Questions about Universal Credit
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Questions about Universal Credit
(from Universal Credit briefings delivered by Andy Brown, Business Manager,
Department for Work and Pensions and facilitated by Services from Young Children,
Hampshire County Council – October 2017)
Administration
Q. Who is going to administer Universal Credit?
A. Before different agencies were responsible for administrating benefits. For
Universal Credit this will be solely administrated by the Department for Work and
Pensions (DWP).
Q. How is Universal Credit being implemented?
A. Southampton and Eastleigh now operate Universal Credit full service. From 14
February 2018 for Basingstoke any new claim will now be for Universal Credit. Any
legacy benefits will be migrated throughout the period 2019 and 2022. All areas in
Hampshire complete implementation by autumn 2018. Some customers, prompted
by certain changes in circumstances, may migrate to Universal Credit sooner rather
than later.
Q. When will the migration to Universal Credit happen?
A. There will be a planned migration and at some point everyone will be migrated
over to Universal Credit, at least by 2022. Some customers, prompted by certain
changes in circumstances, may migrate to Universal Credit sooner rather than later.
All new customers will automatically claim under Universal Credit.
Payments
Q. When are Universal Credit payments made to claimants?
A. Payments are made at the end of a calendar month (similar to how many
employed people are paid).
Q. When signing up to Universal Credit for the first time how long does it take
to receive a payment?
A. The process takes 6 weeks in total. The claim must be made online, and within 7
days of making the online claim an appointment needs to be made with a work
coach to discuss the application. An assessment period of 4 weeks follows. Then
there is a further 1 week to process the payment. There will be some exemptions to
the initial 7 days.
1Q. Is there a concern that money given to customers will be used
inappropriately?
A. DWP has put in place support to help customers’ personal budgeting skills. The
DWP are working with partners and stakeholders so that they can signpost
accordingly.
Q. Claimant account – can a ‘history’ of information be stored on the account
so payments can be checked, etc.?
A. Yes previous transactions are recorded – for the life of the claim.
Q. Does ‘tapering’ of the income happen live?
A. Yes, assessment of income is based on ‘real time’ information which is sent by
the employer to HMRC, and then passed onto the DWP. If the assessment period
starts on the first of the month, by the end of the month income changes are
reviewed in order to calculate the next payment.
Q. How does seasonal work affect taper allowances?
A. RTI (Real Time Information) will manage this process. Universal Credit removes
all rules around hours and any adjustments to payments are based on earnings not
hours. This allows customers to accept an increase in hours, a short term contract,
etc. RTI will allow all work to be taken into account for each month assessment
period.
Q. Some staff currently have to work 30 hours or more to ensure they receive a
‘bonus’ payment through Working Tax Credit. Will that be the same for
Universal Credit?
A. No, it does not matter how many hours they work, it is that amount of income they
earn which will affect payments. Customers are advised to use the benefits
calculators to find out how much they are likely to receive.
Q. Would some staff be better off if they can trigger Universal Credit?
A. Possibly. Until the full service roll out has happened some customers would only
move to Universal Credit if there is a change of circumstances that would mean that
Universal Credit was applicable for them. Small changes with part time employment
are unlikely to trigger a change to Universal Credit. Unfortunately a customer cannot
volunteer to claim Universal Credit if they already have an existing claim. They will
have to wait until migration happens or a change of circumstances prompts the need
to claim.
Q. What is the cut off point for when claimants are no longer eligible for
Universal Credit?
A. There is no exact point as Universal Credit entitlement depends on individual
circumstances and earnings.
Q. Will there be a P60 issued for Universal Credit payments?
P60 will be generated by employers if working, if not working by the DWP.
2Q. Will overpayments continue and be recovered?
A. If there is a change in circumstances and Job Centre Plus has not been advised,
if the system calculates to an overpayment then there may be a legitimate reason to
recover funds but this will be done in a managed way.
Q. Does Working Tax/Child Tax Credit debt continue?
A. If debt from tax credits exists this will roll over into Universal Credit and continue
to be recovered.
Q. Is help available to pay advance fees?
A. Budgeting Advances provide access to interest free payments for one-off items.
They are available to claimants who have been receiving Universal Credit or an
income-related benefit continuously for a period of 6 months and have no income, or
a very low income. In the case of childcare fees this condition is waived.
They are designed to help claimants with irregular expenses, for example:
- linked to obtaining or retaining employment such as work clothes, tools,
travelling expenses and childcare costs
Anyone on making a new claim can ask for an advance payment up to 50% of their
entitlement of their first payment.
Q. Does the 16 hour rule apply?
A. For people remaining on legacy benefits the 16 hour minimum hours will still apply
until they change to Universal Credit.
Housing
Q. On the digital screen, would it be possible to have a permission to enable
the Housing Association to speak to the landlord.
