THE IMPACT OF UNIVERSAL CREDIT IN SEDGEMOOR

Transcription

1 Sedgemoor District Council January 2017 THE IMPACT OF UNIVERSAL CREDIT IN SEDGEMOOR This document summarises the main issues raised by local service providers in relation to the impact of Universal Credit and contains a summary of the evidence to date.

2 1 Introduction The Impact of Universal Credit in Sedgemoor From 2016 full service Universal Credit began rolling out across Somerset, and since 25th May it has been available to all types of customer living in most areas of Sedgemoor. Sedgemoor District Council is supportive of the introduction of Universal Credit, but based on the evidence to date, has concerns over the way in which it is being rolled out and the subsequent impact on its most vulnerable residents. Therefore, local service providers in Sedgemoor have been sharing evidence on the impact of Universal Credit following concerns about its impact on claimants across the district, particularly the most vulnerable or disadvantaged in society. Evidence has been supplied by Citizen s Advice Sedgemoor, Sedgemoor District Council, Homes in Sedgemoor and Digital Link. Some of the main issues identified are listed below and a sample of the evidence attached in the appendices. This includes anonymised case studies to provide a flavour of the experiences of customers. More recently, Sedgemoor District Council has been working with local service providers to identify how the process could be improved to speed up the time taken to receive first payment and to work together more efficiently. These issues included adopting the Apollo List for Universal Credit applications, locating the Citizens Advice Advisor in the Job Centre to help deal with all queries in one location and improve the digilink booking system. The intention is to formally present the findings to the Department for Work and Pensions. 2 Citizens Advice Sedgemoor Citizens Advice Sedgemoor has seen a steady increase in UC issues and LASS applications relating to UC between May to August 2016, followed by a sharp rise in September. 32% of the total UC issues dealt with for the period 24th May to 30th September were received in September alone. For the same period, 37% of the total number of LASS applications relating to UC were made in September. Citizen s Advice Sedgemoor have supplied a selection of case studies in Appendix A to highlight a number of serious concerns, in particular: Delays in payment and the processing period of 6 weeks. One client accessed CAB services to obtain 8 food vouchers! ( case study 1); Digital exclusion whereby clients do not have internet access to make an online claim (case study 2); Some clients do not have bank accounts for UC to be paid directly into and so no application can be made (case study 2); During the 6 week waiting time before a first payment is made, rent arrears can accrue and thus any advance in UC payment is ordinarily used by a client to clear arrears in fear of losing their tenancy, which in turn leaves them with little or no money for a number of weeks (case study 3); 2

3 The administrative process regarding joint claims is unclear within local Job Centre Plus and client are receiving conflicting information (case study 4); The lengthy waiting times when trying to access the general UC helpline (case study 5). Citizens Advice Sedgemoor has commenced recording the experiences of Universal Credit claimants as part of an ongoing survey. The findings to date show that: 83% have difficulty either finding access to, or using, the internet, see chart below; 6. Do you have difficulty using or accessing the internet? 33% 17% No - I have no difficulty using or accessing the internet Yes - I have difficulty using the internet 50% Yes - I have difficulty finding access to the internet Of these, only 15% were told they could apply an alternative way not online; 75% found the online application form difficult or very difficult; 75% were not told about or offered help with budgeting or managing debts; 60% were not told about or offered help in using Universal Credit online; 73% had not been given information on how much Universal Credit they re paid based on how much they earn. (The remaining 27% had been told but didn t understand it); 53% were not informed of how they re payment was calculated; The main reasons for calling the UC Helpline were regarding a problem with their payment (19%) and to update a change in their circumstances (19%), see chart below. 20a If you have rung the helpline, why did you ring them? There was a problem with my payment 3% 9% 12% 19% 6% I had an incorrect payment I struggle online To make my claim To update a change in my circumstances 19% 16% 16% To change an appointment with the Jobcentre To make a complaint Other (please specify) 3

