EXECUTIVE DECISION NOTICE SERVICE AREA: FINANCE Exchequer Services SUBJECT MATTER: UNIVERSAL CREDIT DELIVERY PARTNERSHIP AGREEMENT - 28 OCTOBER 2013 TO 31 MARCH 2014 DECISION: To authorise the Council to enter into a second Delivery Partnership Agreement with the Department of Work and Pensions and to continue as a Pathfinder Authority to test the implementation of Universal Credit on a specified category of claimants from 28 October 2013 to 29th March 2014, as detailed in Appendix One of this report. DECISION TAKER(S): .. Councillor Jim Fitzpatrick DESIGNATION OF DECISION First Deputy (Finance and Performance) TAKER(S): DATE OF DECISION: 17 October 2013 REASON FOR DECISION: The Council and the Department of Work and Pensions (DWP) are now in a position to extend the activities currently undertaken as a Pathfinder authority. The Delivery Partnership Agreement (DPA) provides the mechanism to approve the activities to be undertaken as a Pathfinder from 28 October 2013 to 29 March 2014. The DPA protects the Council's position by outlining the expected tasks and funding arrangements to be undertaken by local authority staff during the second Pathfinder period and termination of the Agreement should it be necessary. ALTERNATIVE OPTIONS Universal Credit is a new central Government Policy. REJECTED (if any): Pathfinder is the mechanism by which Universal Credit will be tested ahead of national roll-out. We could have chosen not to be Pathfinder authority however we would not have had the opportunity to influence the process and prepare claimants and stakeholders for this major policy change. CONSUL TEES: None FINANCIAL IMPLICATIONS: There are no additional direct financial implications from this report. Any costs in relation to Universal Credit Pathfinder (Authorised by Borough will be met from existing revenue budgets. Treasurer) LEGAL IMPLICATIONS: The Council has power to enter into the agreement under section 1 of the Localism Act 2011. The report details that (Authorised by Borough whilst the claimant category affected by the pilot will receive Solicitor) Universal Credit earlier; the Council has sought reassurance from the DWP that claimants will be no worse off. The DWP have confirmed this to be the case. The Delivery Partnership Agreement outlines the parties obligations under the Pathfinder and confirms the Council's willingness to DPAv06d - 1- participate. CONFLICT OF INTEREST: None DISPENSATION GRANTED BY Not Applicable STANDARDS COMMITTEE ATTACHED: . ACCESS TO INFORMATION: Background papers are available from lIys Cookson, Assistant Executive Director - Exchequer, [email protected], 0161 3424056. Signed ...... ~ .. ~.. ~.7¥-±l .............................. Date ....I.J .. l..~.~.l.~.}.. : ..... coun'Jillor Jim Fltzpatrick- First Deputy (Finance and Performance) DPAv06d ·2- / EXECUTIVE DECISION REPORT SERVICE AREA: FINANCE Exchequer Services SUBJECT MATTER: UNIVERSAL CREDIT DELIVERY PARTNERSHIP AGREEMENT- 28 OCTOBER 2013 TO 31 MARCH 2014 DATE OF DECISION: 17 October 2013 DECISION TAKER Councillor Jim Fitzpatrick - First Deputy . REPORTING OFFICER: lIys Cookson - Assistant Executive Director - Borough Treasurer (Exchequer and Support Services) REPORT SUMMARY: This report outlines the progress undertaken by local authority staff and DWP during the first phase of Pathfinder which commenced on 29 April 2013. The expected activities to be undertaken during the second Pathfinder phase from 28 October 2013 to 29 March 2014 are contained in the Delivery Partnership Agreement which now requires formal approval. RECOMMENDATIONS: To authorise the Council to enter into a second Delivery Partnership Agreement with the Department of Work and Pensions and to continue as a Pathfinder Authority to test the implementation of Universal Credit on a specified category of claimants from 28 October 2013 to 29th March 2014, as detailed in Appendix One of this report. JUSTIFICATION FOR The Council and the Department of Work and Pensions (DWP) DECISION: are now in a position to extend the period of operation of Pathfinder activities by a further six months. The Delivery Partnership Agreement (DPA) provides the mechanism to approve the activities to be undertaken as a Pathfinder from 28 October 2013 to 29 March 2014. The DPA protects the Council's position by outlining the expected tasks and funding arrangements to be undertaken by local authority staff during the second Pathfinder period and termination of the Agreement should it be necessary. ALTERNATIVE OPTIONS Universal Credit is a new central Government Policy. REJECTED (if any): Pathfinder is the mechanism by which Universal Credit will be tested ahead of national roll-out. We could have chosen not to be Pathfinder authority however we would not have had the