Guidance

LA Welfare Direct Bulletin 7/2019 lite

Updated 4 March 2024

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 housing.correspondenceandpqs@dwp.gov.uk

Who should read

All Housing Benefit staff.

Action

For information.

Improvements to the Verify Earnings and Pension Alerts Service

1. The Department of Work and Pension’s (DWP’s) Wider Use of Real Time Information (WURTI) project is committed to improving the quality of Verify Earnings and Pension (VEP) Alerts by using real time Housing Benefit (HB) data. To this end, we are introducing the following:

• Stage 1 integration – (Customer Information System (CIS) Interest Automation) Integration allows HB IT systems direct access to CIS which mean alerts are always available to DWP to send for open claims and won’t be sent for closed claims
  
  
• Stage 2a integration – Get HB Data allows DWP to compare declared earnings in the HB IT system against actual earnings that HM Revenue & Customs tell DWP about which means an alert will only be sent where there appears to be a mismatch

2. The benefits of Stage 1 integration – CIS Interest Automation are:

• setting and unsetting CIS interests will be an automated process – there will be some exceptions that still need to be set manually, for example, non-dependants, Universal Credit (UC) temporary accommodation and UC specified accommodation.
• users do not need to access CIS manually to set an interest if their local authority (LA) is live
• users do not need to re-access CIS to unset an interest if their LA is live
• fewer nugatory Alerts generated, in other words, Alerts with outcome ‘no active award’
• saving time and effort of LA HB processors

3. The benefits of Stage 2a integration - Get HB data are:

• better quality alerts
• no impact on user processes
• prioritised Alerts with the biggest mismatch between HB and Real Time Information data
• saving time and effort of LA HB processors

Current position: integration of Stage 1 CIS Interest Automation

4. The CIS Interest Automation solution, is currently being introduced to ensure accuracy and improve data sharing to help reduce loss due to fraud and error.

5. When an HB and Council Tax Reduction (CTR) claims starts or ends, the LA user is currently required to access CIS manually to set/unset an interest. This ensures DWP benefit data is only shared for HB and CTR recipients where an LA has a claim and ensures compliance with GDPR (General Data Protection Regulation).

6. LA software suppliers have provided LAs with the software for the new automated solution and each LA’s IT Single Point of Contact (SPOC) should be in the process of on-boarding their LA; including obtaining and installing security certificates and Application Programming Interfaces (API) keys.

7. This will allow LA HB/CTR processing systems direct access to DWP CIS via the API gateway which means LA staff will no longer have to undertake this process manually once their LA is live; with the exception of cases that still need to be set manually, for example, non-dependants, UC temporary accommodation and UC specified accommodation.

Current position: deployment of Stage 2a Get HB Data

8. The WURTI project is working with and consulting LA software suppliers to build and test the agreed solution.

9. We expect IT suppliers to release the software solution in September 2019 for LA IT SPOC deployment into LA HB systems by the end of November 2019; so LAs should start building this into their work plans.

Essential action

10. Stage 2a Get HB Data cannot be deployed into an LA’s HB system unless they have installed CIS Interest Automation. Therefore, LAs should ensure any necessary action (as previously instructed) to do this is taken as soon as possible.

Next steps

11. The WURTI project will write to LAs individually to confirm when to expect their IT supplier’s software solution, support and guidance.

12. If you have any questions about the content of this article you can email: wideruseof.rtisupport@dwp.gov.uk

Reminder: Sign-up now to benefit from improvements to the Third Party Deduction service

13. We wrote to all LA Revenues and Benefits managers recently to remind them about the improved way DWP will process applications for deductions from LAs in order to collect claimants’ Council Tax debt. These improvements are being introduced in two phases and over the coming weeks will replace the current method of paper applications.

Phase 1: electronic exchange process

14. DWP has developed an electronic exchange process that enables LAs to apply for deductions electronically; removing associated printing and postage costs and offering a simpler and more secure service. This is a straightforward process that involves your LA completing and exchanging a simple Excel spread sheet.