4 When asked how they paid for their essential living costs between their UC application and their first UC payment, 22% said they borrowed from friends or family, 15% said they did not pay some or all of their rent and 13% said they used a foodbank, see chart below. 10. How did you pay for your essential living costs (e.g. housing, food, energy bills) between your UC application and your first UC payment? 4% 13% 22% 7% 6% 11% 15% 2% 11% 9% I used my final wages I used my savings I used a UC advance payment I did not pay some/all of my rent I did not pay some/all of my gas or electric bills I did not pay some/all of my other bills I borrowed from friends or family I borrowed from another lender 3 Sedgemoor District Council Sedgemoor District Council s experiences mirror those of both Citizens Advice and Digilink, particularly in terms of the level of support required. However, they also raised concerns around the administration of the scheme and the additional costs to local service providers. They maintain Universal Credit Telephone Records and a sample of these are attached as Appendix B. Inadequate support for most vulnerable in Society; Lack of understanding of the nature and often severity of some customers personal circumstances (see case study 6); Delay in receiving first payment and the need to budget carefully (case study 7); Rent element of UC not paid in the first instance and clients using the personal element on housing to stay in their homes until the top-up is received; Additional work with tenants to prevent them going into arrears (and the additional cost of this to service providers); Some concerns that the administration of the virtual call centres around the country are failing, for example through providing adequate answers and explanation, and these cases are being picked up by Citizens Advice and others; The policy of the scheme is set centrally and the delivery of the scheme is controlled nationally, yet solutions on a local level is needed; Specific issues with some customers unable to make an online application due to no computer/internet access or the skills to do so; Inadequate funding to support the scheme, e.g. the 6,000 for Digilink sessions; Lack of understanding and explanation of the scheme and the frustration this causes (case studies 8 and 9). 4

5 4 Digital Link ( Digilink ) Digilink sessions are available throughout the district to provide residents with access to and support in using computers and the internet. This includes making an online UC claim and managing their account. The volunteers who run these sessions met in October and discussed their experiences of the impact of UC. (A sample case study is attached as Appendix C). They highlighted a wide range of issues faced by their clients over the last six months, including: That the most vulnerable 15-20% in society are really struggling, particularly through a lack of confidence in using computers and the internet; Even with the support of Digilink, clients cannot be expected to be digitally fluent overnight; Computer literacy and access to technology was raised as a concern such as access to a telephone or knowing how to set up an address (see case study 10); Lots of their clients do not have a bank account, an address or access to a telephone, but as UC is digital by default there is no other route into accessing UC; The biggest problem was reported as clients being pushed from pillar to post and needs much better communication and information at the start of the process about what clients are going to get out of the process what is required of them (case study 10); There is a lack of understanding clients don t understand why they re filling things out, what they re applying for or what the end result will be. By not understanding the process Digilink found that some clients had difficulty explaining themselves and their individual circumstances (case study 10); As a result, Digilink have seen an increase in frustrated clients and are concerned about the impact on their emotional wellbeing. In some cases clients they vent their frustration, and sometimes anger, at the volunteers; A number of technical issues were also raised where clients were not able to log-in to their account, the website was not working and in particular lots of issues were reported with verifying ones identification online (case study 10); The process for joint claims is unclear and how to link accounts; Delays while accessing UC on the phone (case study 10); Digilink have been overwhelmed with the increase in caseload, for example the numbers being referred to them to complete a C.V.; They provide 1 hour appointments, but have found that most UC claims take well over 1 hour to complete (case study 10); It costs 1,600 to run a session and the 6,000 from DWP to support this is considered seriously inadequate. 5

