Guidance

LA Welfare Direct 5/2020

Updated 11 December 2020

1. Contact

If you have queries about the:

• technical content of this bulletin, then 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.

2. Editorial

As you read this, we’ll be into the seventh week of lockdown in one form or another, and despite working arrangements being very different to what they were 8 weeks ago, I hope that you’ll all be starting to adjust to this ’new normal’.

In my particular part of Local Authority Partnership, Engagement and Delivery (LA-PED) division, the crisis has added a whole range of uncertainty to everything we do. For the various data sharing, data matching and automation projects my teams lead, we have had to adjust to nearly half of our team members being re-deployed to process Universal Credit claims.

Colleagues in other parts of the Department for Work and Pensions (DWP), who we also rely on, have been re-deployed, and remaining digital capacity has rightly been prioritised on urgent COVID-19 related changes.

So, as you can imagine, our planned programme of projects in 2020-2021 is in a state of flux and changes regularly. But what is interesting is that not everything is paused or cancelled. Some of our projects are continuing to progress, for example our work on Blue Badge related data sharing.

It is still recognised that that the customer service improvements and cost saving from our projects are arguably now more important than ever, so where it is possible, we will continue to roll improvements out. My thanks to all local authority (LA) colleagues who are continuing to support us on various aspects of these projects, despite your own challenges.

We have of course also been inundated with requests for deviations away from the DWP/LA Memorandum of Understanding, and we continue to work through various aspects of these, ensuring that whilst we are pragmatic given the circumstances, we don’t expose claimants or yourselves to extreme security or legal risks.

There is of course still huge uncertainty about the future, about how long the crisis will last and, of course, what impacts it will have on various aspects of Housing Benefit administration and other local welfare provision in the short, medium and long term. But hopefully our various and regular communications are keeping you updated and informed.

I’d ask you to pay particular attention to one article in this month’s LAWD about the Data Sharing and IT Issues Consultation and Engagement Forum telephone conference on Wednesday 24 June 2020.

We ran the first one as a trial in February 2020 which was attended by around half of all LAs. LAs raised lots of questions and it became very clear that many LAs on the call were suffering from data sharing and IT issues where there had been existing solutions deployed for a long time. However, they had either missed the communications about the solution and/or had not reported their problem to the LA Security and Support Team who would have been able to address the issue.

The feedback we received after the telephone conference was strongly positive, not just in terms of the instant solutions we were able to provide to longstanding problems but also in terms of the general updates provided on all our projects. So, I’d strongly encourage attendance by a representative of each LA at the June 2020 telephone conference and those we intend to hold quarterly thereafter.

Stay safe and fingers crossed for a return to some form of normality as soon as possible.

Paul Selby
Deputy Divisional Manager,
Local Authority Partnership,
Engagement and Delivery division

3. Update: Customer Information System Interest Automation and Pension Strategy Computer System uprating projects

1. We advised previously that the Department for Work and Pensions’ (DWP’s) Customer Information System (CIS) Interest Automation and Pension Strategy Computer System (PSCS) uprating projects would close on 31 March 2020 and that support from the Local Authority Data Sharing (LADS) Delivery team would reduce.

2. However, due to the current crisis the projects’ closure date has now been extended and we are still offering, albeit reduced, support to all those local authorities (LAs) who are yet to go-live. And, despite current challenges, a number of LAs have gone live over the last two weeks. LAs who have introduced both pieces of software are already experiencing significant administrative savings. Therefore, we would encourage those who have yet to go-live to do so.

CIS Interest Automation

3. Most of the of the remaining LAs yet to go-live require software supplier support for solutions to local system issues and checks to ensure the set-up of the services have been completed correctly. However, due to both reduced LADS Delivery team and software supplier support for our projects at present we ask that LAs to refer to their software supplier guidance to progress with the on-boarding activity in the first instance.

4. Do note, our technology colleagues have asked we remind LAs using the CIS Interest Automation solution that they should not be batching requests as this breaches rate limits in the micro-service.

PSCS uprating solution

5. The PSCS uprating solution is available for all LAs to use who are now live with CIS Interest Automation. For those yet to confirm connectivity and testing our assumption is activity has successfully taken place.

6. If you have any questions or require support please contact the LADS Delivery team at [email protected]

4. Invite to LAs: Data Sharing and IT Issues Consultation and Engagement Forum

7. Following the successful trial of the new Data Sharing and IT Issues Consultation and Engagement Forum in February 2020, we intend to hold these forums quarterly.

8. The next forum is on 24 June 2020 from 11am to 12 noon and a representative from each LA is invited to dial in.

9. The dial in details are:

• dial 0203 481 3254
• enter the participant code 6278652#
• your line will be muted but instructions will be given should you want to ask a question during the call
• do aim to dial in two or three minutes before the start time, as we aim to start the call promptly

10. The agenda will be as follows:

• a 15 minute introduction from DWP, covering projects recently delivered, projects currently in delivery, insight into future planned projects, as well as the most recent common issues that have been reported to us
• 15 to 20 minutes of questions from LAs about the projects and matters covered in the introduction
• 15 minutes of questions from LAs about any other data sharing or IT issues they are currently experiencing
• 10 to 15 minutes focused on suggestions from LAs about future data sharing, data matching or automation projects that DWP could consider funding and delivering

11. High level minutes will be produced, specifically focusing on the questions asked and the answers given, and these will be published on Glasscubes and included in a future edition of the LA Welfare Direct.