A. “Social landlords” will have access to a landlords’ portal to support verification of
rent communication between the DWP and Housing Associations. A customer can
note the journal on their account to give DWP permission to speak to any third party
on their behalf.
See “Your Journal” on You Tube: https://www.youtube.com/watch?v=F8zJD7z-
TSE&index=5&list=PLDBaQKqY6OHYk6rn_FINwm6XXNkzeC6-7
Q. How does housing benefit work under Universal Credit?
A. You’ll usually get a lower amount for your housing costs if you:
live in council or social housing and have spare bedrooms
are under 35, single and rent from a private landlord
If renting from a private landlord how much support with housing costs
depends on the local housing allowance rates
Q. Can Universal Credit support deposits for housing?
A. Housing benefit cannot be used for the deposit. There is no benefit that supports
deposits. Universal Credit does not support deposits.
3Q. Can people who live in temporary accommodation claim for Universal
Credit?
A. Housing Support for those living in temporary accommodation may depend on
several factors. If a customer is living in accommodation where they receive any
form of support or care they may require a claim to housing benefit rather than
Universal Credit.
Some groups may not be able to claim for the housing element, i.e. 18 – 21 year
olds, however there will be exemptions for some groups within this age group.
Q. If you do not have an address can you claim Universal Credit?
A. You do not need an address to claim Universal Credit.
Useful info pages for housing costs:
https://www.gov.uk/housing-and-universal-credit
https://www.gov.uk/guidance/housing-costs-for-18-to-21-year-olds
Carers Allowance
Q. Currently carers receive £116 per week for carers allowance. Will someone
be better off with Universal Credit if they receive carers allowance?
A. Those who purely claim carers allowance will not automatically go onto Universal
Credit. A customer can apply to do so but they may not be better off in doing so
unless they are also working. Some carers receive carers allowance and income
support. At some point income support will migrate onto Universal Credit between
2019 and 2022.
Q. Are carers affected by Universal Credit?
A. Carers provide invaluable support for relatives, partners and friends who may be
ill, elderly or disabled. In recognition of that, Universal Credit provides an additional
amount for carers on a low income who provide care for at least 35 hours per week
for a severely disabled person.
Many carers who want to combine caring with work feel the risk of losing their
benefits is too great. The simplified structure of Universal Credit, together with the
generous work allowances and the single taper will financially support carers to take
steps into employment.
Q. Can carers on a low income claim Universal Credit?
A. Carers on a low income who provide care for at least 35 hours per week for a
severely disabled person can get an additional amount for carers as part of their
Universal Credit award.
A severely disabled person is defined as someone receiving one or more of the
following:
- Disability Living Allowance (DLA) – middle/highest rate care
- Constant Attendance Allowance – at or above the normal maximum rate with
an Industrial Injuries Disablement Benefit, or basic (full day) rate with War
Disablement Pension
- Attendance Allowance (AA)
4- Personal Independence Payment (PIP) (either rate of the daily living
component)
- Armed Forces Independence Payment
Carers do not need to be claiming Carer’s Allowance to be eligible for this additional
amount for carers.
If a claimant is in receipt of Carer’s Allowance they can still be eligible for the
additional amount for carers as part of their Universal Credit. However, the amount
they receive from Carer’s Allowance will be deducted from their Universal Credit
entitlement.
Where possible, carers should be advised that they can claim Carer’s Allowance.
Although they would not be better off financially, there are some advantages to
claiming as people who receive Carer’s Allowance:
- are entitled to a Class 1 National Insurance credit whereas Universal Credit
claimants are entitled to a Class 3 National Insurance credit
- will receive the Christmas Bonus which is not available to Universal Credit
claimants
Q. How does Universal Credit affect someone in a care home?
A. If they getting Carers Attendance Allowance they will not be eligible for Universal
Credit.
Savings / Pensions
Q. What happens if people have savings? And if they have savings but earn
less than 16K?
A. If customers earn over 16K then they won’t be eligible for Universal Credit.
Q. Are pension contributions taken into account when assessing earnings for
Universal Credit?
A. Pension contributions are not used in the calculation of earnings. The earnings
figure used in the calculation of Universal Credit entitlement will be gross earnings:
gross taxable pay, minus tax and National Insurance contributions, and ignoring
100% of contributions made to an occupational or personal pension.
When calculating earned income in Universal Credit the calculation disregards any
money already invested or that a claimant will invest in a personal or occupational
pension.
Savings or property that the claimants states are for their retirement also do not
reduce earnings. This remains until a person reaches the qualifying age for State
Pension Credit. This enables everyone of working age to invest in a pension to
support themselves in retirement.
Only contributions to a pension scheme that are “relievable pension contributions”
(s. 188 of the Finance Act 2004 http://www.legislation.gov.uk/ukpga/2004/12/section/188)
can reduce the level of earnings.
