Big change for 90,000 on benefits in huge Universal Credit shake-up from tomorrow – fail to act and you’ll lose £1,000s
MORE than 90,000 households on benefits will be asked to make a big change from tomorrow.
Households claiming employment and support allowance (ESA) and child tax credits will be asked to switch to Universal Credit in July.
ESA is a benefit that you can claim if an illness or disability is affecting your capacity to work.
Child tax credit is a benefit that helps with the costs of raising a child if you’re on a low income.
However, both benefits are being replaced by Universal Credit.
Two million claimants on legacy benefits are gradually making the move to Universal Credit under a process known as managed migration.
The managed migration process officially kicked off in November 2022 after a successful pilot in July 2019.
As part of the process, eligible households on legacy benefits, including tax credits, are sent “migration notices” in the post which tell them how to make the move to Universal Credit as it’s not automatic.
From July, the Department for Work and Pensions (DWP) will begin contacting only those claiming ESA and child tax credits, asking them to make the switch.
It’s vital that households apply for Universal Credit within three months of receiving their managed migration letter.
Failing to do this can result in your benefits being stopped.
What is managed migration?
ADVICE from Ayla Ozmen, director of policy and campaigns, at anti-poverty charity Z2K.
The DWP is stopping so-called “legacy benefits” for working-age people.
That means you won’t be able to claim benefits like income-related employment and support allowance, income support, tax credits, or housing benefit (unless you’re in temporary accommodation or supported housing).
Instead, you’ll need to claim Universal Credit.
The DWP is sending everyone currently getting these benefits a letter called a “migration notice”, giving you three months to claim Universal Credit.
If you don’t claim and don’t ask DWP for more time, your legacy benefits could be stopped – even if you’re not getting Universal Credit either.
That means you might not have anything to live on, and you’ll be at risk of building up debt on important bills like rent.
If you leave it too late to claim Universal Credit, you won’t be “repaid” for the gap either.
And you could also miss out on something called the transitional element.
Some people, including many disabled people, get less money under Universal Credit than under legacy benefits.
The transitional element means that you don’t face a sudden drop when you move to Universal Credit under managed migration, but instead it reduces over time.
But if you ignore your migration notice and later claim Universal Credit, it’s treated as a brand new claim – so you get no transitional element.
A WORD OF WARNING
Since March 2024, the Department for Work and Pensions (DWP) has sent nearly 824,050 migration notices.
However, according to the DWP’s latest figures, 184,120 individuals lost their benefits after failing to act on migration notices received between July 2022 and March 2024.
Some 400,940 individuals have since made successful claims for Universal Credit, and another 238,990 are still in the process of transitioning.
Ayla Ozmen, director of policy and campaigns at anti-poverty charity Z2K, told The Sun: “Despite advice and anti-poverty organisations repeatedly sounding the alarm, DWP continues to cut people off from support they’re entitled to.
“And far from taking a cautious approach, from later this year, it’s speeding up moving seriously ill and disabled people receiving Employment and Support Allowance over to Universal Credit.
“So if you receive a migration notice, it’s vital that you act.
“Either make a claim to Universal Credit, or tell the Department that you need more time.
“If you’re not sure how to claim, or are worried about how Universal Credit works, find a local advice agency to help you. But whatever you do, don’t ignore it.”
MANAGED MIGRATION PROGRESS
In January, the government announced the number of migration notices it plans to send out in the coming financial year.
Before this date, the focus was sending migration notices to households claiming tax credits-only.
However, 110,000 income support claimants and a further 120,000 claiming tax credits with housing benefit started receiving their letters in April.
Over 100,000 Housing benefit-only claimants started being contacted in June.
More than 90,000 people claiming employment and support allowance (ESA) and child tax credits will be asked to switch from July.
Meanwhile, 20,000 claimants on jobseekers allowance (JSA) will be contacted from September.
The Sun previously reported that, from August, those claiming tax credits who are over state pension age will be asked to apply for either Universal Credit or pension credit.
It was originally planned that those claiming income-related ESA alone would not be moved until 2028.
However, the DWP brought forward plans to move these households to Universal Credit by the end of 2025.
From September 2024, 800,000 households will begin to receive letters explaining how to move from ESA to Universal Credit.
HELP CLAIMING UNIVERSAL CREDIT
As well as benefit calculators, anyone moving from tax credits to Universal Credit can find help in a number of ways.
You can 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/.
Will I be better off on Universal Credit?
AROUND 1.4million people on legacy benefits will be better off after switching to Universal Credit, according to the government.
A further 300,000 would see no change in payments, while around 900,000 will be worse off under Universal Credit.
Of these, around 600,000 are expected to get top-up payments if they move under managed migration, so they don’t lose out on cash immediately.
The majority of those – around 400,000 – are claiming employment support allowance (ESA).
Around 100,000 are on tax credits while fewer than 50,000 each on other legacy benefits are expected to be affected.
Examples of those who may be entitled to less on Universal Credit according to the government include:
- Households getting ESA who and the severe disability premium and enhanced disability premium
- Households with the lower disabled child addition on legacy benefits
- Self-employed households who are subject to the Minimum Income Floor after the 12 month grace period has ended
- In-work households that worked a specific number of hours (e.g. lone parent working 16 hours claiming working tax credits
- Households receiving tax credits with savings of more than £6,000 (and up to £16,000)
But if they don’t switch in the future, they’ll risk missing out on any future increase to benefits and see payments frozen.
Those who move voluntarily and are worse off 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.
The clock starts ticking on the three-month countdown from the date of the first letter, and reminders are sent via post and text message.
There is a one-month grace period after this, during which any claim to Universal Credit is backdated, and transitional protection can still be awarded.