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UNIVERSAL CREDIT SPECIAL

for Universal Credit?

There are a number of key things to remember with the new benefit Universal Credit. In this article we explain what is changing and list the 5 main things we think you should think about to help you prepare.

What does Universal Credit mean for you?

It means if you are claiming any of the below you will be affected:

• Housing Benefit

• Working Tax Credits

• Job Seekers Allowance

• Employment Support Allowance

• Income Support

Over the next few years the above benefits will be replaced by Universal Credit.

These changes will affect working and non-working households and you will be affected sooner if you have a change in circumstances such as:

• Change in employment status

• Birth of child

• Moving out of area

• Relationship changes in household

What is changing and how can you prepare?

1. UC will be paid via Monthly payments

Think about whether you need to:

• Change the way you pay your bills?

• Adjust your Direct Debits, Standing Orders?

• Start completing a monthly Budget Sheets to understand your finances

• Log on to the www. moneyadviceservice.org.uk for further advice on managing money

• Log on to the UC page www. gov.uk/universal-credit to find out more

What can Money Wise do?

If you are already in debt you may find it hard to manage your money going forward. Money Wise Debt advice services can offer debt advice and may be able to help if you are in arrears.

If you are concerned about any aspect of your UC claim please speak to our UC specialist Cally who will help out in all initial aspects of setting up your claim. Turn to page 10 to find out more.

2. You will have to wait for at least 4-5 weeks to qualify and receive your first payment.

Think about whether you can:

• Manage with the delay in payment?

• Start saving now?

What can Money Wise do?

We can work with the DWP to request an Advance Payment which will help tide you over in the interim period.

We work closely with the Gateway Credit Union and can offer you help with savings – by signing you up to open a Credit Union account paying your joining fee and depositing £10 to help towards your savings.

3. Payments will be made into a Bank Account

Think about:

• Whether you have an active bank account that will allow payments to be received

• Whether you need help with opening a bank account

What can Money Wise do?

The Money Wise team can assist you in opening a bank account and advise you on the different types of account that are available.

4. You need to make payment for your rent to MHA

• You no longer will be able to rely on Housing Benefit to pay you rent and will have to pay it to us yourself.

• You will need to set up a Direct Debit or Standing Order to make payment to MHA

What can Money Wise do?

Either us, your Income officer or UC Specialist Cally can help you identify when your money is due each month and help you set up a Direct Debt or Standing Order for the most appropriate date. If you know what your payment date is you can set this up through speaking to your bank.

5. You have to apply for Council Tax Reduction

• Your housing cost paid via UC does not include Council Tax

• You will need to apply for Council Tax separately via contacting MCC on 01633 644630, email counciltax@ monmouthshire.gov.uk or apply online at www. monmouthshire.gov.uk/helpwith-your-council-tax

What can Money Wise do?

We can help you apply for the Council Tax reduction scheme to ensure that this is still in payment when you move over to UC.

When you claim Universal Credit you will be expected to sign up to and agree to a Claimant Commitment.

What is the Claimant Commitment?

The Claimant Commitment is your record of the responsibilities that you have accepted in return for receiving Universal Credit.

What is included in the Claimant Commitment?

Your Claimant Commitment will set out what you have agreed to do to, prepare for and look for work or, increase your earnings if you are already working. Your Claimant Commitment will be based on your personal circumstances and will be reviewed and updated on an ongoing basis.

How is the Claimant Commitment drawn up?

In most cases your Claimant Commitment will be drawn up during a conversation with your work coach at your local jobcentre.

Each time it is updated, you will need to accept that you agree to what is stated in the new Claimant Commitment agreement in order to keep receiving Universal Credit.

What will happen if I don’t do what has been agreed in my commitment?

Your Claimant Commitment will include the consequences of not meeting your commitments.

Your Universal Credit payments could stop and you could be sanctioned if you don’t meet your responsibilities. If you fail to meet one of your responsibilities and can’t give a good reason to explain why, depending on what you failed to do and how many times you have failed to meet your responsibilities, a sanction can last for up to three years. This means no money or reduced money!

Where can I get help if I am sanctioned?

You can get support from the Money Wise team at MHA to help you if you have been sanctioned – turn to page 4 to find out more.

Remember to avoid being sanctioned make sure you fulfil your actions under your Claimant Commitment.

How do I update my Claimant Commitment?

To claim Universal Credit you will need to have an online account, it is within this online account that you will be able to view your latest Claimant Commitment and you will be able to use this online system called the “journal” to update your progress on your goals using that account. This may be linked to your Universal Job-match account.

Do both partners in a claim need to update the Claimant Commitment?

If you claim Universal Credit as a couple, both of you will need to accept a Claimant Commitment. You will each have your own Claimant Commitment, and yours may be affected if your partner starts work or their circumstances change.

What if there is a change in my Circumstances?

Universal Credit changes as things change in your life. Your responsibilities will vary depending on such things as your family, your health and your potential for future earnings – it is your job to keep your Universal Credit information up to date.

What help can I get from my work coach?

With Universal Credit, you will experience a different type of relationship with your work coach than you may have expected.

You work coach will focus on mentoring and coaching you, to help you meet the requirements recorded in your Claimant Commitment.

You will be provided with support, which will challenge you to fulfil your potential and help you to raise your expectations of what you can achieve.

If you are able to look or prepare for work, your Claimant Commitment will include things like your job goals, regular work search activity, or any work preparation actions that you must complete to receive Universal Credit.

Work search activity could involve registering with Universal Jobmatch or a recruitment agency, or applying for suggested vacancies.

Work preparation activity could include preparing a CV or attending and completing a training course. You could also be expected to attend regular interviews to discuss progress.

You should think of job seeking as a full-time job. You will be expected to look or prepare for work for 35 hours a week, depending on your circumstances.