Zoe Charlesworth, Head of Policy, was invited to present to the National Housing Federation’s Southwest meeting in June to discuss migration to Universal Credit and its implications for providers. Zoe, together with Policy and Operations Intern, Sam Tims, talked about the work our client, The Guinness Group, is doing to plan for their clients moving to Universal Credit, during both natural and managed migration.
With the UC rollout continuing providers are keen to learn from each other about the changes UC brings. One aspect that housing association representatives raised was whether clients should take the DWP’s advance, and therefore receive lower monthly income for a while, in order to cover the five-week wait. The discussion revealed no common view, though providers need tools to support clients with different circumstances in order to provide the right advice and avoid arrears.
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2. Agenda
• What Universal Credit managed migration is and how will it happen
• How the Guinness Partnership is planning for the managed migration pilot
• Quick look at software that is used by the Guinness Partnership to prepare for
managed migration
• Discussion on how rental incomes can be protected as residents move to UC.
3. What is “Managed Migration”?
• The move to Universal Credit for claimants who have not
“naturally migrated” by the start date of managed
migration.
• The start date of managed migration will depend on
learning from a pilot commencing in July 2019 in
Harrogate of up to 10,000 claims. The rollout is likely
to start in 2020 (subject to meeting tests and passing
of new regulations in Parliament).
• Completion is hoped for by December 2023.
• Who is affected?
- 36% ESA
- 54% tax credits
- 10% other means-tested benefits
• Approximately a third of eventual UC claimants will move
through managed migration (around 2 million households)
• Those in receipt of Severe Disability Premium are
protected against natural migration.
4. How will it happen?
The Universal Credit (Managed Migration Pilot and
Miscellaneous Amendments) Regulations 2019
Provides for a pilot and includes provision for:
• Migration notice.
• Specified deadline date (at least 3 months from notice).
• Deadline date can be cancelled or extended.
• Legacy benefits cancelled following deadline.
• Automatic backdating if UC claim made within one month
of deadline. If claim made after one month of deadline,
it will be treated as a new UC claim and transitional
protection not awarded.
• Two week run-on of ESA, JSA, IS (from July 2020).
• A one-year grace period from the Minimum Income Floor
for self-employed who are managed migrated. From
September 2020, this is extended to those who naturally
migrate and those existing UC claimants who become newly
self-employed.
5. Transitional Protection
Transitional protection is based on the monthly rate of
existing benefits compared to UC award on the deadline
date
Cessation of transitional protection will occur in the
following circumstances:
• a sustained (more than three months) earnings drop;
• the formation or separation of a couple;
• the ending of the Universal Credit award (where this was
due to an increase in earnings and a new claim is made
within 4 months of the Universal Credit award ending,
the claimant will have their Transitional Protection re-
awarded as part of their new award of Universal Credit).
Transitional protection will reduce through uprating.
Particular concerns regarding the housing element –
increases in the housing element because of an increase in
rent will reduce transitional protection.
6. SSAC Consultation 2018
The SSAC received a record number of submissions
…”particularly struck by the degree of anxiety that was
conveyed to us in the submissions”
…”it is evident that any weakness within the Universal
Credit system will be brought into greater relief when
managed migration gets underway”.
Submissions showed particular concerns regarding:
• Those living in unstable accommodation
• People at risk of domestic violence
• Those living with disability which impaired engagement/access
• Those unable to understand and act on information
• Those without fluent English
• Those without digital access
• Impact of tax credit overpayments
7. Preparation for Managed
Migration
The DWP is co-designing the process with claimants,
charities, experts and other stakeholders through
webinars and workshops.
Much of this will be “tested” through the Harrogate
pilot:
• Includes all case types including “complex”
claims.
• “Anxiety” of claimants informs the “Who knows me?”
approach, essentially finding a personal
connection for each claimant going through the
process.
• DWP estimate that around 50% of claimants have
this sort of relationship with the Jobcentre,
HMRC, their local authority, or their social
landlord. They will start with JSA (and then the
other organisations later).
8. Preparation for Managed
Migration
• Terminology change: “Move to UC” rather than
“Managed Migration”.
• Testing of IT readiness for Transitional
Protection through the pilot.
• Testing pre-population from HMRC “at some point in
the pilot”.
• Testing engagement in the pilot (DWP do not expect
claims to be terminated).
• Awaiting legislation for start date (now expected
to be 17 July) and to cover SDP (they are deciding
whether to include or exclude from pilot).
• Comparison for transitional protection is at the
midnight before the claim. The comparison is
against what should be received they should get
rather than what they actually get.
9. The Pilot – initial
preparation
• Initial preparation by DWP has shown HMRC and HB hold
conflicting data on 1 in 10 cases. 10% are likely to be
being overpaid or underpaid at the time of the TP
comparison.
- underpayment lump sum awards
- overpayments written off
• LA has seconded staff to DWP in order to access HB for
TP calculation. It is not known how this will translate
into roll out of managed migration.
• The 2 week run-on of means-tested benefits includes tax
credits (discretionary hardship payments)
• Piloting removing the interview with JCP for those on
tax credits with no conditionality.
• Trialling different texts in letters to engage claimants
• DWP are having an in-depth conversation with all those
moving to UC. Includes; best start date, payment date,
budgeting etc
• The HAs will play an active role. There is a major
blocker though around data sharing.
10. What happens next?
Expansion to full rollout if tests are met:
• IT
• Delivery partners readiness
• Trained staff
• Assumptions and contingencies if assumptions not met
• Claimant understanding
• Claimant support
But depends on new regulations being passed
Delivery partners are preparing independently
• Identification
• Engagement
• Support
11. Planning at Guinness HA
Background
Around 1,000 homes in Harrogate
388 customers already in receipt of UC
210 customers on HB
Self Payers – high employment – not just housing costs
12. Planning at Guinness HA
Preparation
• Payment analysis
• Migration tracker
• ‘Untidy tenancies’
• APA versus Direct Debit?
• UC Project Team
• Stakeholder meetings
• Targeted Communications – benefit claimants, self payers and homeowners
• Engagement
13. Planning at Guinness HA
Identification, targeting and engagement
Ongoing income maximisation (e.g. SDP many cases of
backdated awards of thousands of pounds)
54,000 cases on the benefit calculator
185 staff use the benefit calculator
Move away from APA to DD (12% lower arrears) and allows
tracking of impact of managed migration
Informing residents in advance of UC impacts
14. Guinness - using the
calculator to support
migration to UC
• Help tenants understand impact of UC
• Illustrate the impact of weekly based income
• Help tenants budget, prioritise payments, and
prepare for paying rent in full once a month
• Help tenants understand the impact of advances
• Maximising income
17. Discussion – preparation to
support rental incomes
With APA payments taking ages one method for keeping
accounts in good position is to avoid an APA as
Guinness are doing. What are the advantages and
disadvantages of this approach?
With many challenges facing customers as they move
onto UC how can HAs help residents get UC awards that
are right first time? Does a triage process help with
this?
With UC leading to claimants being at least one month
in arrears should tenants be encouraged to pay more
and get into credit as per their tenancy agreement?