5Childcare Costs
Q What is the definition of a Child / Qualifying Young Person?
A. Definition of a child or qualifying young person
- A child is someone who is under 16 years of age
- qualifying young person is someone who is:
o aged 16 up to, but not including, 1 September following their 16th birthday
o under 20, from 1 September following their 16th birthday and they are:
o in full-time non-advanced education
o undertaking approved training
o enrolled or accepted to undertake such education or approved training
The education or training must have started before they reach 19, or they must have
been enrolled or accepted to undertake that education or training before then.
A person in receipt of Universal Credit, Employment and Support Allowance, or
Jobseeker’s Allowance is not a qualifying young person.
Q. What is the definition of Registered Childcare?
A. Childcare in England
The childcare provider must be registered with the Office for Standards in Education,
Children's Services and Skills (Ofsted) – see OFSTED
If a claimant uses childcare provided by a school it must be:
- provided by or under the direction of the person responsible for managing the
school, or a local authority
- on school premises that may be inspected as part of a school inspection
- out of school hours (activity clubs, for example ballet lessons, do not count as
after school care)
Q. Childcare costs for only 2 children under Universal Credit?
A. For one child maximum amount paid is £646.35 and for two children, £1108.04
per month, which can not equate to more that 85% of total childcare costs owed.
Under Working Tax Credit up to 70% of costs are paid for one, two, or more children.
Q. When parents of two different families cohabit, is there still the 2 child rule
for claiming childcare?
A. Yes, the household becomes one so under Universal Credit only 2 children can
receive help with childcare costs.
Useful info page for families:
https://www.gov.uk/government/publications/universal-credit-and-your-family-quick-
guide/universal-credit-further-information-for-families
Q. How can parents pay their first month of childcare costs?
A. Parent needs to speak to Work Coach for help with some of the first month costs
contribution.
Q. Can childcare costs be paid to direct to a provider?
A. There is currently no mechanism for paying costs direct to the provider. This will
remain the responsibility for the individual.
6Q. What happens if the claimant makes a late application for their childcare
costs to be paid?
A. Late reported childcare costs are:
- costs that have been paid in a previous assessment period but the claimant
only reports them in the current assessment period
- where proof of childcare costs have been supplied late (outside 1 month)
All cases will have to be considered to see if Universal Credit Full Service can be
paid. Late reporting may mean the claimant will not have these costs refunded.
Q. How are childcare provider details verified?
A. To receive help with childcare costs, the claimant must give the following
information about the childcare for each child:
- provider’s full name and childcare registration number
- full contact details of the childcare provider including address, telephone
number and manager's name
- address where the child is being looked after
- the full cost of the childcare
Any of the documents listed below can be accepted as evidence to verify a childcare
provider:
- Childcare Contract
- Letter headed invoice from the childcare provider
- Letter from the childcare provider
These documents must:
o be unaltered
o be dated
o display the relevant registration number
Q. How does a claimant verify childcare costs?
A. The claimant is responsible for supplying evidence of any childcare costs, where it
is required.
Some cases will not need monthly verification and will be automatically accepted
after being declared. In these cases claimants will not need to supply any evidence,
unless there is a change or concerns over validity.
Any of the following documents can be accepted as evidence to verify childcare
costs:
Letter or letter headed invoice from the registered childcare provider must:
- be unaltered
- be dated and annotated as being paid, and
- show the childcare amount actually paid
If the letter headed invoice is not annotated as ‘paid’, the claimant must provide a
bank statement or a cash receipt to confirm that the cost was actually paid and
when.
Bank/credit card statement displaying:
- the actual amount paid
- date when the cost was paid
- provider name as the recipient
7- Similarly detailed ATM bank receipts can be accepted
Cash payment receipt:
- Registered invoice headed receipts will be accepted
- Hand written receipts will suffice as a last resort, although it must show the
provider name
- The cash receipt must show the date of payment and amount paid.
In order to help with verification it would be helpful that all childcare providers put
their Ofsted URN on their invoices/receipts.
Q. How does the childcare provider provide documentation for the customer to
support their claim?
A. You may provide a receipt electronically or in writing which the customer can
upload onto their Universal Credit online account. Parents should be encouraged to
keep all receipts for evidence.
Q. Are invoices / receipts checked? There are some issues where parents are
being paid in advance but are not then paying the childcare provider. Can childcare
providers be a ‘third party’ payment receiver?
A. Childcare care costs will not be paid as a third party deduction.
Customers must upload their payment evidence as soon as they can. If they leave it
to the following month, they will not get paid until the end of that month. If they delay
for more than 3 months they may not get paid at all.
Q. It is the responsibility of the customer to upload their invoices. Can
childcare providers upload invoices/receipts on behalf of customers?