12. We would really like every LA to have at least one representative dial into the forum. We ask that those dialling in:

• seek input and feedback from as many of their colleagues as possible prior to dialling in, for example, questions they might want answering
• have knowledge, at least at a high level, about data sharing, data matching and current IT topic areas
• feedback to their colleagues about how the conference call went, including the answers to the questions we asked

13. We look forward to your participation on the call. However, if you have any questions in the meantime, you can contact the LADS Delivery team at [email protected]

5. Disguised remuneration schemes

14. Disguised remuneration schemes are tax avoidance devices where employees are paid using artificial loans paid via third parties in place of ordinary remuneration in order to avoid Income Tax and National Insurance contributions. The loans are provided on terms that mean they are unlikely to be repaid, so they are no different to normal income and are taxable.

15. Guidance about these schemes was issued last year in circular HB A4/2019. However, we have been advised by HM Revenue & Customs that although recovery of the loans was intended to only take place in the 2019-2020 tax year this is no longer case.

16.The guidance issued in circular HB A4/2019 still applies but you should be aware recovery of the loans will now also occur in tax years 2020-21 and 2021-22.

6. Reminder: Correct MGP1LA process

17. Following the changes that have been made to the MGP1LA process on 1 April 2020, as advised in LAWD3/2020, the Universal Credit National Inbox team are experiencing a high number of issues regarding the MGP1LA returns received since that date from LAs:

• The old template is being used - the new MGP1LA April 2020 template is available on Glasscubes

• The subject line in the email is incorrect - The MGP1LA forms are sorted out and issued to the correct team from the subject line, where this is not completed they have to be looked at individually to decide where they need to go. The subject line should be populated by selecting the appropriate MGP1LA drop-down option and then click on the link to populate the subject line and send the form.

There are 4 drop-down options:

• overlapping benefit - HB closed- official
• Severe Disability Premium (SDP) in payment - HB not closed - official
• supported exempt accommodation - HB not closed - official
• temporary accommodation - HB not closed - official

Note: An MGP1LA form should not be sent for any other reason than a reply to a HB Stop notice that the LA has received, as they will be deleted and not actioned.

The format of the MGP1LA should not be changed – this is an excel document and will not populate the email if this is changed. If LAs wish to change the format they need to ensure that the email subject line is entered manually.

The team are not able to action MGP1LA forms that have been encrypted. We have had to contact a number of LAs about this but the issue continues.

Some LAs have automated the return of the MGP1LA these LAs should ensure:

• the correct form is used
• they are only returned when required
• the subject line is correctly populated

7. Update: Change to Local Authority Performance, Engagement and Development division generic email addresses

18. As explained in LAWD4/2020, from 1 April 2020 we have changed our name from the Housing Delivery Division (HDD) to the Local Authority Partnership, Engagement and Delivery (LA-PED) division.

19. In line with this change of name, we plan to update our existing HDD generic inbox addresses between now and 30 September 2020.

20. As they change you will receive an automated response informing you of the new email address and your email will be re-directed for at least 6 months before closure of the old inbox.

21. Once we have a full list of changes we will let you via an edition of this bulletin.

8. Housing Benefit decisions by the Upper Tribunal

22. Decision Making and Appeals (DMA) Leeds is not aware of any cases that have been decided by the Upper Tribunal (UT).

23. A selection of decisions of the UT are published on their website. Do be aware that there is an undefined time lapse between decisions being issued and their appearance on the website.

24. If you have any queries about cases before the UT Judges or courts, please contact us by email at [email protected].

9. New legislation

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

• 2020 No. 427 The Statutory Sick Pay (General) (Coronavirus Amendment) (No. 3) Regulations 2020. Came into force on 16 April
• 2020 No. 450 The Maternity Allowance, Statutory Maternity Pay, Statutory Paternity Pay, Statutory Adoption Pay, Statutory Shared Parental Pay and Statutory Parental Bereavement Pay (Normal Weekly Earnings etc.) (Coronavirus) (Amendment) Regulations 2020. Came into force on 25 April
• 2020 No. 456 The State Pension Credit (Coronavirus) (Electronic Claims) (Amendment) Regulations 2020. Came into force on 4 May

26. Copies of SIs can now be downloaded from legislation.gov.uk.

10. What’s new on our HB pages on www.gov.uk

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

Document Type	Subject	Link
LAWD 4/2020	Editorial Change of divisional name Reaching State Pension age for claimants in receipt of UC Further update: Transfer Your File – Stage 2 Update: Collection of IP address data for HB claimants Publication of refreshed HB Assurance Process modules Introduction of Job Start Payment Verify Earnings and Pensions service 2020-21 Current advice for Working Tax Credit claimants COVID-19 Treatment of self-employed income and the new Self-employment Income Support Scheme: Impact on HB COVID-19 Job Retention Scheme COVID-19 Changes to earned income COVID-19 Childcare costs Discretionary Housing Payment information on LA websites European Court of Human Rights Decision Receipt and cascading of our communications within LAs Publication of HB Debt Recovery statistics HB Decisions with the Upper Tribunal NewLegislation What’s new on our HB pages on www.gov.uk	LAWD 4/2020
LAWDLite4/2020	Discretionary Housing Payments end-of-year monitoring return 2019-20 Reminder: DHP final claim form returns 2019-20 DHP government contributions 2020-2021: Initial estimate form for England and Wales DHP 2019-20 monitoring form provided as a separate attachment Appendix A	LAWDLite4/2020
S5/2020	Additional New Burdens funding to meet the costs of implementing Welfare Reform changes 2020-21	S5/2020
S6/2020	Verify Earnings and Pensions Alerts service 2020-21 payments	S6/2020
A8/2020	The Social Security (Coronavirus) (Prisoners) Regulations 2020	A8/2020