Guidance

LA Welfare Direct Bulletin 12/2018

Updated 3 December 2018

Contact

If you have queries about the:

• technical content of this bulletin, the contact details are given at the end of each article
• general content and distribution of this bulletin, contact [email protected]

Who should read

All Housing Benefit staff

Action

For information

Editorial

I have the pleasure of providing the editorial for this December edition but I’ll try to avoid any Christmas clichés and keep it brief as there’s a lot packed into this month’s issue.

So in response to a suggestion that he was past his best, a famous fictional adventurer (clue: whip and hat) once said “It’s not the years, it’s the mileage”. I’m reminded of this with regards to working on Housing Benefit from time to time, particularly as the levels and complexities of the work involved change considerably both through what the Department for Work and Pension (DWP) does (in terms of policy, funding, governance, engagement etc) and obviously what you and your teams do in delivering the benefit year in year out. But we stick with it, as the end game is vital support for our claimants.

I, for my sins, have been involved in this area on and off (man and boy) for more years than I care to remember both working in local authorities (LAs) and DWP. Through my various roles I’ve come into contact with many LA colleagues over the years and it’s heartening to still see many of the same faces and to see your dedication, passion and desire to get it right.

My team lead on ensuring we impact policy changes on your service so that process designs, guidance, communications and appropriate funding are provided. We do this in a number of ways but key to it all is your involvement. Whether that be through the formal governance routes such as the LA Welfare Steering Group or Practitioners’ Operational Group or through workshops, pilots and data gathering projects.

This can present challenges in terms of delivering things to short timescales for a variety of reasons in terms of the policy and budgetary position. You will remember right at the start of the year we introduced the Transition to Universal Credit (UC) Housing Payments and closed the UC gateway to new temporary accommodation cases. You have taken both of these in your stride and it won’t be the last time. So we endeavour to improve our ways of engaging on change but, please remember, sometimes there are restrictions on what we can do and when. Between us all I’m sure we’ve been round the mileage clock several times. Surely we’re overdue for an MOT, or at least a break over Christmas.

Merry Christmas all!

Darren Baker
Housing Delivery Division (Change and Communications, Fraud, Error and Debt team)

Universal Credit data sharing issues

Background

1. Housing Delivery Division (HDD) began an unconstrained review in June 2018 about Universal Credit (UC) data sharing for Local Council Tax Reduction (LCTR) purposes, following ongoing concerns raised by various local authorities (LAs).

2. Specifically, we have been working with Practitioners’ Operational Group representative LAs to understand the issues faced and asked for their views on the following:

• list all the UC data variables LAs currently receive that you don’t think they need and why
• list all the UC data variables you think LAs need for LCTR purposes but don’t currently receive and why
• list all the UC data variables you think LAs need for reasons other than LCTR purposes but don’t currently receive and why

3. Following initial LA responses, we held a workshop in mid-July to discuss and clarify their requests. Since early August, we have been working with colleagues across the department to understand each issue in more detail. Some of the issues still require further more detailed root cause investigation, whereas others have turned out to be non-issues.

4. This article is intended to provide full and transparent updates on each and every issue, so that all LAs understand where changes may be made in the future and where change is not possible. Duplicate Stop Notices at the end of the first Assessment Period.

5. HDD are working with the UC team to stop clerical notifications being issued to LAs when they are not required. The current correct process is for the Housing Benefit (HB) Stop Notice to be issued after the verification of claimant ID.

6. The Customer Information System (CIS) HB interest marker must be unset by the LA when the HB claim is closed as part of the HB claim closure process. LAs must then complete and return the MGP1 to the UC Service Centre. The MGP1 needs to be completed for every claimant, including when the HB claim continues, as the claimant is living in specified or temporary accommodation.

7. If the MGP1 has been sent by the LA and received or processed by the UC Service Centre before the end of the Assessment Period, then a duplicate HB Stop Notice will not be sent. However, where the MGP1 has not been received, or the correct actions have not been taken by the UC agents, then a duplicate HB Stop Notice will be issued.

8. Change of Circumstances notifications received where nothing appears to have changed or there are only minor changes showing that don’t impact a change.

9. The UC design for change of circumstances notifications is that they should only be issued where there has been an actual change to the claim or payment details. If LAs are receiving examples where this isn’t the case, they should raise an incident (providing examples to the LA Security and Support Team (LASST) as per the LA Action section below).

