HB Direct issue 185: July 2018
Updated 4 September 2018
Applies to England, Scotland and Wales
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Editorial
Although this month’s edition is light the importance of sharing timely information with local authorities (LAs) always means we will issue a product when we need to. To that end, we’re currently reviewing our routine publications (bulletins and newsletters) to ensure how we communicate with LAs is as streamlined as possible and intend to consult with the Practitioners’ Operational Group (POG) in the near future about this.
So, this month, I’m pleased that we can announce automation for the Transition to UC Housing Payments will be introduced before the end of the calendar year. I know this is something everyone wants sooner rather than later and the team here are working with your suppliers to deliver this. This process is integral to supporting our claimants as they transition to Universal Credit and we will need this to continue through managed migration.
Speaking of migration, the draft regulations have now been published for consultation and we have invited LA responses directly through your associations. Beyond this we will work with the LA Welfare Steering Group and POG on the delivery implications of migration in due course.
As temperatures soar I hope you all have the chance to take a break from work over the summer.
Clare Elliott Head of Housing Delivery Division
Send distribution and newsletter enquiries to: [email protected]
Transition to UC Housing Payment
Following the announcements made by the Chancellor of the Exchequer on 22 November 2017 the Department for Work and Pensions (DWP) Housing Policy Division wrote out to Local Authority Information Technology (LAIT) software suppliers on 5 December 2017 to consult on the regulation changes.
Unfortunately, at that time, a number of measures were being brought in at pace and it was immediately apparent that it would not be possible to introduce any automation to the transition payment in time for the go-live date of 11 April 2018. We advised the DWP/LA POG of this. See POG meeting minutes of 29 November 2017.
A clerical process was designed and implemented on 11 April 2018 and New Burdens were paid to LAs in recognition of the additional resource required to undertake the clerical activity, and on the assumption that this would be for the full year 2018 to 2019. DWP consulted with POG regarding the amount of funding for the New Burdens and the allocation methodology.
Once implemented, the clerical process proved to be complex and led to a number of queries from LAs. To address this, DWP produced a ‘frequently asked questions’ paper which was published in May’s General information bulletin G5/2018.
Throughout this time DWP have continued to work with the LAIT Software Suppliers. On 30 April 2018 DWP provided them with detailed business requirements for an automated solution and have received potential costs and timings for delivery.
DWP have now agreed funding for this automated solution and will work with LAIT Software Suppliers to bring it in as soon as is practicable. It is our intention to complete this work by the end of the operational year (March 2019) or sooner if possible.
Review outcome of the LA Fraud Referral Process
Rollout of the Single Fraud Investigation Service (SFIS) project completed on 1 March 2016 and responsibility for the Housing Benefit (HB) Fraud Referral Process now rests with DWP’s Counter Fraud & Compliance Directorate (CFCD). Since its introduction, LAs have raised many concerns about the level of New Burdens Funding in place to support the referral process.
In response to these concerns, DWP’s Housing Delivery Division (HDD) arranged for a test to be conducted, supported by 35 volunteer LAs. This involved each of the LAs monitoring the amount of additional time spent on each referral – including (but not limited to) time to complete Local Authority Information Exchange Forms (LAIEFs), time taken to transmit supporting documents to CFCD and completion of witness statements. The test took place throughout February 2018 and timings were multiplied by the annual volume of LAIEFs and a recognised hourly rate for the grades involved.
Analysis of test results indicate that current, overall, New Burdens funding for these activities is broadly accurate. It has, however, highlighted a wide difference between activity timings across LAs and does not necessarily accurately reimburse individual LAs for the volume of referrals submitted. HDD will therefore consider whether a more sophisticated SFIS-related New Burdens allocation methodology might be appropriate for 2019 to 2020.
POG was consulted throughout this process and is aware of the outcomes. More detail will be provided to LAs in an HB circular, planned for issue later in July 2018.
More information
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