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Latest Universal Credit statistics
In the first month after
the coronavirus lockdown (16 March 2020 to 15 April), more than 1.5
million initial applications (referred to in DWP published
statistics as ‘declarations’) were made for universal credit
compared with the pre-crisis monthly number of claims of around
200,000 claims.
Since then, although the numbers have fallen since this peak, the
number of claims for universal credit each week, continue to be
more than double the weekly pre crisis numbers.
Local authorities can expect to receive a similar increase in the
number of applications being made under their council tax support
schemes. This will also impact on the number of additional hardship
awards being made for council tax support under the new hardship
fund arrangements.
The 'Universal Credit management information tables: 1 March to 5 May
2020', published by the DWP contain the first of new weekly updates
on the daily number of declarations made to universal credit.
These statistics show that there were more than 170,000 individual
'declarations' made during the week beginning 29 April 2020, as
compared to just over 75,000 in week beginning 4 March
A 'declaration' is made where an individual/household provides
information on their personal circumstances to begin a universal
credit claim. Not all declarations will go on to receive a payment.
The pre-crisis data shows that around 20% of declarations are
closed without an award of universal credit being made, due to the
claimant failing to comply with the claimant commitment or initial
interview requirements.
Analysing the figures set
out in the tables, the DWP highlights that -
- from 1 March to 28 April 2020,
there were 2.5 million individual 'declarations' to universal
credit
- since 16 March 2020, when the
coronavirus lockdown came into effect, there have been 2.3
million individual 'declarations'
- while there is still an increase
in volumes compared to normal business, these are now
beginning to fall
The DWP also sets out
statistics on the number of universal credit advances paid in the
period from 1 March to 28 April 2020, including that, since 16
March 2020 it has made around 815,000 advance payments.
Stat-Xplore contains some ready-made tables and
allows users to explore universal credit data and build their own
tables.
Job retention scheme extended until the
end of October
On the 12 May 2020,
Chancellor Rishi Sunak announced that the Coronavirus Job Retention
Scheme will be extended to end of October 2020.
The Chancellor also
announced that furloughed staff will be able to work part-time from
August 2020, but that employers will be asked to start sharing the
costs of paying people's salaries
The scheme initially came
into effect from 1 March 2020 for three months but was later
extended to the end of June 2020.
Mr Sunak told parliament
that -
- the scheme will be extended for a
further four months, for all sectors and regions of the UK
- there will be no changes to the
scheme before the end of July
- from August to October, employers
currently using the scheme will be able to bring furloughed
employees back part-time
- from August, employers will be
asked to start sharing the costs of paying people's salaries
- the 'combined efforts of
government and employers', will continue to provide furloughed
employees with 80% of their salary, up to £2,500 a month.
More details and
information around the extended scheme's implementation will be
made available by the end of May.
Employees affected by Coronavirus will retain
entitlement to tax credits
On 4 May 2020, Her Majesty’s
Revenues and Customs (HMRC) confirmed employees and self employed
receiving legacy tax credits who have been furloughed or otherwise
are not working their normal hours will be treated as if they were
still working their normal hours and will retain entitlement to
their usual tax credits until the Job Retention Scheme and
Self-Employment Income Support Scheme close, even if they are not
using either scheme.
Claimants will not need to
contact HMRC about this change. Instead, they will automatically be
treated as working based on the information already held about the
number of hours they normally work.
Claimants should still
report any other changes in income, childcare and hours in the
normal way or if their partner loses their job, is made redundant or
ceases trading.
For more information, see Tax credits customers will continue to receive payments
even if working fewer hours due to COVID-19 from gov.uk
Claims for universal credit made by legacy tax
credit claimants
In a tweet from DWP on
April 27 2020, the DWP issued a warning that anyone currently
receiving tax credits who applies for universal credit, will bring
their tax credit claim to an end, even where it is subsequently
determined that the claimant does not qualify for universal credit.
Such a situation may occur,
for example, where the claimant’s capital is above £16,000 or where
the steeper earnings taper results in the claimant not being
eligible for universal credit.
