Iona Bain - Universal Credit Managed Migration
As six legacy benefits are being moved over to Universal Credit, Iona Bain joined us in studio to give her advice for people thinking about making the switch
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WHAT IS UNIVERSAL CREDIT?
Universal Credit is a benefit payment for people in or out of work. It replaces benefits that the Department for Work and Pensions (DWP) calls 'legacy benefits', things like Housing Benefit, Child Tax Credit, Income Support and income-based Jobseeker’s Allowance. Previously, if you wanted to claim these benefits, you'd apply separately for each one that applied to you. Now, the Government say that Universal Credit aims to make the welfare system simpler by replacing these legacy benefits with a single monthly payment.
At the moment, if you’re currently claiming legacy benefits and there are no changes to your circumstances, you'll continue getting them until the DWP asks you move to Universal Credit, that move is called 'managed migration'. For those who are new to claiming benefits, you can no longer make a new claim for legacy benefits individually, you'll immediately need to start using Universal Credit.
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SWITCHOVER TIMETABLE
These are the current dates that letters are due to be sent to people who need to move to Universal Credit. The dates below will give you a rough idea of when you’re likely to receive it:
By March 2024
- Tax Credits Only
From April 2024
- Tax credits with Housing Benefit
- Income Support only
- Income Support with Housing Benefit
- Income Support with Tax credits
- Income Support with Housing Benefit and Tax credits
From June 2024
- Housing Benefits only
From July 2024
- Income-related Employment Support Allowance with Child Tax credits
From August 2024
- Tax credits (pension age)
From September 2024
- Income-based Jobseekers Allowance
Current Date TBC
- Employment and Support Allowance (ESA) only
- Employment and Support Allowance with Housing Benefit
Source: Government UC Move Campaign
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There are some exceptions for those just receiving housing benefit. If you're currently claiming this and you're 66 years old and over, you live in temporary accommodation provided by a council because you were homeless or you live in supported accommodation including refuges, hostels, extra care housing and some sheltered housing then you won't be asked to move over to Universal Credit, instead, you'll continue to receive support with housing costs through your existing Housing Benefit.
Other benefits, such as Personal Independence Payment (PIP), will also stay the same.
People can move over to Universal Credit at any time voluntarily. If you have had a look and found that you are entitled to more on the new system than what you're getting now, you don't have to wait for your migration letter, but if you do move over to Universal Credit, there's no going back, and moving over voluntarily means you're not entitled to transitional protection.
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THINGS TO BE AWARE OF BEFORE SWITCHING TO UNIVERSAL CREDIT
The move over to Universal Credit isn't automatic, so you need to follow the instructions on the letter within three months of receiving it, however if you receive your migration notice, don't panic! Use that three months to go over everything any make sure you're ready.
The first thing to consider is if you're eligible for something called 'transitional protection' before you start claiming Universal Credit. Transitional protection is a temporary top-up payment available for some people moving from the older legacy benefits system to Universal Credit. It is only added for people who have gone through the managed migration process and where they would be entitled to less under Universal Credit than from their legacy benefits. If your indicative Universal Credit is lower than your total current legacy benefits amount, you will receive a transitional protection element to make up the difference.
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Example 1
Mary is currently entitled to £300 a month on legacy benefits and her indicative Universal Credit amount is £200 a month. When she goes through the managed migration process she will be paid £100 a month as a transitional protection element to top up her Universal Credit.
Transitional protection never increases, it only reduces, so further down the line if your Universal Credit entitlement goes up, your transitional protection element will be reduced by the same amount
Example 2
If Mary's rent increases by £50 and her Universal Credit award becomes £250 a month, her transitional protection element will be reduced by £50, meaning she still receives £300 Universal Credit in total.
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To make sure you're getting the maximum amount of transitional protection, first check that you're getting everything you're entitled to to begin with, because this will change the amount you're entitled to on Universal Credit. Secondly, consider what might happen to you in the three month period you have to make the switch to Universal Credit. If you're moving house in that period and your rent is increasing, then make the switch after you've moved, so that you get the increased transitional protection. Also, to make sure you're not out of pocket for longer than necessary, if you receive Tax Credits, start your Universal Credit claim just after you've received a Tax Credit payment so that the timeframe between your last Tax Credit payment and your first Universal Credit payment is as short as possible.
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FURTHER ADVICE
More help and support is available from the following organisations:
- can help with tailored advice if you're considering or have been asked to move to Universal Credit
- have advice on what Universal Credit is and the help and support available
- Click to view the Universal Credit campaign from the UK Government