6 Number 5 Somerset Intelligence Partnership Since 2013, the Somerset Intelligence Partnership has produced an annual report on the impact of Welfare Reform 1 including Universal Credit across the County, and the latest report has recently been published (September 2016). The overall conclusion is that the latest annual data indicates a reduction of negative impacts in many issues, but is offset by some areas of increasing concern. The findings closely mirror those in previous years and highlight the following issues: Benefit delays/changes remain the biggest cause of food bank use; Caseloads are becoming more complex and thus impacting on the numbers of cases that Citizens Advice are able to manage; An increase in the number of customers to Citizens Advice raising Universal Credit related issues, particularly in relation to: o The six-week delay between application and first payment; o Access to digital support and digital services. At March 2016 there were over 1,500 people on Universal Credit across Somerset, with the largest proportion in Sedgemoor, see below 2. People Receiving Universal Credit (March 2016) Mendip Sedgemoor South Somerset Taunton Deane One of the main changes of Universal Credit is that benefits are paid directly to the tenant rather than the landlord, raising concerns around an individual s ability to manage monthly budgets that include any housing benefit. In Sedgemoor, there 4,387 social tenants whose Housing Benefit is paid directly to landlords, see chart below West Somerset 1 Welfare Reforms: Monitoring the Impact on Somerset, 2015/16. Somerset Intelligence Partnership. Taunton Welfare Reforms: Monitoring the Impact on Somerset, 2015/16. Somerset Intelligence Partnership. Taunton Ibid

7 Number Number Housing Benefit Paid Directly to Landlords (February 2016) 7,000 6,000 5,000 4,000 3,000 2,000 1, ,666 4,387 6,176 4,706 1, Mendip Sedgemoor South Somerset Taunton Deane West Somerset Social Rented Sector Private Rented Sector There are around to 21 year olds who are out of work in Somerset and claiming Universal Credit or Job Seekers Allowance. The largest proportion are within Sedgemoor, see chart below 4. Claimant Count (18-21 yrs) Mendip Sedgemoor South Somerset Taunton Deane 20 West Somerset The Trussell Trust, which runs foodbanks in Somerset, has reported nationally that benefit delays/changes remain the biggest cause of foodbank use, accounting for 42% of all referrals, up from about a third the previous year. benefit delays/changes that remain the biggest cause of food bank use with around 10,000 emergency food parcels were distributed in Somerset in 2015/16. Bridgwater has seen an increase in referrals in the last year, see chart below 5. 4 Welfare Reforms: Monitoring the Impact on Somerset, 2015/16. Somerset Intelligence Partnership. Taunton Ibid

8 Number Referrals to Trussell Trust foodbank projects - Sedgemoor 2,500 2,000 1, ,500 1, Bridgwater Cheddar Valley Highbridge 2013/ / /16 6 Proposed Solutions Since then, Sedgemoor District Council has been working with local service providers to identify how the process could be improved to speed up the time taken to receive first payment and to work together more efficiently. The main issues that have been identified are: Adopting the Apollo list for Universal Credit applications, to allow authorised SDC staff in Housing Advice/Benefits and Citizens Advice to access the latest position with a specific claim. (The Apollo list is a list of authorised staff who can currently access the latest details for a benefit claim, but which cannot be for Universal Credit claims). This is most likely because of the DWP s approach that encourages all applicants to take responsibility for their own claim, and which means that service providers cannot interact with the DWP without the client being present. Unfortunately, this does not take into account that many of the most vulnerable residents are not in a position to fully manage their own claim, for example, if they do not have the technological skills. Using the Apollo list or alternative system, would allow Housing Advice Officers to interact with the DWP and landlords to resolve potential homelessness, and act on their behalf to resolve housing issues. This is seen as the single biggest blockage to speeding up the process and would benefit the DWP, the local service providers and most importantly the client. There are many examples on the online forums from Benefits Managers nationally requesting this. Locating the Citizens Advice Advisor in the Job Centre to help deal with all queries in one place, rather than dealing with the Job Centre, Citizens Advice and possibly Digilink as well, and making separate appointments for each. If they are located in the same place, referrals can be made directly and avoid the situation where clients are referred to Citizens Advice by the Job Centre, but don t actually go there for support. The logic is that it would be more efficient for a Citizens Advice Advisor to deal with the initial claim because they can also deal with food bank vouchers and Local Authority Support Scheme applications at the same time. The ongoing management of the claim would be supported by Digilink. Improve the booking system with Digilink so appointments can be made directly without going through the Council. (Currently appointments need to be made by the Job Centre through SDC). 8

