Days left for 61,877 households on benefits to act or risk having their payments stopped in the New Year
THOUSANDS of households are being warned that they could see their benefit payments stopped in the New Year.
The government is currently in the process of moving all legacy claimants onto Universal Credit under a process known as managed migration.
The process began in May 2022 after a successful pilot in July 2019.
Eligible households are being contacted via letters in the post which tell them how to make the move from tax credits to Universal Credit.
Once you receive a letter, you have three months to move over, or you could lose your current benefits.
Failing to do this can result in benefits being stopped.
Exactly 61,877 received migration notices between the end of September and the beginning of October, meaning they have until New Year’s Eve to put in an application for Universal Credit.
Last year, thousands of households had their deadlines to move extended over the festive period by 30 days.
This was for those who needed to switch between December 11, 2023, and January 5, 2024.
However, the DWP has confirmed that it will not be extending this year’s deadline.
This means that households who received their letters at the end of September or the beginning of October risk having their benefits stopped if they don’t apply for Universal Credit before the end of the month.
The DWP said: “We support millions of people every year to get the help they are entitled to.
“Anyone moving to Universal Credit can get expert advice and support through our dedicated helpline and Help to Claim Service.”
Which benefits are stopping?
UNIVERSAL Credit is replacing six benefits under the old welfare system, commonly called legacy benefits. They 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 now, you can choose to move over – but you might not be better off.
You should consider carefully what moving over means for your money, as you can’t move back once you’re on Universal Credit.
Using an online benefits calculator, which is free and easy to use from charities such as Turn2Us and EntitledTo, can help you compare.
You may be moved to Universal Credit if your circumstances change, such as moving home, changing your working hours, or having a baby.
But eventually, everyone will be moved over to Universal Credit under the managed migration process.
A WORD OF WARNING
Between July 2022 and September 30, 2024, the Department for Work and Pensions (DWP) sent almost 1.4 million migration notices.
However, according to the DWP’s latest figures, 318,834 individuals lost their benefits after failing to act on migration notices received between July 2022 and June 2024.
That’s why it’s vital to act on your migration notice within the three month deadline.
Some 883,944 individuals have since made successful claims for Universal Credit, and another 166,594 are still in the process of transitioning.
Experts have previously warned that managed migration poses a risk to vulnerable people who face 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 with mental health problems, learning disabilities, and dementia could struggle to engage with the process.
More than 20 organisations have called on the government to halt managed migration to fix flaws in the system that could cause those at risk to fall through.
HELP CLAIMING UNIVERSAL CREDIT
As well as benefit calculators, anyone moving from tax credits to Universal Credit can find help in a number of ways.
You can visit your local Jobcentre by 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 8 444
- Scotland: 0800 023 2581
- Wales: 08000 241 220
You can also get help online from advisers at citizensadvice.org.uk/about-us/contact-us/contact-us/help-to-claim/.
Will I be better off on Universal Credit?
ANALYSIS by James Flanders, The Sun’s Chief Consumer Reporter:
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 would be worse off under Universal Credit.
Of these, around 600,000 can get top-up payments (transitional protection) if they move under the managed migration process, 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.
Those who move voluntarily and are worse off won’t get these top-up payments and could lose cash.
Those who miss the managed migration deadline and later make a claim may not get transitional protection.
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.
Examples of those who may be entitled to less on Universal Credit include:
- Households getting ESA 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)
Either way, if these households don’t switch in the future, they risk missing out on any future benefit increase and seeing payments frozen.