WELSH SUPPORT AND EXCEPTIONS WORKING GROUP

8 May 2013

Welsh Government - Rhydycar Office, Merthyr Tydfil

Meeting Note

Present

Chris Gittins / Financial Inclusion Unit, Welsh Government
Jan Morgan / Financial Inclusion Unit, Welsh Government
Graham Mowat / Department of Work and Pensions
Stuart Walton / Department of Work and Pensions
Ruth Brown / Department of Work and Pensions
Helen Matthews / Department of Work and Pensions
Paula Holland / Welsh Local Government Association
Helen Armstrong / Community Housing Cymru
Lee Phillips / Money Advice Service
Katija Dew / Wales Co-operative Centre
David Regan / Caerphilly County Borough Council
Nicolas Evans / Cymorth
Karl Thomas / Housing Division, Welsh Government
Geoff Marlow / Housing Division, Welsh Government
Julie Nicholas / Chartered Institute of Housing
Lee Cecil / National Landlords Association
Ruth Coombs / MIND
Douglas Haig / Residential Landlords Association
Yvonne Rodgers / Barnados
Mike Bailey / Shelter Cymru
Apologies for non attendance
Fran Targett / Citizens Advice Cymru
Greg Thomas / Gofal

1. Welcome Introductions & Purpose

1.1 Chris Gittins welcomed members to the second meeting of the Welsh Support and Exceptions Working Group (SEWG) which was set up following Ministerial agreement that a Wales specific group be established as a sub group of the DWP SEWG. Apologies from Fran Targett (Citizens Advice Cymru) and Greg Thomas (Gofal)

2. Minutes of last meeting

2.1 The minutes from the last meeting held on 20 February 2013 were accepted as a true record.

3. Matters arising – Update by David Regan Caerphilly CBC on Local Authority led Universal Credit Pilots

3.1 Chris Gittins introduced David Regan from Caerphilly CBC and invited him to give an update on the Universal Credit Pilot in Caerphilly CBC. (SEWG 3).

3.2 David Regan explained that the local authority had been very proactive in raising the awareness of the forthcoming benefits changes, both internally within the authority and externally to ensure the impact for residents in Caerphilly CBC affected by the changes was fully understood and to allow sufficient time to prepare for the transition. They have been identifying and planning contact with the affected residents to offer the relevant support in the transition to the new benefits rules. However despite a large publicity campaign within the borough it was still felt that many people did not fully understand the implications of the changes.

3.3 He explained that there were also concerns that many people were digitally excluded and there was still a resistance, especially in the north of the borough, to self service. From evidence sources from Experian in 2011 36.57% of all adult population in CCBC (i.e. 49,285 adults) were defined as “digital excluded”. The LA have been focusing efforts on getting as many people as possible on line in preparation for the UC online applications. The UC LA led pilot is exploring how the Borough can ensure that digitally excluded groups within local communities are supported into “online” interaction; support is provided to residents to improve their money management skills and appropriate signposting takes place, where necessary, to support access to employment. Initiatives include Digital Fridays, Digital Champions, One-to-one IT skills sessions, “assisted self service” of E-Claim and Online Change of Circumstances and Public Access PCs.

4. DWP Implementation Updates

4.1 Graham Mowat gave an update of the Universal Credit (UC) programme using a document previously circulated to the group dated 30 April 2013 (SEWG 3).

Pathfinder after Week 1

4.2 Universal Credit went live as planned in the first of the DWP Pathfinder locations on Monday 29 April and claim volumes have been broadly in line with expectations. The first Universal Credit claimants in Ashton-under-Lyne have made their claims (all on-line so far). Oldham, Warrington and Wigan Jobcentres have been testing the claimant commitment and feedback from staff and claimants remains positive. The UC system has been consistently available since go-live and claims are progressing through the process and systems as expected. The Operational Control Centre, which is tracking the entire process from end to end, including each individual claim, is resolving any issues as they arise. DWP will continue to monitor the service closely as they carry on with the work needed to expand the service in a few months’ time. Pathfinder is still in early stages and DWP will need time to properly evaluate and understand the lessons learned. They will be undertaking extensive evaluation over the summer using a wide range of stakeholders and will be sharing the evaluation in due course.

UC Personal Planner

4.3 Considerable increase of visitors since the go-live who are using the UCPP tool. DWP now considering the commissioning of further evaluation as part of the Personal Budgeting Support testing Strategy.

