A MAJOR change to benefits is set to affect millions of people.
The move to the new welfare system where you get Universal Credit is starting for many people on legacy benefits.
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These includes tax credits, job seekers allowance and income support.
Around 2.6million people are estimated to still be on these old style benefits.
The government is aiming to move all claimants to Universal Credit is by the end of 2024.
Managed migration, where people are invited to move from the old to new system, began in May with 500 people in Medway and Bolton being sent letters.
And now some people in the areas of Truro and Falmouth are being invited to move to Universal Credit too.
Anyone who has a change of circumstances can already be switched over, for example, if moving house or having a baby.
Around 1.4million on benefits could be better off now by moving on to Universal Credit, to the tune of £220 a month on average.
Anyone in this circumstance can move now – they don’t have to wait to be invited.
But you should check very carefully before moving that you will be better off as you can’t move back.
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Anyone who doesn’t move on to Universal Credit through choice or a change of circumstances will eventually be invited to switch.
This is called managed migration and is being rolled out slowly with the goal of getting everyone on to the new benefit by the end of 2024.
A free online benefits calculator can help you compare if you’ll be better off or not by moving over.
You can find them from charities such as Turn2Us and EntitledTo, and it’s also worth asking them for advice.
Citizens Advice also has a Help to Claim service to support Universal Credit claims.
Around 900,000 won’t be better off and must wait to be invited to ensure they get top up payments that mean they won’t lose out in they short term.
A further 300,000 will see no change to the amount they get, according to government estimates.
Exactly when you’ll be invited if you don’t choose to move, or switch through a change in circumstance will depend.
So far it is just some claimants in the following four areas being moved: Medway, Bolton, Truro and Falmouth.
But more are expected to follow.
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 think you’ll be better off you can start making a Universal Credit claim and your old benefits will end.
You will have a wait for your first Universal Credit payment, which could be up to five weeks and could leave you short.
You can get an advance, which is interest-free, but you’ll pay this back in instalments from future payments which will reduce how much you get each month.