Additional items needed on the data share that cannot be shared

10. The following items have been requested by LAs for UC to include in the data share but we have confirmed cannot be shared. These are:

• non-dependant income
• unearned income
• free school meals information

11. UC does not collect this information as it is not required for the UC calculation. Consequently, it is therefore not available for data sharing with LAs. The ministerial agreement on the introduction of UC was that UC would only share the data that was available and no additional information can or will be gathered solely for LCTR purposes that wasn’t required for UC purposes. There are no plans to change this arrangement.

Additional items requested by LAs

12. During the review, LAs identified other data items which it might be possible to share with LAs. HDD are working with LAs and UC colleagues to establish the business case for changing the current data share specification to provide the following additional information, where it is available:

• indication on whether employment is salaried or based on hours worked
• tariff income
• minimum income floor amount
• self-employed indicator
• student indicator
• information to support LA delivery of welfare benefits, for example, Discretionary Housing Payment (DHP) decisions

13. If LAs have identified any other items they would like UC to consider sharing then please raise these through [email protected]

14. In addition, HDD is supporting the current round of UC LA engagement workshops. At them, we are discussing some of the triggers for data sharing and any issues surrounding the data shared. Any additional suggestions from these events will feed into the business case considerations for enhancing the data share.

LA action

15. If LAs are experiencing any issues with data sharing please ensure you consult the UC learning pack and the UC data sharing technical guidance. If these do not resolve your issue, then raise an incident via an email to the LASST team at [email protected]. Remember when raising an incident to provide the XML file and any other supporting evidence.

16. In addition, the UC LA full service support pack as another option for the LA to refer to; which is currently in the process of being reviewed.

UC rollout

17. On the 12 December 2018 UC will have completed its rollout across the UK. All claimants wishing to make new claim to any working age benefits will need to claim UC from this date. This includes claimants who need help with housing costs.

18. The following exceptions will require the claimant to make a claim for Housing Benefit:

• claimant is living in temporary accommodation
• claimant is living in specified accommodation
• claimant has 3 or more children

19. Circular HB A7/2018 has more information about when a UC claim is needed.

20. The iWorks system that has been used to support Jobseeker’s Allowance claimants moving in and out of work, will be closed from 12 December 2018. This means that IWK4 forms will no longer be issued when a claimant moves into work. This will not impact on the data that is shared through ATLAS (Automated Transfer of LA Systems).

Update: National Fraud Initiative

21. As set out in the NFI 2018/19 final work programme and scale of fees consultation outcome (published by the Cabinet Office in July 2018), insurance data has been removed from the list of mandatory datasets required for the National Fraud Initiative (NFI) 2018-19 exercise. Subsequently, the matching of HB data to Insurance data will no longer take place.

22. The decision to remove insurance data from the list of mandatory data requirements for NFI was based on analysis of outcomes derived from the previous NFI exercise and other influencing factors.

23. Analysis of data from the previous NFI 2016-17 exercise identified just £15,500 outcomes from insurance data matches. Furthermore, only 18 of the 3,200 HB to insurance data matches released to LAs in NFI 201617 were referred to DWP as potential fraud.

24. NFI data quality reviews highlighted concerns over the quality and completeness of insurance data submitted by LAs in past NFI exercises. Also, insurance data does not effectively enhance other flexible matching products within the NFI such as AppCheck and ReCheck.

25. For these reasons, Cabinet Office concluded that it is not an effective use of participants’ resources, or that it is proportionate under data protection legislation, to continue to mandate the inclusion of Insurance data in the NFI.

Pension Strategy Computer System uprating

26. The department is responsible for sharing data with LAs on an annual basis where DWP Pension Strategy Computer System (PSCS) hosted benefits (for example, the State Retirement Pension) have been uprated.

27. However, in previous year’s attempts to automate the process (in other words, provide via ATLAS) has failed. The reason for this failure is the inability of one of the key systems or components to process the unusually large file that is output after the uprating of all the PSCS benefits has taken place. Hence to date PSCS uprating data has never been provided to the LA via an automated process, despite a number of attempts.

28. Currently, LAs manually apply the increase to each PSCS benefit award claim when reviewing yearly HB and LCTR claims. LAs estimate that a significant number of cases per year could potentially be over or underpaid by LAs due to not receiving accurate PSCS uprating data from DWP. In addition, annual administration costs are higher than they need to be.

29. HDD’s LA Data Sharing (LADS) delivery team has been working with the DWP Digital Architects and LA IT software suppliers to identify a solution to automate this process. We have authorised all LA IT software suppliers to commence design and development activities and the aim was to introduce the new service later this year in time for April 2019 annual uprating. However, unfortunately, this has been delayed until later in 2019.

