THOUSANDS of households are having their current benefits axed under a Government scheme.
Those on so-called “legacy benefits” such as tax credits are being moved on to Universal Credit through Managed Migration.
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The Government plans to move all claimants onto Universal Credit by the end of March 2025.
The process began in May last year and came 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.
Once you receive a letter, you have three months to move across, or you could lose your existing benefits.
For example, if you received a letter in July, you have until October to move over to Universal Credit.
The exact date will be included on your migration notice.
There are a number of locations that have already received notices and should have moved over to Universal Credit already.
A number of others should have received notices but still have time to make the move.
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This is the full list of locations and when they started receiving letters:
From April, 2023
- Avon
- Somerset
- Gloucester
From May, 2023
- East London
- Cheshire
From June, 2023
- Greater Manchester
- North East Yorkshire
- Humber
From July, 2023
- Kent
- North London
- Durham and Tees Valley
- East Anglia
From August, 2023
- West Scotland
- West Yorkshire
- Staffordshire
- Derbyshire
- South London
From 2022
- Harrow
- Bolton
- Falmouth
- Medway
- Cornwall
- Northumberland
Households across Great Britain will continue to receive Managed Migration notices from September this year.
However, the Department for Work and Pensions (DWP), which is carrying out the scheme, has not specified the exact months the remaining areas will be contacted.
In most cases, you will be better off following a move from legacy benefits to Universal Credit.
But you might not always, so it’s worth waiting until you absolutely have to move.
Where your Universal Credit payment is lower than your legacy benefits entitlement, you will usually be eligible for a top-up payment known as Transitional Protection.
This means your Universal Credit entitlement will be the same as your legacy benefit entitlement at the point you move.
Either way, the Government has estimated around 700,000 tax credit claimants could be better off on Universal Credit.
You can use free online benefits calculators on charities’ websites, such as Turn2Us and EntitledTo to work out if you’d benefit from a move.
It’s also worth contacting charities directly to ask them for advice on whether a move to Universal Credit could see you better or worse off.
What is Universal Credit and how much can I get?
Universal Credit is a Government benefit designed to cover the cost of everyday essentials and combines a number of old-style benefits into one monthly payment.
Whether you are eligible depends on your individual circumstances.
You may be entitled to the benefit if you meet all of the following criteria:
- You’re on a low income or out of work
- You’re 18 or over (there are some exceptions if you’re 16 to 17)
- You’re under State Pension age (or your partner is)
- You and your partner have £16,000 or less in savings between you
- You live in the UK
Universal Credit payments are made up of a standard allowance and then various additional payments that depend on your circumstances.
This is how much you will get as your standard allowance each month:
- Single, under 25 – £292.11
- Single, 25 or over – £368.74
- Couple, joint claimants both under 25 – £458.51 (for both)
- Couple, joint claimants, one or both 25 or over – £578.82 (for both)
You may also get additional payments depending on your circumstances.
You may be able to get a top-up if you have children:
- For those with a first child born before April 6, 2017, the extra amount is £315
- For those with a child born on or after April 6, 2017 or second child and subsequent child, the extra amount is £269.58
- For those with a disabled child, the lower rate additional payment is £146.31 and the higher rate is £456.89
If you have a disability you could get an extra amount depending on your circumstances:
- For those deemed to have limited capability for work, the extra amount is £146.31
- For those deemed to have limited capability for work or work-related activity, the extra amount is £390.06
Universal Credit claimants can get an additional amount if they’re caring for a severely disabled person for at least 35 hours a week.
The amount you get is £185.86.
You can also get an increased work allowance:
- The higher work allowance (no housing amount) for someone claiming Universal Credit with one or more dependent children or limited capability for work is £631
- The lower work allowance for someone claiming Universal Credit with one or more dependent children or limited capability for work is £379.
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