9 Appendix A: Universal Credit and Local Assistance Scheme Case Studies Case Study 1 12/07/2016 Client has been married since They have 4 children 15, 13, 11, and 9. Her husband has left her and was the sole earner in the household. Client s husband managed all of their finances. Client recommended that she applies for UC ASAP and client is happy to do this. Client aware that she will not receive any money for several weeks, but can request an advance of payment and gave client the advice guides for her information. I also explained that with UC she will not get any financial help towards her mortgage for 39 wks and suggested that she contact Money advice service for further help. LASS (Local Assistance Scheme for Somerset) form completed and client issued with a food voucher and I informed client that we can help her on a regular basis until her UC starts. 15/07/2016 Following visit to Burnham outreach Client had been trying to claim UC but had a problem with ID requirements online. Went in to Client application online and confirmed what client needs to do, in this case via appointment. Called DWP and arranged appointment in Bridgwater 18 July pm. 19/07/2016 Client returned to Burnham outreach. She wrote a note for me and included a phone number requesting the voucher stating she would return later to pick up the food. LASS form completed and client issued with a food voucher and she will return later to pick up the food. 26/07/2016 Client returned to Burnham outreach. Client has now managed to get her ID downloaded for her UC application. I asked client if she asked for an advance payment of UC and she said she forgot, but has an appointment at the JC+ this week and will ask for it. I offered client some food via the food bank and she was grateful for this. LASS form completed and client issued with a food voucher. 9

10 02/08/2016 Client came in for further food voucher whilst awaiting UC. LASS Form also completed. 09/08/2016 Client is still waiting for Universal Credit. Issued further food voucher. 16/08/2016 Client returned to outreach. She now has a couple of small jobs, one cleaning and one walking dogs. She received an in her journal from UC stating that she will be paid from 18th July - 19th August in 11 days, but there is a 7 day waiting period. Cl is not sure if she will be paid in 11 days or will have to wait the additional 7. Client requested another food voucher to tide her over until she receives her UC. LASS form completed and client issued with a food voucher. 25/08/2016 Client came into Highbridge outreach asksing for assistance. Client has this morning received her first payment of UC and this was only 317. It appears clear that DWP has made an error in this payment as it is meant to be for the five of them, one adult and four children. Client very distressed. Wanting help in contacting UC. Went online into the universal credit site, client logged in and it showed that client s payment had been for 317 but there was no explanation as to how this was made up. Telephoned UC on their helpline and eventually managed to get through where they confirmed that the client had been underpaid by at least 900. They agreed to pay this amount as an emergency payment later today. In the meantime completed LASS application and gave client a food voucher. 30/08/2016 Client still having to recover finances after UC delays. Further food voucher issued and LASS Form completed. 10

11 Case Study 2 22/08/2016 The clients partner has vacated the family home leaving the client and her two children alone. The client does not work and has never claimed benefit. The client has been advised to apply for UC and supported to make a LASS application. Client does not have internet access and so will go to friends house and apply for UC ASAP. Completed a LASS form ready for her return with applicable paperwork to enable a food voucher and utilities payments. Client returned re outcome of LASS application. Client informed me that all paperwork, bank accounts and utilities were in husbands name and she is in the process of changing over. Client has this morning opened bank account in her own name, and showed me proof of this - which is why we have no bank statement for application. Client has been unable to claim for UC until she had opened this account, and is doing so this afternoon with help of friend. Now that the client has account in her own name, she is able to change over child benefit and tax credits. Informed client that following this, we are able to assist with fuel top up and food voucher and asked client to return with fuel keys/cards. 11

12 Case Study 3 28/07/2016 Client has moved into a new flat. He is asking for help with furniture, appliances, fuels and food voucher. The client has claimed UC and is awaiting his first payment. He has received an advance of 160. Of the client s 160 from his UC advance, 100 is earmarked for rent arrears and the balance is to last him a further 3 weeks until his UC claim is in payment. Clients application for LASS assessed. Awarded on the basis client has just moved into new flat and additional expenses, also awaiting UC claim (full money). Food voucher and electric top-up 10. Unable to top-up gas as card damaged. Client informed. 12