30. DWP and LA IT software suppliers are currently developing a solution that will give the LAs access to accurate PSCS uprating data, not only during the annual uprating period but also whenever required for general HB/LCTR claim maintenance. This involves LA HB/LCTR systems having direct access to the CIS (Customer Information System), using new and improved software capabilities.

31. Once the new service is live it will remove the need for LA operational staff to manually apply the increase. Providing access to accurate PSCS uprating amounts to the LAs will also ensure overpayments do not occur.

32. We will continue to update you on the progress of this work through Glasscubes and future articles in these LA Welfare Direct bulletins. We may also seek LA volunteers to help during the testing phase. In the meantime if you have any questions you can e-mail [email protected]

LA Insight Survey Wave 36 deadline for completion

33. The deadline for completing the Local Authority Insight Survey Wave 36, which focuses on DHPs, is 17 December 2018.

34. The greater number of responses we receive from LAs, the more reliable and impactful the findings on the demand and effectiveness of DHPs. The research from the findings will inform the 2019 spending review and represents a major opportunity for LAs to have significant input into the future of DHPs. Therefore, we strongly encourage you to complete the survey by the deadline to ensure your LA is heard.

35. The survey has been live since 5 November 2018 when all English and Welsh LAs were sent an online survey to complete. Please check for an email invitation from NatCen with a link to the survey. If you haven’t received your email invitation, please contact Andrew Luty on 0114 204 4143 or [email protected]

Best Start Grant

36. On 20 November 2018 the Scottish Government announced the start date of the 10 December 2018 for the first phase of the Best Start Grant (BSG).

37. BSG will replace the Sure Start Maternity Grant for claimants living in Scotland.

38. It is made up of three cash payments, to be paid at key stages in a child’s life:

• pregnancy and baby payment
• nursery or early learning payment
• school age payment

39. BSG can be paid for each eligible child in a family. There is no limit to the number of children who can receive a BSG payment in any one family.

40. The first BSG pregnancy and baby payments will be made before Christmas 2018. The payment will see eligible applicants receive £600 for their first child and £300 for all subsequent children.

41. In addition to the pregnancy and baby payment, by summer 2019, two additional early years payments will be introduced. The first payment of £250 will be made around the time a child starts nursery to help with the costs of early learning and a further £250 will be paid when they start school.

Eligibility

42. To get BSG the claimant must:

• be living in, and prove an intention to stay in, Scotland
• have responsibility for a child/children named on the BSG claim form (as either the birth parent or have become responsible for the child as the result of a relevant adoption or care order)
• be getting a qualifying benefit or tax credit – HB is a qualifying benefit for the purposes of BSG applications

43. BSG will not be taken into account when calculating entitlement to other benefits/credits including HB.

44. Claimants only need to make a single claim for all three parts of BSG. They do not need to fill in a separate claim form for each payment.

45. For further information and how to claim go to: www.mygov.scot/pregnancy-and-baby-payment/

New HB resilience guidance for LAs

46. HDD has produced guidance on HB resilience covering a range of approaches LAs have adopted to manage adverse events and fluctuating workloads, etc. The information used to produce the guidance was gathered directly from LAs and other official sources.

47. To learn more about HB resilience please read the guidance Housing Benefit resilience: Guidance for local authorities.

48. You can also contact HDD’s Performance Development team which provides a free consultancy service on how to improve administrative effectiveness, efficiency and achieve sustainable improvements in HB delivery. The team offers advice on benefits administration, counter-fraud, debt recovery and provides help to implement continuous improvement. For further information please email [email protected]

Amendments to UC regulations

49. The government has amended the regulations so that all 18 to 21 year olds will become entitled to claim financial support towards their rent in UC full service areas. The regulations formed part of the UC Miscellaneous Regulations package which was laid in Parliament on the 5 November 2018 and will come into effect on the 31 December 2018.

50. Once the law is changed then, subject to normal provisions, those who previously did not receive support may be entitled to receive financial support towards their housing costs. The policy will not apply retrospectively and claimants should ensure that their UC account accurately reflects their current housing status and notify UC of any changes. This will enable housing support to be provided in the first whole assessment period following the date of implementation.

51. If you have any queries regarding the content of this article you can email [email protected]

Help to Save

52. Help to Save is a new savings account that is available to around 3.5 million people entitled to Working Tax Credit or receiving UC. It can help those on low incomes boost their savings by 50p for every £1 saved.

