HUNDREDS of thousands of people receiving benefits must take action before the end of this month or risk having their payments stopped.
The government is moving two million people who were still receiving old benefits onto Universal Credit through ‘managed migration’.
Letters are being sent to those who qualify, asking them to switch.
But from the date the letter is sent, you only have three months to switch to Universal Credit.
If you do not do this, your right to benefits will be terminated.
Even if you decide to apply after the deadline, you still run the risk of losing the transitional protection, as you will only receive this protection if you apply before the deadline.
Read more about Universal Credit
Transitional protection is an additional benefit you receive if your Universal Credit benefit is lower than your existing old benefit to which you are entitled.
If you are unable to move to Universal Credit before the deadline, please call the Migration Notice helpline on 0800 169 0328 as soon as possible.
You may be given more time to file a claim if you have a good reason for the delay.
Approximately 120,000 households claiming tax credit with rent benefit received their letters about managed migration in April.
Meanwhile, 110,000 income support applicants also began receiving their letters.
If this applies to you, you have until the end of July to apply for Universal Credit, otherwise you risk losing your benefits.
This comes after poverty reduction charity Z2K warned more than 31,000 households that their benefits were being stopped because they had not taken action on migration notices they received between November 2022 and September 2023.
According to the report, this means the average household is missing out on around £4,130 a year.
In June, notifications of controlled migration were sent to people who only received housing benefits. This means that they have until the end of September to move.
From July, everyone receiving Employment and Support Allowance (ESA) and child benefit will have to switch.
People who are eligible for tax credit and have reached retirement age will have to apply for Universal Credit or Pension Credit from August.
People receiving benefits will receive a migration letter from September.
What is managed migration?
Universal Credit replaces six old benefits, under the old benefits system. These are:
- working tax credit
- child tax credit
- Jobseeker’s benefit based on income
- income support
- income-related employment and support benefit
- rent allowance
If you are entitled to one of these benefits, you can choose to switch before you receive a managed migration letter.
However, please be aware that you may not always get better and you may not be able to move back once you have moved to Universal Credit.
Using an online benefit calculator you can compare benefits from charities such as Turn2Us and EntitledTo. These calculators are free and easy to use. It is also worth asking them for advice.
Another circumstance where you may need to switch to Universal Credit is if your circumstances change, such as moving house, a change in working hours or the birth of a child.
Help with applying for Universal Credit
Anyone switching from tax credits to universal credit can find help calculating benefits in a number of places.
You can find your local Jobcentre by searching 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 online from advisers such as Citizens Advice. You can find your nearest branch using the online locator tool on their website.
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 of them are expected to receive additional benefits if they move under controlled migration, so that they do not immediately lose money.
The majority of them, around 400,000, receive a work support benefit (ESA).
About 100,000 people are receiving tax credits, while fewer than 50,000 people receiving other old benefits are expected to be affected.
Examples of people who are entitled to less Universal Credit according to the government include:
- 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 work 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 of over £6,000 (and up to £16,000)
But if they don’t switch in the future, they risk missing out on a future increase in their benefits and having their payments frozen.
People 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, counting down three months from the date of the first letter. Reminders are sent via post and text message.
This will be followed by a one-month grace period during which any claims for Universal Credit will be backdated and transitional protection can still be awarded.