another update as Universal Credit continues to be implemented.