15. To sign-up, your LA should email the following details to: thirdparty.deductions@dwp.gov.uk

• your secure e-mail address that will be used for the exchange
• your named contact
• your direct dial phone number for any queries
• your LA creditor reference account payable (AP) number – this is the 5 figure number allocated to you by DWP when you were set up as a creditor for deductions, it can be found on your payment schedule

16. Once DWP security authorisation is in place you will be issued with the necessary products to enable an electronic exchange between your LA and DWP.

Phase 2: automated deductions from Employment and Support Allowance

17. This phase represents the main improvement to the service as deductions from Employment and Support Allowance represent 70% of all Council Tax debt. However, to take advantage of this, you must be authorised to use the electronic exchange process as phase 1 above.

The benefits of automation

18. Using DWP intelligent automation to recover Council Tax arrears enables immediate decisions on applications and also manages out inputting errors, removes issues with payments being made to incorrect LAs and prevents incorrect individual reference numbers being used. It also ensures secure delivery to the correct trusted DWP email address with responses returned to your trusted email address with details of acceptance or rejection on the same day it’s processed. There are also savings for your authority in terms of printing and postage costs.

19. To date 224 LAs have signed-up and started benefiting from the improved service, including faster processing responses. South Derbyshire LA recently said:

…have been using the automated / electronic deduction service and find the process much faster and far improved over the previous process.

Next steps for LAs

20. In order for you to use the DWP automated service (phase 2) you will first need to be approved to use the electronic exchange process (phase 1). Those LAs who have not yet signed-up to the electronic exchange process are asked to do so by Wednesday 31 July 2019.

21. If you have any questions regarding the sign-up process or the new service in general you can contact either judith.hartshorne@dwp.gov.uk or rachael.barrett@dwp.gov.uk

Removal of duplicate HB Stop notifications

22. Some LA and UC staff raised a number of similar concerns with the nugatory work caused by the issue of duplicate HB Stop notifications.

23. Further investigation confirmed there would be no negative impact to LAs if these notifications were stopped. Therefore, from Wednesday 17 July 2019, the duplicate HB Stop notification that is triggered at the end of a claimant’s first assessment period is no longer issued.

Reminder: The process for completing the MGP1(LA) for return to UC

24. Once an LA completes an MGP1(LA), they are returned via email to the Universal Credit National Inbox team with an auto populated subject line. However, the team is sometimes finding the subject line has not been completed correctly.

25. LAs should ensure that the following process is followed, as not doing so can result in a delay to the form being allocated and actioned by the correct team.

The process

• LAs should fully complete the MGP1(LA), including selecting one of 7 ‘Email header field’ drop-down options.
  
  
• Once completed, LAs should select the box ‘click here to email form’. This will pre populate the email address with the UC full service inbox address ucfull.service@dwp.gov.uk

26. The drop down option selected from the MGP1(LA) will automatically populate the subject line in the email with the same details so that this can be directed to the correct team once received by the Universal Credit National Inbox team.

27. LAs should note that an MGP1(LA) must be completed for every HB stop notice download received.

28. If you have any queries regarding the content of this article you can email uclocalauthority.liaisonteam@dwp.gov.uk

New DWP UC Regulations announced

29. On Monday 22 July 2019, DWP laid Regulations to enable:

• the ‘Move to UC’ pilot to start
• transitional payments for claimants who were in receipt of the severe disability premium (SDP) before they moved onto UC
• removal of the UC Gateway restrictions for claimants in receipt of SDP from 2021

30. These regulations will come into force on Wednesday 24 July 2019.

Move to UC pilot

31. The ‘Move to UC’ pilot aims to support those claimants who remain in receipt of our legacy benefits. Claimants who have a substantial change of circumstances will continue to move to and claim UC.

32. The UC Programme are committed to ensuring that claimants transfer successfully and are fully supported. Therefore, the pilot will begin in Harrogate Jobcentre only.

