Millions will see their benefit payments change soon as the Department for Work and Pensions begin the next period of managed migration.
Managed migration is the process of moving people from six “legacy” benefits to Universal Credit.
The plans to move people over to Universal Credit will affect people claiming six types of support:
- Child Tax Credit
- Housing Benefit
- Income Support
- Income-based Jobseeker’s Allowance (JSA)
- Income-related Employment and Support Allowance (ESA)
- Working Tax Credit
Some people may be better off by moving over to Universal Credit and can opt in to change over, while some will also see themselves worse off.
Some people may also be changed over if their circumstances change. For example, if they move to a new address or change working hours.
The DWP guidance says: "On Universal Credit, most people will be entitled to the same amount they received from their previous benefits or more.
“If the amount you are entitled to on your existing benefits is more than you will get on Universal Credit, a top-up is available. This is called transitional protection.
"You can only get this top-up if you have received a Migration Notice letter from DWP and claim by the deadline date on your letter. If your circumstances change before you make your claim, this may affect the amount you get.
“You should claim as soon as possible to make sure the amount you are currently entitled to can be protected. Any transitional protection you receive as part of your Universal Credit claim may stop if you have a change in circumstances once you've made your claim."
Who will receive less on Universal Credit?
These are the types of claimants who will receive less money on Universal Credit than they do on their current benefits:
- Households in receipt of Employment and Support Allowance (ESA) who are in receipt of 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
- In-work households that worked a specific number of hours which discouraged progression in the labour market
- Households receiving tax credits with savings of more than £6,000 (and up to £16,000)
Who will receive more on Universal Credit?
These are the types of claimants who will receive more money on Universal Credit than they do on their current benefits:
- Employment and Support Allowance (ESA) Support Group who are not in receipt of the Severe Disability Premium
- In-work households receiving Housing Benefit only or Working Tax Credit and Housing Benefit
- People who do not work enough hours to receive Working Tax Credit
- Households who have not been claiming all the legacy benefits they are entitled to
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