How Will The Homeless Get Universal Credit?

With the roll out of Universal Credit Full Service set to accelerate in October, Homeless Link looked at the options that are available to ensure people can receive their Universal Credit payment.

Universal Credit Full Service is the new system for applying, managing and receiving welfare benefits. New welfare claimants in Universal Credit Full Service areas receive one Universal Credit payment, which replaces Housing Benefit, income-related Employment and Support Allowance (ESA), income-based Jobseeker’s Allowance (JSA), Child Tax Credits and Working Tax Credits and Income Support.

People currently on legacy benefits will be transferred to Universal Credit if they are in a Universal Credit Full Service area and have a relevant change in circumstances. Although only around 100 Job Centre Plus currently have full-service, this will increase by around 50 Job Centre Plus a month from October, with national roll-out expected to be completed in September 2018. Any remaining legacy claimants will be moved onto Universal Credit from July 2019 to March 2022.

Universal Credit has been designed so that the majority of claimants will receive payment directly into a bank, building society or credit union account.

But many people will find it difficult to open a bank account if they are rough sleeping, sofa surfing, or have no fixed abode. This is because of the problems in obtaining an adequate proof of address that a bank will accept. It can also be equally hard for a person living in a hostel and/or supported housing to open an account, due to a lack of supporting documentation.

However, the Government website says that Universal Credit can be paid in a different way if there are problems opening a bank account and that Job Centre Plus Work Coaches should help to explain the process of receiving payment. Homeless Link has been in discussions with DWP who confirmed that recent internal communications have been issued to Work Coaches to remind them that where a claimant is unable to open or manage a transactional account, DWP can pay Universal Credit into a Post Office card account.

Homeless Link and others have helped shape the ‘Change Account’ that has many of the benefits of a bank account, such as a debit card, dedicated sort code and account number, direct debits and budgeting wallets. There is no credit check associated with opening a Change Account, so individuals with a poor credit history or anyone who has been made bankrupt could still qualify. Details of the benefits and associated costs of the Change Account can be found here: https://www.thechangeaccount.com/.

If you have any problems or successes in opening accounts, please contact Chris Brill at chris.brill@homelesslink.org.uk  so that they can share this learning with our members and advise DWP when and where things are not working. For more on this issue go to www.homelesslink.org.uk