MORE than 90,000 households receiving benefits will have to make a major 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 in the event of illness or disease. incompetence affects your ability to work.
Child tax credit is a benefit that helps with the costs of raising a child if you have a low income.
However, both benefits are being replaced by Universal Credit.
Two million people receiving benefits are gradually moving to Universal Credit through a process called ‘managed migration’.
The managed migration process officially started in November 2022 after a successful pilot in July 2019.
As part of the process, households eligible for legacy benefits, including tax breaks, will receive a ‘migration notice’ in the post telling them how to make the switch to Universal Credit, as this does not happen automatically.
From July, the Department for Work and Pensions (DWP) will only contact those who are claiming ESA and Child Tax Credits to ask them to make the switch.
It is vital that households apply for Universal Credit within three months of receiving their managed migration letter.
Failure to do so may result in your benefits being stopped.
What is managed migration?
OPINION from Ayla Ozmen, director of policy and campaigns at anti-poverty charity Z2K.
The DWP will stop so-called ‘legacy benefits’ for people of working age.
This means that you cannot claim benefits such as income-related employment and support allowance, income support, tax credits or housing allowance (unless you stay in temporary accommodation or supported housing).
Instead, you should apply for Universal Credit.
The DWP will send everyone who is currently receiving one of these benefits a letter called a ‘migration notice’, giving you three months to apply for Universal Credit.
If you don’t make a claim and DWP doesn’t ask for more time, your old benefits could be stopped, even if you don’t receive Universal Credit either.
This means you may be left with nothing to live on and risk accumulating debt for important bills, such as rent.
If you are late in applying for Universal Credit, you will not get the gap ‘refunded’ either.
And you could also be missing something called the transition element.
Some people, including many disabled people, receive less money through Universal Credit than through the old benefits.
The transition element means that you will not experience a sudden drop when you move to Universal Credit under managed migration, but rather the drop will decrease over time.
But if you ignore your migration notice and later apply for Universal Credit, it will be treated as a whole new application. You will then not receive a transitional arrangement.
A WARNING
Since March 2024, the Department for Work and Pensions (DWP) has issued almost 824,050 migration notices.
However, according to the latest figures from the DWP, 184,120 people lost their benefits after failing to respond to migration notices received between July 2022 and March 2024.
Around 400,940 people have since applied for Universal Credit, with a further 238,990 people still in the process of transitioning.
Ayla Ozmen, director of policy and campaigns at anti-poverty charity Z2K, told The Sun: “Despite advice and repeated warnings from anti-poverty organizations, DWP continues to deny people the support they are entitled to.
“And instead of a cautious approach, the transition of seriously ill and disabled people receiving Employment and Support Allowance to Universal Credit will be accelerated from later this year.
“So if you receive a migration notification, it is critical that you take action.
“Make a claim to Universal Credit, or tell the Department you need more time.
“If you’re not sure how to make a 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 how many migration messages it wanted to send in the coming financial year.
Before this date, the emphasis was on sending migration notices to households that only claimed tax credits.
However, in April, 110,000 applicants for income support and another 120,000 people who claimed tax credits with rent allowance received their letters.
In June, more than 100,000 applicants for housing benefit alone were approached.
More than 90,000 people claiming Employment and Support Allowance (ESA) and child tax credits will be asked to switch from July.
From September, 20,000 applicants for a jobseeker’s benefit (JSA) will be approached.
The Sun previously reported that people who reach retirement age from August and are claiming tax credit will have to apply for Universal Credit or pension credit.
Originally, it was intended that those claiming only income-related ESA would not be moved until 2028.
However, the DWP has put forward plans to move these households onto Universal Credit by the end of 2025.
From September 2024, 800,000 households will receive letters telling them how to switch from ESA to Universal Credit.
HELP CLAIMMING UNIVERSAL CREDIT
In addition to benefit calculators, anyone switching from tax credits to Universal Credit can find help in a number of ways.
You can visit your local job center by searching find-your-closest-jobcentre.dwp.gov.uk/.
There is 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 from advisers online at citizensadvice.org.uk/about-us/contact-us/contact-us/help-to-claim/.
Am I better off with Universal Credit?
About 1.4 million people receiving old benefits will be better off after the switch to Universal Credit, according to the government.
A further 300,000 people would see no change in their payments, while around 900,000 people would 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, receive a work support benefit (ESA).
About 100,000 people receive tax credits, while fewer than 50,000 people receiving other legacy benefits are expected to be affected.
Examples of people who, according to the government, are entitled to less Universal Credit are:
- Households receiving ESA and the premium for severe disability and the increased premium for disability
- Households with the lowest allowance for disabled children on the old benefits
- Self-employed households who fall below the minimum income threshold after the 12-month grace period has expired
- Working households that have worked a certain number of hours (for example, a single parent who works 16 hours and is entitled to employment discounts)
- Households receiving tax credits with savings over £6,000 (and up to £16,000)
But if they don’t switch in the future, they risk missing out on a future benefit increase and having their payments frozen.
Those who move voluntarily and are worse off will not receive these additional payments and may lose money.
Anyone who misses the deadline and files a claim later may also not be entitled to this transitional protection.
The clock starts ticking on a three-month countdown from the date of the first letter, and reminders are sent via post and text message.
This will be followed by a one-month grace period during which any claim to Universal Credit will be backdated and transitional protection can still be awarded.