Urgent warning for 230,000 benefit claimants to act before the end of the month or risk having their payments STOPPED
HUNDREDS of thousands on benefits need to take action by the end of this month or risk having their payments stopped.
The Government is moving two million people on old-style legacy benefits to Universal Credit through “managed migration”.
Letters are being sent to those eligible telling them to make the move across.
But you only have three months from the date the letter was sent to move to Universal Credit.
Fail to do this and you will have your benefit entitlement stopped.
Even if you decide to claim after the deadline, you can still lose out on transitional protection as you only get this if you claim by the deadline date.
Transitional protection is extra payments you receive if your Universal Credit payment is less than your existing legacy benefit entitlement.
If you won’t be able to move across to Universal Credit by the deadline date, phone the Migration Notice helpline as soon as possible on 0800 169 0328.
You may be able to get more time to make a claim if you have a good reason for the delay.
Around 120,000 households claiming tax credits with housing benefit started receiving their managed migration letters in April.
Meanwhile, 110,000 income support claimants also started receiving their letters.
It this is you, you have until the end of July to put in your claim for Universal Credit or risk being without benefits.
It comes after anti-poverty charity Z2K warned over 31,000 households receiving tax credits had their benefits stopped after failing to act upon migration notices received between November 2022 and September 2023.
It said it meant a typical household losing out on roughly £4,130 a year.
Managed migration notices were sent to those on housing benefit alone in June, meaning they have until the end of September to move.
Anyone getting Employment and Support Allowance (ESA) along with child tax credits will start being asked to switch from July.
Those claiming tax credits and over state pension age will be asked to apply for either Universal Credit or Pension Credit from August.
Meanwhile, those on Jobseeker’s Allowance will be issued with migration letters from September.
What is managed migration?
Universal Credit is replacing six legacy benefits, under the old benefits system. These are:
- working tax credit
- child tax credit
- income-based jobseeker’s allowance
- income support
- income-related employment and support allowance
- housing benefit
If you’re on any of these benefits, you can choose to move over before receiving a managed migration letter.
However, bear in mind that you might not be better off and you can’t move back once you’ve transferred to Universal Credit.
Using an online benefits calculator can help you compare and are free and easy to use from charities such as Turn2Us and EntitledTo, and it’s also worth asking them for advice.
One other circumstance where you might have to move over to Universal Credit is if you have a change in circumstances, like moving home, a change in working hours or having a baby.
Help claiming Universal Credit
As well as benefit calculators anyone moving from tax credits on to Universal Credit can find help in a number of places.
You can visit your local Jobcentre but 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 8444
- Scotland: 0800 023 2581
- Wales: 08000 241 220
You can also get help online from advisers such as Citizens Advice. You can find your nearest branch by using the online locator tool on its website.
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.