HomeUpdatesFinanceHuge shake-up to Universal Credit starting tomorrow could affect 90,000 recipients of benefits

Huge shake-up to Universal Credit starting tomorrow could affect 90,000 recipients of benefits

Huge shake-up to Universal Credit starting tomorrow could affect 90,000 recipients of benefits

Starting tomorrow, more than 90,000 benefit-eligible households will be required to make significant changes.

In July, households receiving child tax credits and employment and support allowance (ESA) will be required to convert to Universal Credit. You may be eligible to receive ESA benefits if a sickness or impairment hinders your ability to work. If you have a low income, the child tax credit is a benefit that can help with the expenses of raising a kid. But Universal Credit is taking the role of both benefits.

A planned migration procedure is being used to progressively transfer two million legacy benefit claimants to Universal Credit. November 2022 marked the official start of the controlled migration process, which had a successful pilot in July 2019.

Eligible households receiving tax credits and other legacy benefits are part of the process and will receive “migration notices” in the mail explaining how to switch to Universal Credit as it is not an automated transfer.

Only individuals claiming child tax credits and ESA will get requests to switch starting in July from the Department for Work and Pensions (DWP). Households must submit an application for Universal Credit no later than three months after obtaining their managed migration letter.

A NOTE OF ADVICE

The Department for Work and Pensions (DWP) has issued around 824,050 migration notices since March 2024. But the most recent data from the DWP shows that 184,120 people lost their benefits as a result of not acting upon migration warnings they got between July 2022 and March 2024. Since then, about 400,940 people have successfully applied for Universal Credit, while an additional 238,990 people are currently in the transfer process.

“DWP continues to cut people off from support they’re entitled to,” stated Ayla Ozmen, head of policy and campaigns at anti-poverty charity Z2K, in an interview with The Sun. “This is despite advice and anti-poverty organisations repeatedly sounding the alarm. Furthermore, rather than proceeding cautiously, it will expeditiously transition seriously ill and disabled recipients of Employment and Support Allowance to Universal Credit starting later this year. “

“So if you receive a migration notice, it’s vital that you act. You can either notify the Department that you require further time or submit a claim to Universal Credit. Find a local advice service to assist you if you’re unsure how to apply for Universal Credit or have questions regarding its operation. However, don’t dismiss it in any way.”

MANAGED MIGRATION PROGRESS

The government declared in January how many migration notices it would issue in the upcoming fiscal year. Prior to this date, the main objective was to notify households that were obtaining tax credits alone about migration.
However, in April, letters were sent to 110,000 people who were getting income support and another 120,000 people who were claiming tax credits along with housing benefit.

Beginning in June, more than 100,000 Housing Benefit-Only claimants were contacted. Beginning in July, more than 90,000 recipients of child tax credits and employment and support allowance (ESA) will be required to change.

In the meanwhile, starting in September, 20,000 jobseekers allowance (JSA) recipients will get correspondence. According to earlier reports from The Sun, anybody using tax credits who are older than the state pension age would be required to apply for either pension credit or universal credit starting in August.

The original proposal called for no relocation until 2028 for people receiving income-related ESA alone. But by the end of 2025, the DWP intends to switch these households on Universal Credit. 800,000 households will start receiving letters outlining the transition from ESA to Universal Credit in September 2024.

SUPPORT IN UNIVERSAL CREDIT CLAIMS

In addition to benefit calculators, there are several more resources available to assist those switching from tax credits to Universal Credit. Find your nearest Jobcentre by using the search form at find-your-nearest-jobcentre.dwp.gov.uk.

Additionally, Citizen’s Advice offers a free service called Help to Claim:

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

Advisors are also available online at citizensadvice.org.uk/about-us/contact-us/contact-us/help-to-claim/