Warning for 90,000 on benefits over major Universal Credit shake-up as letter start hitting doormats this month

AROUND 90,000 benefits claimants could miss out on thousands of pounds of support if they don’t act this month.

The Department for Work and Pensions (DWP) is migrating people on legacy benefits to the Universal Credit system.

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Legacy benefit claimants are being migrated to Universal Credit and need to apply[/caption]

However, the process isn’t automatic, so anyone affected needs to actively apply for Universal Credit at the right time or their money could suddenly stop.

People affected have been receiving letters about migrating for almost two years.

According to the DWP’s figures, 184,120 individuals have already lost their benefits after failing to act on migration notices received between July 2022 and March 2024.

If you are still on legacy benefits, the DWP will send you a letter explaining what you need to do, and when you need to do it by.

This July, those letters will be landing on the doorsteps of the 90,000 people who currently receive the Income-related Employment Support Allowance with Child Tax credits.

Letters will also be going to anyone of pension age who currently receives tax credits. These people might be moved to either Universal Credit or Pension Credit, depending on their individual circumstances.

And in August, around 20,000 people on Income-based Jobseekers Allowance will start getting letters.

Then, from September, 800,000 households will begin to receive letters explaining how to move from ESA to Universal Credit.

The DWP says it is important that you do not do anything until you receive your letter, which is called a Universal Credit Migration Notice.

The notice tells you when you need to move to Universal Credit and gives you a deadline date to apply by.

The deadline will be three months after the letter arrives, and if you miss it, your payments will stop.

The DWP added that even if you’ve just renewed your tax credits, you still need to claim by the deadline you are given.

If you miss the deadline, you will also miss out on some important transitional arrangements.

For instance, getting your claim in on time means that some of the standard Universal Credit eligibility rules will not apply.

The DWP says that if you receive tax credits, you can make a Universal Credit claim even if you have money, savings and investments of more than £16,000. 

After 12 monthly assessment periods, normal eligibility rules will apply and you will not be eligible for Universal Credit if you still have more savings than this limit.

There is also transitional protection for people who get their claims in on time. 

Around 1.4million will be better off on Universal Credit, the Government calculates.

A further 300,000 will see no change in payments, while around 900,000 will be worse off.

However, if your Universal Credit award is less than your previous tax credits or benefits then you may be eligible for financial protection when you move across.

To be eligible for this you must:

• Only apply for Universal Credit once you have received your Migration Notice letter 
• Apply before the deadline date 
• Have no changes in your circumstances

Those who move voluntarily won’t get these top-up payments and could lose cash. 

Those who miss the deadline and later make a claim may also not get this transitional protection either, although there is a one-month grace period where protection can be awarded and backdated.

GET HELP SWITCHING

The Government has been urged to better support benefit claimants transferring from older “legacy” benefits onto the Universal Credit (UC) system replacing them. 

A report published by the Public Accounts Committee (PAC) urged the DWP to help claimants make the switch, while reiterating warnings over fraud and error rates and expressing scepticism on UC’s hoped-for economic benefits.

Dame Meg Hillier MP, chair of the committee, said: “If the transition from legacy benefits to UC fails even an apparently small proportion of people, it will lead to real world misery for thousands. 

“The DWP must make sure that people are not cast into financial hardship due to a bureaucratic change, and that robust support is in place for those vulnerable claimants who need it most.”

HELP CLAIMING UNIVERSAL CREDIT

Anyone moving from tax credits to Universal Credit can find help in a number of ways.

If you have a question about claiming Universal Credit or have a problem getting online, you can call the number in your letter.

You can also visit your local Jobcentre by searching at find-your-nearest-jobcentre.dwp.gov.uk/.

There’s also a free service called Help to Claim from Citizen’s Advice:

• England: 0800 144 8 444
• Scotland: 0800 023 2581
• Wales: 08000 241 220

You can also get help online from advisers at citizensadvice.org.uk/about-us/contact-us/contact-us/help-to-claim/.

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