A. It is the responsibility of the customer to upload documentation via their accounts,
though customers can seek assistance.
Q. Should we be asking parents to flag up if they are on Universal Credits?
A. That is up to the childcare provider to decide and customer to decide.
Q. Will childcare providers need to change their payment system to monthly
rather than termly so that it is line with Universal Credit payments?
A. If the customer is issued with a termly bill the DWP will break that up into monthly
amounts and pay that directly to the customer to pay the childcare provider directly;
payments will not be paid as a lump sum for the whole period. It supports the DWP
and the customer if those invoices are transparent and clear.
Q. Can childcare providers advise the DWP if they think a customer is not
paying bills/ struggling to manage their account?
A. Yes, it would be possible to contact the local JCP offices to report concerns. The
JCP Work Coach if aware can support customers in managing their accounts. Each
customer will have a named Work Coach and have been given contact details for
them.
8Q. Many childcare providers require payment up front of at least a month
though the Universal Credit is paid in arrears.
A. DWP has access to funds in order to offer a contribution but this will not cover the
full childcare costs for the month. A budgeting advance can be requested to help
with this.
Tax Free Childcare / 30 hours
Q. Can you get Tax-Free Childcare and Universal Credit?
A. No. If eligible for Tax-Free Childcare, when the application is made, all other
benefits or Universal Credit will stop.
Q. If the 16 hours working rule no longer applies with Universal Credit will that
affect parents being eligible for the extended entitlement for early years?
A. Eligibility for 30 hours childcare is completely separate to Universal Credit.
Universal Credit will pay for the costs not covered by 30 hours childcare. Parents
should use Ofsted registered provision for childcare. Childcare providers should
outline to the parent in writing what is funded and what is paid for. Invoices will help
to support the parents to make their claims. When the parent pays the childcare
provider they need to go onto their Universal Credit account and claim for the
childcare costs as soon as possible.
Q. How does a claimant verify childcare costs?
A. The claimant is responsible for supplying evidence of any childcare costs, where it
is required.
Some cases will not need monthly verification and will be automatically accepted
after being declared. In these cases claimants will not need to supply any evidence,
unless there is a change or concerns over validity.
Any of the following documents can be accepted as evidence to verify childcare
costs:
Letter or letter headed invoice from the registered childcare provider must:
- be unaltered
- be dated and annotated as being paid, and
- show the childcare amount actually paid
If the letter headed invoice is not annotated as ‘paid’, the claimant must provide a
bank statement or a cash receipt to confirm that the cost was actually paid and
when.
Bank/credit card statement displaying:
- the actual amount paid
- date when the cost was paid
- provider name as the recipient
- Similarly detailed ATM bank receipts can be accepted
Cash payment receipt:
- Registered invoice headed receipts will be accepted
- Hand written receipts will suffice as a last resort, although it must show the
provider name
- The cash receipt must show the date of payment and amount paid.
9Disability / Health
Q. Is there a disability element?
A. Yes there is a disabled children’s premium which is based on Disability Living
Allowance (DLA). It is an extra allowance that can be claimed by the family.
Q. Disability Living Allowance. Will someone be better off with Universal Credit
if they receive DLA?
A. DLA is paid to under 16s, and Personal Independence Payment (PIP) to those
16+. Receipt of either does not preclude a claim to Universal Credit. Deductions are
not made for these benefits.
Q. Health issues affecting payments? What are the issues/options for
supporting people with health issues?
A. Universal Credit will replace the Employment Support Allowance (ESA) for all new
claims. Customers with a health condition will be offered support to return to work
where appropriate. A health condition will not mean a customer is not entitled to
Universal Credit.
Useful info page re health conditions/disability: https://www.gov.uk/health-conditions-
disability-universal-credit
Other information
Q. Will Job Centres be open 7 days a week in order to carry out assessments/
follow up interviews with people claiming Universal Credit?
A. Job Centres are looking at how they support a wide range of customers. These
currently include increasing the hours that a customer can contact their local office.
Plans of how JCP supports customers are constantly under review including opening
times and these may be amended in the future.
Customers will also be able to ‘touch base’ with their work coaches or service centre
through their online Universal Credit account or by telephone (calls free from
November 2017).
Q. Is the information about Universal Credit available in other languages/
formats?
A. Claimants who want to apply in Welsh or require support through Braille, etc.
need to contact the Universal Credit helpline:
Telephone: 0345 600 0723
Welsh language (make a claim): 0800 012 1888
Welsh language (report changes): 0345 600 3018
Text phone: 0345 600 0743
Monday to Friday, 8am to 6pm
Find out about call charges
Q. Will there be a big publicity launch?
A. Information will be given out from Local Authority newsletters and other
stakeholders.
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