The exact dates when benefits will be STOPPED amid the Universal Credit shake-up
A BIG change to the welfare system will result in thousands of people's benefits being cut off over the next year.
Around 400,000 claimants will be moved from so-called legacy benefits to Universal Credit this year.
Those receiving tax credits have already begun to move under what is known as managed migration.
Those receiving income support, housing benefit and employment support will now be switched this year under a new timetable unveiled by the government earlier this month.
After receiving a migration notice, people on these older style benefits must make their claim for Universal Credit within three months.
If they don't, their old benefits, typically worth thousands of dollars a year, will automatically be terminated without replacement.
In addition to missing out on payments, they also run the risk of missing out on additional protection, which means they will not receive a lower amount under the new system.
Recent figures show that around 16,000 people on tax benefits asked to move have failed to make a claim for Universal Credit after three months.
This is evident from analysis of government data by anti-poverty organization Z2K.
On average they are about £359 a month worse off.
Managed migration restarted in 2022 after a lull in the pandemic.
Last year this increased with 117,690 notices sent and the Government aims to have 2 million into Universal Credit by the end of this year.
From April, those receiving income support with tax credits and housing benefit will receive letters asking them to apply for Universal Credit.
Those claiming housing benefit only will receive migration notices from June.
Anyone receiving Employment and Support Allowance (ESA) and child tax credits will be asked to switch from July.
Meanwhile, Jobseeker's Allowance (JSA) applicants will be contacted from September.
From August, those receiving tax credits who have reached state pension age will be asked to apply for Universal Credit or Pension Credit, depending on their situation.
Those claiming only income-related ESA will not be moved until 2028.
In 2024/2025, the DWP estimates that approximately 440,000 people will be contacted, with the following breakdown:
- Tax discounts and rent allowance 120,000
- Income support – 110,000
- Rent allowance only – 100,000
- Income-based ESA with child tax credits – 90,000
- Income-based JSA – 20,000
- Tax credits only – 10,000
Experts have previously warned that managed migration puts vulnerable people at risk of losing money.
Top bosses at charities including Mind, The Trussell Trust, Turn2Us and the Money and Mental Health Policy Institute said in 2022 that around 700,000 people with mental health problems, learning disabilities and dementia could struggle to take part in the trial.
More than 20 organizations have called on the government to halt managed migration to fix flaws in the system that could allow those at risk to fall through.
A DWP spokesperson previously told The Sun: “We want to help everyone transition to Universal Credit as smoothly as possible, as part of our work to streamline the benefits system, and recent research has shown that tax credit claimants are able to get through navigate Universal Credit. system to submit a new claim with minimal support.
“Benefits are only stopped as a last resort. Within a three-month period, claimants are contacted several times to remind them of the action they need to take. Support is also available through our dedicated migration helpline.”
What is managed migration and who is affected by it?
Universal Credit replaces six benefits under the old social security system, commonly called legacy benefits. They are:
- Working tax credit
- Child tax credit
- Income-related jobseeker's allowance (JSA)
- Income support
- Income-related Employment and Support Allowance (ESA)
- Housing benefit
Now, if you have any of these benefits, you can choose to switch, but you may not be better off.
You'll need to carefully consider what switching will mean for your money, as you won't be able to go back once you have Universal Credit.
Using an online benefits calculator can help you compare and is free and easy to use by charities such as Turn2Us And Entitled toand it is also worth asking them for advice.
You can switch to Universal Credit if there is a change in your circumstances, such as a move, a change in working hours or if you have a baby.
But eventually everyone will switch to Universal Credit.
This is known as 'managed migration' and plans for this were put on hold due to the coronavirus pandemic.
Help with claiming Universal Credit
In addition to benefit calculators, anyone switching from tax benefits to UC can find help in a number of places.
You can visit your local employment center, but search for find-your-nearest-jobcentre.dwp.gov.uk/.
There is also a free service called Help to Claim from Citizen's Advice:
You can also get help from advisors online at www.citizensadvice.org.uk/about-us/contact-us/contact-us/help-to-claim/.
Am I better off with Universal Credit?
Around 1.4 million people will be better off with Universal Credit, the government estimates.
Another 300,000 will see no change in payments, while around 900,000 people will be worse off under Universal Credit.
About 600,000 are expected to receive additional payments if they move under managed migration, so they don't immediately lose out on money.
The majority of them – around 400,000 – are entitled to Employment Support Allowance (ESA).
About 100,000 people benefit from tax credits, while fewer than 50,000 of them are expected to experience other inheritance benefits.
Examples of those who the government believes may be entitled to less on Universal Credit include:
- Households receive ESA who and the Severe Disability Premium and Enhanced Disability Premium
- Households with a child with a lower disability receive a supplement on top of the old benefits
- Self-employed households that fall below the minimum income limit after the 12-month grace period expires
- Working households who have worked a certain number of hours (e.g. singles).
- parent who works 16 hours and is entitled to working tax credits
- Households receiving tax benefits with savings over £6,000 (and up to £16,000)
- But they could miss out on any future benefit increases and see payments frozen.
Those who voluntarily move and are worse off will not receive these additional payments and could lose money.
Those who miss the deadline and file a claim later may also not receive this transitional protection.
The clock starts ticking on the three-month countdown from the date of the first letter, and reminders are sent via mail and text message.
After this, there will be a one-month grace period during which any Universal Credit claim will retroactively expire and transitional protection can still be granted.
The latest data from the DWP shows that 61,130 people have made a claim for UC, and 39,920 have been offered transitional protection.
Another 40,540 are still in the process of switching to the new benefit.