Policy in Practice present local initiatives to support vulnerable households to the Utility Sector. -Make your social tariffs accessible through GOV.UK -Give holistic support to vulnerable consumers -Use data to provide more targeted support

1. Policy in Practice
Deven Ghelani The debt landscape in
response to a changing
policy environment

2. Agenda
• About Policy in Practice
• The impact of recent policy changes on low income households
• Initiatives to help support vulnerable consumers
• A national initiative to pool data on low income families

3. A team of
professionals
with extensive
knowledge of the
welfare system
who are
passionate about
making social
policy work
We help local
authorities use
their household
level data to
identify
vulnerable
households,
target support
and track their
interventions
We develop
engaging software
that helps people
to increase their
income, reduce
their costs and
helps them to
build their
financial
resilience

4. Our analysis of Budget 2018
• £1.7 billion boost to benefit support,
benefiting 2.5 million households (1.9m
with children & 600k with limited capability
for work)
• £1.0 billion to help 1.1m people migrating
onto Universal Credit (one-third of those
left to migrate)
• Employed households gain
• Self-employed, disabled, ill or out of work
don't gain
• Download our report

5. • 1.6 million people on Universal
Credit today
• A further 1.6m people moving onto
Universal Credit this year
• 2.0 million people moving on through
‘managed migration’ from 2020.
Universal Credit is rolling out fast

6. • UC work allowances: increase by £1,000 per year (from April 2019)
• Two week run-on for those on existing DWP benefits (JSA, ESA, IS) in addition to those
receiving housing benefit (from July 2020)
• Self employed: Protection extended to all; assessed on actual income (not MIF) for 12
months (from July 2019)
• Deductions from UC: Max rate down from 40% to 30% (from Oct 2019)
• Delay in increasing the earnings limit that triggers surplus earnings (remains the same
until 2020)
• Period for recovery of advances extended from 12 to 16 months (from Oct 2021)
• Slower roll-out of Universal Credit (end now Dec 2023)
• Plus increase in minimum wage & changes in tax allowances (from April 2019)
Budget 2018: Universal Credit changes

7. Direct payments to landlord to continue under UC,
if transferring from HB
End of UClive service
DEC2017
No new claims for UClive service after 01/01/18
UCadvances repayment period increases to 12 months
UCadvances increases to 100%of UCaward
JAN 2018
All claims migrated to UC
DEC2023
National Living Wage likely to rise to £8.80 p/hr
Housing benefit to 'run-on' for the first 2 weeks of UC
Payments for temporary accommodation improved
Support for Mortgage Interest (SMI) becomes a loan
National Living Wage set at £7.83 p/hr for over 25
Personal tax allowance up from £11,500 to £11,850
APRIL 2018
UNIVERSAL CREDIT ROADMAP
FEB2018
7day waiting period for UCabolished
2017
2018
2019
2020
2023
2018
2018
Mixed age couples must make new claims for UC
instead of Pension Credit
MAY2019
JULY2019
Self-employed familiies moving to UCwon’t be affected by
minimum income floor for the first 12 months of their claim.
Managed migration pilot will begin (starts in full end 2019)
2019
2019
2019
End of Full Service roll out
JAN 2019
New UCclaims for households with 2+
children
FEB2019
APRIL2019
NLW will increase to £8.21p/hr for over 25s
Personal tax allowance will increase to £12,500
Higher rate tax threshold will increase to £50,000
UCWork Allowances will increase by £1,000/year.
2019
APRIL 2020

8. Managed migration was scaled back for 2019, although DWP
will still have their hands full with around 1.6m people will still
move onto Universal Credit this year through natural migration.
The two-child limit to benefits would not apply to children
born before April 2017.
Flexible payments, including direct payments to landlords,
split payments, and the payment of Universal Credit going to
the main carer by default.
The Secretary of State is also looking at options to reduce the
five-week wait for new claimants, and accelerate childcare
payments to providers.
The High Court found in favour of four working mothers who
challenged how the DWP took account of monthly earnings.
New Secretary of State – A new direction..?

9. People are still going to be worse off

10. People are still going to be worse off

11. 111111
Initiatives to support vulnerable households
Build your social tariffs into a single assessment tool
License the tool for advisors to enable holistic support
Work with local authorities - use data to target support tariffs to vulnerable
consumers most in need
Work with central government - Learn more about national initiatives to match
data and pool enforcement resources.

12. Build your social tariffs into a single assessment tool, used by 10,000 people
each day via GOV.UK

13. License the tool for advisors to be able to provide holistic support, making it
more likely that they will be able to repay in future.

14. Work with local authorities: Use their administrative data to target support tariffs to vulnerable
consumers, including those less likely to reach out for support.

15. Cambridge councils
partnership with South Staffs
water.
Connected to DHPs:
£55k to 210 people
Removed the income
threshold.
Great partnership.
Work with local authorities

16. Reimagine Debt
A cross-departmental
initiative to improve
enforcement activity across
government and the private
sector.
Cabinet Office are pooling
data to better understand
households to improve
collection and better support
households in crisis.
Work with central government: Learn more about national initiatives to match
data and pool enforcement resources.

17. A new measure of poverty for the UK
Takes into account household income, and
household needs.
What is water poverty?
How can you eliminate it by 2030?
Water Poverty: A new measure

18. Summary
• People are still set to be worse off and Universal Credit is rolling out fast.
• Utility companies can help people to tackle their debts by giving people
access to social tariffs.
• You can offer them holistic support too. Your vulnerability teams can check
eligibility and increase take-up of local and national support, making it more
likely that your customers will be able to pay their bills.
• You can also work with central and local government to pool data and share
resources, helping you to target your support to reach the most vulnerable.
• What is your consumer vulnerability strategy? Have you developed specific
plans, and would you like to advance them through analytics?

19. www.policyinpractice.co.uk
Thank You
Deven Ghelani
deven@policyinpractice.co.uk
07863 560677
Oscar Jefferson
oscar@policyinpractice.co.uk
07444 158921

20. • 36,443 low income families
Proactively target support using admin data

21. • 36,443 low income families
• 217 families with children,
with a disability who are in
arrears
Proactively target support

22. • 36,443 low income families
• 217 families with children,
with a disability who are in
arrears
• Drilldown to get a single
view or support, arrears
and barriers to work
Proactively target support

23. • 36,443 low income families
• 217 families with children,
with a disability who are in
arrears
• Drilldown to get a single
view or support, arrears
and barriers to work
• Link into a financial support
tool
Proactively target support

24. Safeguarding Tariff /
Warm Home Discount:
• Data sharing between the DWP
and licensed gas and electricity
suppliers.
• Good initiative – how is it
working? Could be more
proactive and holistic!
Re-Imagine Debt:
• Central government initiative to
link data across local, national
and utility providers.
Central government initiatives

25. • Build your social tariffs into a single assessment tool, used by
10,000 people each day via GOV.UK.
• License the tool for advisors to be able to provide holistic support,
making it more likely that they will be able to repay in future.
• Work with local authorities: Use their administrative data to target
support tariffs to vulnerable consumers, including those less likely
to reach out for support.
• Work with central government: Learn more about national
initiatives to match data and pool enforcement resources.