Minimum Income Guarantee early steps deliverability paper

Appendix A: Ending of the five week wait: summary of the impacts of each option against key areas.

Option 1: Applicant applies to DWP for a UC advance and also applies to Social Security Scotland for a “5 week wait” payment

Applicant

Negative: Would need to apply to two different government departments

Negative: May spend SG grant and still struggle as DWP recover the UC advance

Policy

Positive: client will receive a grant that does not need to be paid back

Positive: client can use grant to pay back all or some of the UC advance

Negative: client’s future UC payments could still be reduced

Social Security Scotland / Scottish Government

Negative: would require a new application service

Negative: would require additional admin resource

DWP

Negative: may increase the volume of UC advance applications

Negative: increased volume of applications may increase DWP debt

Positive: no changes to DWP processes

Local Authorities

Not applicable

Legislation

Clarification on purpose and nature of “5 week wait” payment is needed to identify suitable legal powers

Data

Negative: new data on value of UC advance would need to be shared between DWP and Social Security Scotland

Technology

Negative: new customer facing application system will be needed

Negative: changes to backend processing system will be required

Negative: changes to data sharing systems will be needed

Risks

Negative: Will require agreement and collaborative working with DWP

Negative: Will require resource and funding to build new service

Negative: Will require additional admin resource in Social Security Scotland

Negative: Will require resource and finance to update IT systems

Negative: Applicant may still suffer hardship from deductions from UC payments

Legal position TBC

Opportunities

Not applicable

Option 2: Applicant can no longer apply to DWP for an advance and must apply to Social Security Scotland for a “5 week wait” payment

Applicant

Positive: would only need to make one application

Positive: no deductions made to future UC awards

Negative: would need to apply to a different government department

Policy

Positive: client will receive a grant that does not need to be paid back

Positive: client’s future UC awards will not be reduced

Social Security Scotland / Scottish Government

Negative: would require a new application service

Negative: new application service will need to support a fast turnaround time

Negative: would require additional admin resource

DWP

Positive: will remove need for DWP to administer UC advance applications for Scottish applicants

Positive: will decrease DWP debt

Negative: some changes to DWP processes and guidance

Local Authorities

Not applicable

Legislation

Clarification on purpose and nature of “5 week wait” payment is needed to identify suitable legal powers

Data

Positive: new data on value of UC advance would need to be shared between DWP and Social Security Scotland

Technology

Negative: new customer facing application system will be needed

Negative: changes to backend processing system will be required

Either changes to data sharing systems may be needed (TBC) no new data would need to be shared between DWP and Social Security Scotland (TBC)

Risks

Negative: Will require agreement and collaborative working with DWP

Negative: Will require resource and funding to build new service

Negative: Will require additional admin resource in Social Security Scotland

Negative: Will require resource and finance to update IT systems

Negative: Applicant may still suffer hardship from deductions from UC payments

Legal position TBC

Opportunities

Not applicable

Option 3: Applicant applies to DWP for a UC advance and also applies to their local authority for a “5 week wait” crisis grant

Applicant

Negative: would need to apply to two different government departments

Negative: may spend crisis grant and still struggle as DWP recovers UC advance

Policy

Positive: client will receive a grant that does not need to be paid back

Positive: client can use grant to pay back all or some of the UC advance

Negative: client’s future UC payments could still be reduced

Social Security Scotland / Scottish Government

Not applicable

DWP

Not applicable

Local Authorities

Positive: existing Scottish Welfare Fund application service could be used

Negative: will increase burden on local authorities

Negative: changes will be needed to Scottish Welfare Fund processes and guidance

Legislation

Scottish Welfare Fund legislation may be a suitable vehicle. However, further clarity on purpose and nature of “5 week wait” payment is needed

Data

Negative: new data may need to be shared between DWP and LAs

Technology

Negative: some changes to customer facing application system will be needed (TBC)

Negative: some changes to backend processing system may be required (TBC)

Negative: changes to data sharing systems may be needed (TBC)

Risks

Negative: Will require agreement and collaborative working with LAs

Negative: May require resource and funding to update IT systems

Negative: Will require additional admin resource in LAs

Negative: May require resource and finance to update IT systems

Negative: Applicant may still suffer hardship from deductions from UC payments

Opportunities

Positive: Uses existing service

Option 4: Applicant can no longer apply to DWP for an advance and must apply to their local authority for a “5 week wait” crisis grant

Applicant

Positive: would only need to make one application

Positive: no deductions made to future UC awards

Negative: would need to apply to a different government department

Policy

Positive: client will receive a grant that does not need to be paid back

Positive: client’s future UC awards will not be reduced

Social Security Scotland / Scottish Government

Not applicable

DWP

Not applicable

Local Authorities

Positive: existing Scottish Welfare Fund application service could be used

Negative: will increase burden on local authorities

Negative: changes will be needed to Scottish Welfare Fund processes and guidance

Legislation

Scottish Welfare Fund legislation may be a suitable vehicle. However, further clarity on purpose and nature of “5 week wait” payment is needed

Data

Positive: no new data would need to be shared between DWP and Local Authorities (TBC)

Technology

Negative: some changes to customer facing application system will be needed (TBC)

Negative: some changes to backend processing system may be required (TBC)

Negative: changes to data sharing systems may be needed (TBC)

Risks

Negative: will require agreement and collaborative working with Local Authorities

Negative: may require resource and funding to update IT systems

Negative: will require additional admin resource in Local Authorities

Negative: may require resource and finance to update IT systems

Negative: application may still suffer hardship from ongoing deductions from UC awards

Opportunities

Positive: Uses existing service

Option 5: Applicant applies to DWP for a UC advance and Scottish Ministers reimburse the value of the advance to DWP directly

Applicant

Positive: no additional action required by client

Positive: no/smaller deductions made to future UC awards

Policy

Positive: client’s future UC awards will not be reduced

Positive: no additional burden placed on applicant

Positive: simple customer journey

Social Security Scotland / Scottish Government

Positive: will not require a new public facing application service

Negative: may require changes to finance and accounting processes

Negative: will require negotiated delivery agreement with DWP

DWP

Positive: will reduce DWP debt

Positive: will reduce debt DWP recovery admin resource

Negative: will require changes to DWP processes

Negative: will require ongoing delivery agreement with SG.

Local Authorities

Not applicable

Legislation

Negative: Further work is required on legal position if this is a preferred option

Negative: would likely require primary UK and Scottish legislation based on existing UC Scottish flexibilities

Data

Negative: new data on value of UC advance would need to be shared between DWP and SG

Negative: new financial and accounting data would need to be shared with DWP

Technology

Negative: changes to finance systems will be required

Negative: changes to data sharing systems may be needed (TBC)

Risks

Negative: Will require agreement and collaborative working with DWP

Negative: Will require resource and funding to update IT systems

Negative: Legal position TBC

Negative: Changes to UK UC policy may put ongoing delivery/support at risk

Negative: Implementation timetable likely to be extended (based on experience of Split payment work)

Negative: Creates a double payment for the same period

Negative: may not be negotiable with DWP

Opportunities

Positive: no additional burden on applicant, Social Security Scotland

Positive: no need to build new application service

Positive: no additional burden on Social Security Scotland or Local Authority operations

Positive: fully meets policy intent