13 Case Study 4 05/08/2016 Client and partner have sent to the CAB by Job Centre, because she has no photo ID to verify her claim for UC. The Client is in receipt of ESA currently. The clients partner, who is Portuguese, lost his job 4 weeks ago. For the last 3 weeks, they have been trying to register a joint claim for UC, but have been told that the Client needs photo ID. Claim has therefore not been registered and they are getting desperate. They have no debts, but are worried about paying rent on their private sector accommodation. Client received her final ESA payment on 4/8/16 and they have no other income. According to the CAB advice systems, Job Centre Plus should conduct an investigation themselves regarding the clients lack of photo ID. Rang UC Helpline on , only to be told that digital claims helpline is Both calls involved a long waiting time! Finally established that the Client must register her partner for the joint claim by inputting her code, her first name, followed by his date of birth and their joint post code. The person I spoke to, agreed with me that the advice from the DWP made no sense. 25/08/2016 Cl returned to CAB having been on the phone to JC+ and referred to SDC. They in turn referred them to CAB. They have been informed their UC joint claim will take 2 months to be resolved but in the meantime they have nothing coming in. SDC sent them to CAB to access LASS. 31/08/2016 Cl returned to CAB for help with food as benefit claim decision is taking some time to sort out. Client should have made a joint claim with partner rather than 2 single claims. Client expecting benefit payment in next 3 weeks and have an appointment at the Job Centre today at 12pm and intend to request an advance on benefits. Client also has an appointment at the CAB tomorrow at 12.30pm as they are currently 2 months behind with rent. Food Voucher Issued. 13

14 Case Study 5 06/09/2016 Client applied for a food voucher and a top up of his electricity key meter. He is a sole parent with a 16 year old son who has just started at college. He receives JSA and also HB and CTR but is being switched to UC due to a recent change in his circumstances. He is to receive also CTC in respect of his son. His CTC was due for payment today but there will be delay in processing it and he will receive it next Tuesday. In the meantime he has run out of money. Due to the delay in processing his UC benefit to include CTC, client has run out of money. Client applied to the JC for a crisis or hardship loan but was rejected. With supervisor's consent I phoned the UC helpline to ascertain/confirm client's CTC/UC benefits situation but was unable to get through due to a long queue. Client was advised that our LASS coordinator will phone him later re: food bank and electricity key meter top up. Client was also advised to ask at the JC for a benefits advance to tide him over until he receives his next UC payment. 14

15 Appendix B Sedgemoor District Council Universal Credit Telephone Records Case Study 6 15

16 Case Study 7 16

17 Case Study 8 17

18 Case Study 9 18

19 Appendix C Digilink Case Study Case Study 10 13th July 2016 Had previously made an online claim to UC but needed to book the interview. Went to JCP to book appointment and was advised to call the helpline number. As client is currently homeless he had no funds to make the call, JCP advised him to ask a friend or attend the Skills Café for help. Because his 7 days had expired he thought he had to set up a new account and re-start his claim, advised to sign using info already set-up. Client was asked to confirm his address but an error message on the next screen saying already in use. Checked and double checked he was using the correct information. Nothing on the screen except the helpline number in the Contact Us? Rang the helpline number from work phone, the advisor then said we had pressed the wrong option and to call again. Called the helpline again but could not get an answer this time and was on hold for a long time. Called again and we were advised to call back and press the numbers we had pressed originally! Again when redialled it was busy and we were on hold for a long time. Eventually the call was answered and the advisor didn t understand what we were trying to explain, kept telling us to go to the to-do list but it was not on the screen. Signed out of UC and instead of signing in pressed forgot user name and went through that process. Then instead of signing in pressed forgot password and went through that process answering all the security questions. Signed in with new username and password and finally got into the to-do list. Clicked on to verify online but as didn t have documents it allowed us to move on to booking the appointment. Rang the helpline and booked the interview, also requested a hardship loan via the system. Whilst this doesn t sound too difficult the whole process took over 1 hour 40mins and I made 8 calls to the helpline. There s a communication barrier with the advisers not being able to understand the issues, they can t see the customers screen and for some customers it can be difficult to explain because they don t understand the process or do not have the necessary communication skills. 19