PBS Pathfinder Evaluation

4.4 First draft of the plan currently out for review with returns expected by close on 8 May 2013.

Funding

4.5 Funding sub-group working to deliver the Funding Instrument to support Local Support Services. This will be chaired by DWP but with representatives from LA Associations and DWP Operations. DWP hope to have some key details about how funding will work available by end of May. Volumetrics Working Group is in the process of developing a cost-to-serve model for the costs of LSS nationally and a Resource Allocation model for guiding the distribution of resources between LAs and Districts.

Implementing Local Support Services Framework

4.6 Local Authorities have been asked to identify appropriate planning forums already in place within their respective local area, review membership and ensure both DWP and LA representation. This is to ensure that these forums can fulfil the requirements of UC delivery groups, by making sure that they have the capability and requisite skills to plan and arrange delivery of local support services for UC claimants. ‘Direct payments’ (to landlords/housing providers as an APA) now called ‘managed payments’. Direct payments now referred to as standard UC payments to claimants.

5. Discussion on impact of Universal Credit in Wales

5.1 General discussion followed re UC and Pathfinder exercise. General consensus that it has to be made clear that Pathfinder is a testing ground and not be taken as read that this will be how the final process will operate. A query was raised as to what types of equalities data was being collected to capture gaps in various communities to ensure a balanced view and whether it embraced all groups i.e. BME and Gypsies. AP Ruth Coombs to send information to WG for DWP colleagues.

5.2 Concerns still existed regarding financial capability and the fact that many claimants did not fully understand the fundamentals of basic banking e.g. direct debits and standing orders. DWP reiterated that UC claimants will have personal budgeting support before starting on monthly payments. It is hoped that the majority of claimants will eventually be able to manage their budgets/payments. A “Budgeting Club” is currently being trialled in Hammersmith and an evaluation report will be published shortly which will be shared with the group. Local Authority budgeting clubs, which provide a qualification accreditation on completion of a 3 hour courses, were mentioned as an alternative method of increasing financial awareness.

5.3 Local Support Services Framework, produced collaboratively with local authorities, will set out the principles for support to ensure that claimants who are not yet ready to budget for themselves on a monthly basis, or are unable to use the internet, are protected and assisted onto the new system. This is to ensure that claimants who have debt problems or other vulnerabilities such as poor numeracy skills, drug addiction or mental health issues are given practical support at the outset of their claim through a network of local services.

General view that because Wales operated under 22 different local authorities it was important for LAs to link in with the three Welsh DWP District Mangers for quality assurance and consistency but there was no statuary obligation to participate. Welsh LAs are now working with Job Centre+ to look at where there are gaps in provision. Chris Gittins emphasised that it was important to link into what is currently happening in Wales regarding the Advice Services review. It was emphasised that the Framework had been written in a flexible way, was not prescriptive but would have quality measure in place to ensure consistency with PBS.

6. Any Other Business

6.1 Graham Mowat explained that the National SEWG has shifted its operational focus from large face to face meetings to smaller more strategic group working. General views where expressed that the group was generating lots of ideas/information but it needed to be channelled properly to ensure it was captured and used constructively to work up practical solutions. Chris Gittins to look at future structure of Welsh SEWG perhaps by forming smaller focus groups to look at specific points from general discussions on LSS issues in Wales e.g. landlords reference groups. AP A meeting to be arranged with Welsh stakeholders to consider set up and structure – to include in the first instance CG, JM, KD. LP and PH.

6.2 Payments of housing costs were raised in view of the introduction of Universal Credit where a basic bank account may be a more practical product and should be encouraged where appropriate. Consideration should be given to looking for a banking product for the financially vulnerable whereby an organisation might be paid to deliver a “Jam Jar” facility/ basic bank accounts. Treasury still considering options.

6.3 Concerns were raised as to what DWP are doing regarding the issue of split payments in cases of domestic abuse. Graham Mowat referred to the framework guidance which sets out DWP intentions regarding joint JSA claims. Women’s aid groups to work with Pathfinder group to look at history/ trends/ interventions where appropriate.

6.4 Issues were raised regarding the incidence of debt amongst young people and families and the fear that UC will exacerbate the situation. DWP were asked whether the SEWG group will be looking at debt issues. Graham Mowat confirmed that they will be looking at this in connection with illegal money lending/payday loans and that a Government response was being developed to encourage people to choose the right options in order to avoid debt problems being compounded by UC. If UC claimants were experiencing persistent problems they would automatically go onto managed payments. It was agreed that there was a variety of organisations able to provide debt advice across Wales.

7. Date of Next Meeting

7.1 Date and venue to be confirmed shortly.

Jan Morgan

May 2013