Universal Credit: its impact and what you can do about it
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Deven Ghelani, founder and director of Policy in Practice, was invited to speak at the IRRV Annual Conference and Exhibition 2018 in Telford. He delivered this talk, titled Universal Credit: its impact and what you can do about it to the local authority, enforcement agents and third sector audience. To find out more visit www.policyinpractice.co.uk, call 0330 088 9242 or email hello@policyinpractice.co.uk
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Universal Credit: its impact and what you can do about it
- 1. Policy in Practice Deven Ghelani Universal Credit: Its impact and what you can do about it
- 2. We make the welfare system simple to understand, so that people can make the decisions that are right for them We help people toward independence by making the welfare system simple to understand.
- 4. Universal Credit 1.Universal Credit: Progress update • Rollout to date • Universal Support and Citizens advice • Who loses and why? 2.The impact in your area • House of Commons Library tool • Regional and ward level analysis of the impacts • Who will struggle with Universal Credit? • Who is on Universal Credit today? 3. The impact of Universal Credit • What is the impact of Universal Credit on homelessness? • Engage people with personalised support
- 5. 555 Universal Credit Progress: Rollout to date
- 7. Full service implementation • Full service for all new claims will be rolled-out by end of 2018 • Roll-out is ramping up - only 6 councils in March and April. But 25 in May, 34 in June, 41 in July • ‘Fire-break’ in August but 43 councils in September, including Glasgow and Liverpool, another 43 in October • Then migration of existing cases from July 2019
- 8. Presentation to Cabinet • Esther McVey reported to Cabinet on progress in rolling out Universal Credit • 84% claimants paid on time (so 16% were not) • about two-thirds of those claimants not paid on time had an outstanding verification issue such as providing bank statements, evidence of childcare costs or proof of rent. • Other delays were caused when claimants had not signed up to job- seeking commitments required by the DWP.
- 9. 999 Secretary of State: “Half of all lone parents and two-thirds of couples with children stand to lose £2,400 a year, £200 each month, once they are transferred to universal credit.”
- 10. SoS: “Some will lose £200 a month” Policy in Practice analysis finds that half of all families in work will be worse off under Universal Credit. This includes • Owner-occupiers (ineligibility and higher withdrawal rate) • Lone parents (cuts to work incentives and U25 rate) • People with three or more children (due to the two-child limit) • Disabled people (due to loss in premiums) • Self-employed people (due to the minimum income floor) Many of the losses are not inherent to Universal Credit – what would happen if these changes were introduced to the legacy system?
- 11. Roll-out varies by claimant type
- 12. Universal Support: The role for you There is and always will be an important and essential role for local authorities… The demand for Universal Credit data to make local support effective is essential. Universal Support means preventing homelessness, and stopping children from falling into care and broader holistic support
- 13. Luton’s early outreach project
- 14. House of Commons Library • Roll-out 14% complete • Just under 7 million households are expected to receive UC when it is fully introduced. • House of Commons Library: Constituency data rollout tool • Stat-Xplore: Stat-Xplore
- 17. Questions and Learn More • Policy in Practice Select Committee analysis on the Benefit Cap • House of Commons – Universal Credit in your area • DWP – Stat-Xplore • Policy in Practice – Pan-London analysis • Policy in Practice – LIFT Dashboard for Universal Credit impacts • Policy in Practice – Benefit and Budgeting Calculator • Influence National Policy – email hello@ to join our Leading Lights • Come and see a demo and ask questions at our stand This isn’t the end of the line for local authorities… The demand for Universal Credit data to make local support effective is essential if the support you provide means preventing homelessness, and stopping children from falling into care.
- 18. At a glance dashboard giving you actionable information. • Universal Credit • Discretionary support • Future reforms • Housing Needs • Arrears and debts New use cases are being developed each month. A quick overview
- 19. We bring multiple datasets together. To show the combined impact of policy – both now and in the future. With financial resilience and arrears risk through household level income and expenditure data. The cumulative impact of policies…
- 20. Mrs Jones near Spring Lane is £5,009 in arrears with a shortfall of £371 per month. She will be £54.38 per month worse off as a result of the benefit cap and has high barriers to work. …on each individual household….
- 21. Link the data directly into our Benefit and Budgeting support in single system. Efficiencies avoiding multiple or repeat data capture. Show the impact of moving into work alongside personalised and preventative advice on actions to increase income, and reduce costs. Engage residents
- 22. Understand the pathways into and out of debt and poverty. Understand the journey into and out of debt, or see household in severe, short term or persistent debt. Understand the effectiveness of interventions to get people out of debt. …to track households over time
- 23. We believe the DWP can better target Universal Support. • identify the impact of Universal Credit on households before they migrate across • track the outcomes of households as they move onto Universal Credit, and • engage households through clear calculations, explanations and advice that help people to take control of their situation. Our view on Managed Migration “Managed migration could fix Universal Credit’s image problem” “Nine in ten applications for a Discretionary Housing Payment (DHP) are successful, Yet only one in five households that need a DHP apply.”
- 24. 242424 Thank you, any questions? Deven Ghelani Policy in Practice hello@policyinpractice.co.uk 0330 088 9242
Editor's Notes
- Three main areas: - Software Analytics Policy I worked on Universal Credit, Policy into Practice – Make sure policy can be understood by people and organisation on the frontline. Ensure policy is informed by practical experience on the frontline.
- Download and extract the data.