33. You can find ‘questions and answers’ that provide more detail regarding the Move to UC pilot at Annex A.

Changes to the UC Gateway for claimants entitled to SDP

34. As from January 2021, in compliance with a High Court judgment, DWP will abolish the UC Gateway restrictions for claimants in receipt of SDP in order to remove the differential treatment this has created. This means that claimants will no longer be able to make a new claim for legacy benefits (including HB) and will be signposted to make a claim to UC.

35. The removal of the UC Gateway cannot be achieved until January 2021 in order to protect the safe functioning of the UC system. In the meantime, the UC Gateway continues to operate and SDP recipients will remain on and make new claims to legacy benefits - see circular HB [A1/2019 (Revised)(https://www.gov.uk/government/publications/housing-benefit-adjudication-circulars-2019/a12019-hb-gateway-severe-disability-premium-and-claimants-with-3-or-more-children)].

36. Once the UC Gateway is removed, claimants who are receiving SDP and move to UC will be eligible to be considered for transitional payments in the same way as those already on UC.

37. Transitional payments will be made to former SDP claimants as soon as possible. Processes have been put in place to identify claimants who are potentially eligible a transitional payment. The circumstances of those identified will then be assessed for eligibility before any payment is made.

38. However, ‘HB only’ claimants will be excluded from SDP transitional payments as analysis has shown that HB only claimants do not normally experience losses when moving to UC.

39. The small number of HB only claimants who may lose out on moving to UC (usually due to their income or earnings), will be able to be considered for a Discretionary Housing Payment (DHP) if they require support with their rental costs.

40. To support this, there are planned changes to the DHP Guidance (England and Wales), to include these claimants in the list of recommended priority groups.

Annex A: Questions and answers: Move to UC pilot

Q1: What is Move to UC?

A1: UC is replacing the following benefits:

• HB
• Employment and Support Allowance (income-related)
• Jobseeker’s Allowance (income-based)
• Child Tax Credits
• Working Tax Credits
• Income Support

Move to UC is the process DWP will use to support claimants currently receiving one or more of these benefits or Tax Credits to make a new UC claim.

Q2: When/where is the pilot taking place?

A2: The pilot will run in Harrogate Jobcentre from 24 July 2019. A dedicated team has been established to support claimants. The team consists of legacy and UC work coaches, a legacy benefit processor and UC case manager and representatives from HM Revenue and Customs and Harrogate Borough Council. Decision makers from legacy and UC will also provide support when needed.

Q3: Why is DWP running a pilot?

A3: DWP is committed to moving everyone who is still on a legacy benefit to UC. We want to ensure that claimants move to UC from their legacy benefits smoothly. We are running the pilot to establish the best way to achieve this. The purpose is to work out how we can make the move from legacy benefits onto UC a straightforward and reassuring experience.

Q4: How are claimants being selected to move?

A4: We will test an approach that is based on using existing relationships that DWP or our partners have with claimants.

Initially, we will select claimants for the pilot from those that currently attend the Jobcentre for meetings with their work coach. The work coaches will build on these existing relationships to prepare claimants to move to UC and support them through the journey.

Through these relationships, we will establish whether someone is ready to move and, if not, how to get them ready. This personal, tailored face to face support will ensure the first cohort moves successfully to UC.

Q5: Will claimants be financially worse off moving to UC?

A5: Transitional Protection will be available to protect claimants so they will not be worse off financially claiming UC compared to their legacy entitlement. This will be paid as part of the claimants UC entitlement and will erode over time.

The regulations also introduce a Discretionary Hardship Payment to support those claimants who are moved to UC as part of the pilot phase.

Advances will also be available to claimants.

Q6: What support will be available to help claimants move to UC?

A6: During the pilot claimants will receive personalised support from their legacy and UC Work Coach to make the transition to UC is as smooth as possible.

Q7: When will other jobcentres areas rollout?

A7: We will only expand to other sites once we are confident that the approach we are using in Harrogate is the right one for our claimants and the business. Further communications will be issued when we are ready to increase pilot volumes.