In such situations,
regulations prevent legacy tax credits from being re-claimed. In
addition, the DWP says that neither they, nor HMRC, will provide
‘better-buy’ advice on whether claiming universal credit or tax
credits will provide a higher entitlement to benefits.
In a debate in parliament
on 4 May 2020 providing an update on Covid 19 the Secretary of
State for Work and Pensions, Dr Thérèse Coffey said she is
'actively looking' at what can be done for tax credit claimants who
have lost their entitlement due to applying for universal credit.
Dr Coffey added that she
has 'already asked for the website to be updated', so that people
are 'crystal clear' when they apply.
Her reply was in response
to a question was raised by Conservative MP Owen Paterson about tax
credit claimants who have been encouraged by the government to
claim universal credit without realising that doing so would cause
their entitlement to tax credits to cease. Dr. Coffey’s reply was;
'I am very aware of the
issue he is bringing to my attention, and I am actively looking at
that particular scenario, where people, not realising some of the
eligibility rules, have then made the application and are no longer
effectively going to receive working tax credits.
I cannot give an answer to
my right hon. Friend or the House today, but I assure him that I am
looking very carefully into what changes we could make to address
that situation. I have already asked for the website to be updated,
so that people are crystal clear when they apply.'
In addition, Dr. Coffey
rejected requests to introduce a number of other measures to
support those still struggling as a result of COVID-19 - including
suspending the benefit cap and two child policy, and raising legacy
benefits in line with universal credit.
Launch of on-line service for landlords to request
direct payments
The DWP has launched a new
online service for landlords to request monthly direct payments of
rent or direct payment of rent arrears.
Direct payment of rent
arrears is subject to the maximum level of direct deductions,
currently 30% of the universal credit standard element. Such direct
deductions were also suspended until 10 May 2020. Details are still
awaited as to whether this timescale will be/has been extended.
The on-line service, called
the Apply for a Direct Rent Payment service
replaces the existing managed payment to landlord (MPTL) request
process, that relied on landlords obtaining and completing a UC47
form which could be requested online but then had to be emailed or
posted to the DWP.
The DWP has also provided updated guidance to both private sector and
social landlords on using the new service.
A managed payment to
landlord can be made when:
- a claimant is in arrears with
their rent for an amount equal to, or more than, 2 months of
their rent
- a claimant has continually
underpaid their rent over more than 2 months, and they have
accrued arrears of an amount equal to or more than one month’s
rent
- any of the other vulnerability
issues set out in either Tier 1 or Tier 2 alternative payment
factors apply
- a claimant was previously in
receipt of Housing Benefit and it was paid to their landlord,
a MPTL can be considered providing the claimant continues to
meet the Tier 1 or Tier 2 APA factors
Following a request for
direct payment of a tenant’s housing element of their universal
credit award or payment towards rent arrears, landlords will be
notified of the DWP’s decision. The DWP says they will be unable to
provide the reason for any decision to turn down the request
“because of data sharing regulations and claimant confidentiality.”
Social landlords are also
able to apply for a a managed payment to landlord as part of the
housing costs verification process using the UC Landlord Portal or
by using the form issued by universal credit that requests housing
cost details.
There are three types of
alternative payment arrangements (APA) which universal claimants or
their landlords may request
- a managed payment to landlord of
the housing element
- more frequent payments, and
- split payments.
A managed payment of
housing costs to the landlord is the first priority in any request
for an APA.
The second priority will be
a request for more frequent payments which, where appropriate, will
be considered by universal credit decision makers.
The third priority will be
requests for split payment of an award between partners, where the
child elements can be paid directly to the partner who has the main
child responsibilities.
This will only considered
in certain circumstances, such as where there is;
- financial abuse where one partner
mismanages the universal credit payment
- where domestic violence is an
issue and the couple remain together in the same household,
but only one claim to Universal Credit is made
According to the latest
figures (September 2019) just 80 split payments have actually been
applied by DWP throughout the UK.
If the claimant meets the
criteria for either more frequent payment or split payment, a
managed payment to landlord of the whole of the housing element
will automatically be considered.
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