53. With Help to Save, customers earn bonuses rather than interest. They get bonuses at the end of the second and fourth years based on how much they’ve saved. Up to £50 can be saved each calendar month.

54. That means, over the four years, customers saving the maximum £50 every month can save £2,400 and receive tax-free bonuses of £1,200 to spend however they like.

55. The government-backed account is easy to use, flexible and secure; how much is saved and when is up to the account holder. Customers can withdraw money whenever they like.

56. If a customer or their partner have £6,000 or less in personal savings this will not affect how much HB they get. This includes any savings in their Help to Save account.

57. Help to Save bonuses will not affect their HB payments.

58. The maximum amount that can be accumulated with Help to Save is £3,600.

59. People who want to check their eligibility and open an account can apply online or through the HM Revenue & Customs (HMRC) app.

60. To find out more watch the video.

61. For further details contact [email protected]

HB decisions by the Upper Tribunal

62. Decision Making and Appeals (DMA) Leeds is aware of the following HB cases that have been decided by the Upper Tribunal (UT):

• CH/3551/16: Service charge not excessive. Unrealistic comparator used
• CH/922/2018: Remitted - First-tier Tribunal misdirected itself on the meaning of “good cause”. It did not properly apply the test in R(S) 2/63 for the purpose of backdating a claim for HB
• CH/4674/14, CH/2658/15: Removal of Spare Room Subsidy (RSRS). LA decision restored. Carmichael followed
• CH/2030/17: Commercial basis. Tribunal should have applied dominant purpose test
• CH/2910/17: Tribunal failed to consider liability for two dwellings under regulation 7(6)(d)
• CH/954/17: RSRS. Remit. Nelson followed
• CH/2095/17: Remitted - inadequate findings of fact in relation to the recoverability of the overpayment
• CH/1402/15: RSRS. LA decision restored. Nelson and Carmichael followed

Decisions of the UT are published on their website which can be found on www.gov.uk

63. If you have any queries about cases before the UT Judges or courts, please contact us by email at [email protected] or fax on 0113 232 4841.

New legislation

64. The following Statutory Instruments (SIs) have been laid:

• 2018 No. 1129 The Universal Credit and Jobseeker’s Allowance (Miscellaneous Amendments) Regulations 2018, laid before Parliament on 5 November 2018
• 2018 No. 1217 The State Pension Revaluation for Transitional Pensions Order 2018, laid before Parliament on 26 November 2018
• 2018 No. 1219 The State Pension Debits and Credits (Revaluation) Order 2018, laid before Parliament on 26 November 2018

• 2018 No. 1218 The Occupational Pensions (Revaluation) Order 2018, coming into force on 1 January 2019 65. The following Statutory Rule (SRs) of Northern Ireland has been laid:

• 2018 No. 187 The Universal Credit and Jobseeker’s Allowance (Miscellaneous Amendments) Regulations (Northern Ireland) 2018, laid before Parliament on 5 November 2018

Copies of SIs and SRs can now be downloaded from www.legislation.gov.uk

What’s new on our HB pages on GOV.UK

66. The following items can be found on the website link shown:

Document type	Subject	Link
LAWD11/2018	Editorial	LAWD11/2018
	How the department is publishing content on www.gov.uk
	Reminder: Discretionary Housing Payment mid-year monitoring return 2018-19
	Update: Supported housing
	Scottish Government’s Carer’s Allowance Supplement
	Reminder: The LA Insight Survey Wave 36 on DHPs (England and Wales only) is now live
	Interim advice on exchanging emails with trusted partners
	HB Decisions with the Upper Tribunal
	New legislation
	What’s new on our HB pages on GOV.UK
HB S12/2018	Assurance of Housing Benefit subsidy following the end of Public Sector Audit Appointments transitional arrangements (England only)	HB S12/2018
UC3/2018	Introduction	UC3/2018
	Universal Credit Announcements
	Universal Support – Local Authority Funding
	Corporate Appointees Integrated Telephony
	Understanding Universal Credit – Website and Video Guide to Universal Credit – supporting the Homeless and Rough Sleepers
	Trusted Partner and the Landlord Portal
	Local Authority Quarterly Engagement Workshops
	LA Full Service Support Pack Update
	Welsh Language - Fully bilingual system
	Social Rented Sector Annual Rent Increase October 2018
	Managed Migration
	DWP LA Welfare Steering Group
	LA Practitioners’ Operational Group
	Universal Credit Statistics
	Housing Benefit Information