opportunity to influence the process and prepare claimants and stakeholders for this major policy change. CONSUL TEES: None. FINANCIAL IMPLICATIONS: There are no additional direct financial implications from this report. Any costs in relation to Universal Credit Pathfinder will (Authorised by Borough be met from existing revenue budgets Treasurer) LEGAL IMPLICATIONS: The Council has power to enter into the agreement under section 1 of the Localism Act 2011. The report details that DPAv06d - 3 - (Authorised by Borough whilst the claimant category affected by the pilot will receive Solicitor) Universal Credit earlier; the Council has sought reassurance from the DWP that claimants will be no worse off. The DWP have confirmed this to be the case. The Delivery Partnership Agreement outlines the parties obligations under the Pathfinder and confirms the Council's willingness to participate. RISK MANAGEMENT: The risks are contained in Section 7 of this report. LINKS TO COMMUNITY The support and advice provided to claimants and Landlords PLAN: during Pathfinder links with Prosperous Tameside and Supportive Tameside themes. ACCESS TO INFORMATION: Background papers are available from lIys Cookson, Assistant Executive Director - Exchequer, [email protected], 0161 3424056. DPAv06d -4- 1 Background 1.1 The Welfare Reform Act, 2012, legislates for the biggest change to the welfare system for over 60 years and introduces a wide range of welfare reforms such as Universal Credit, the abolition of Council Tax Benefit, under occupancy charges (the bedroom tax), and reforms for disabled claimants in moving from Disability Living Allowance (DLA) to Personal Independence Payments (PIP). 1.2 One of the main elements of the Welfare Reform Act is the introduction of Universal Credit (UC) to provide a single streamlined benefit. Universal Credit includes child tax credit, working tax credits, Employment Support Allowance (ESA), Job Seekers Allowance (JSA) , Income Support and Housing Benefit. Applications will only be received on-line and will be assessed by the Department of Work and Pensions (DWP). The DWP has administered UC from April 2013 and will continue to do so until UC is rolled out nationally on a phased basis through to the end of 2017. 1.3 The purpose of Pathfinder is to trial UC in a live environment ahead of national roll-out. Upon the basis of preparing and supporting residents and taking the opportunity to shape and influence the delivery of UC as much as possible, the decision was taken for Tameside to be a Pathfinder authority and trial UC in specific postcode areas and on a specific claimant category. 1.4 A key issue in the decision to become a Pathfinder authority was the concern that there was the potential for claimants to be worse off if they lived in a Pathfinder area than if they claimed legacy benefits and lived in a non-Pathfinder area. The Permanent Secretary, Robert Devereaux gave a commitment that there would be no cash loss for any claimant involved in Pathfinder. 2 Introduction 2.1 Pathfinder activities commenced in Tameside on 29 April 2013 and is due to end on 27 October 2013. The operation of activities to support the implementation of Pathfinder in Ol6, Ol7, M43 and SK16 postcode areas was detailed in the Delivery Partnership Agreement (DPA) which was approved alongside an Operational Readiness Certificate by Executive Decision on 26 April 2013. 2.2 The purpose of the DPA is to formalise the agreement to work with DWP on Pathfinder activities. The DPA includes the management information to be collected on UC, data protection and freedom of information requirements, outlines the tasks expected to be undertaken by both parties, funding arrangements and termination arrangements should this be necessary by either the Councilor the DWP. 2.3 In order to continue with Pathfinder activities a further DPA is required. The original DPA expires on 27 October 2013 and therefore a new DPA is required for activities which will take place from 28 October 2013 to 29 March 2014. 2.4 Three other Greater Manchester authorities also became Pathfinders in testing the new Universal Credit benefit and also operate Pathfinder activities under a DPA. Oldham Warrington and Wigan Councils went live in July 2013. A further six Councils and Job Centre Plus (JCP) Offices are to commence Pathfinder activities between October 2013 and March 2014. The six areas are: Inverness, Rugby, Harrogate, Bath, Hammersmith and Shotton. 2.5 Universal Credit will continue to be administered by the DWP to the specified claimant category in Ashton, Droylsden and Dukinfield beyond October 2013. DWP have agreed to continue to fund some of the Pathfinder activities undertaken to support residents such as DPAv06d - 5- personal budgeting support.