MORE than 90,000 benefit households will be asked to make a big change from tomorrow.
Households claiming Employment and Support Allowance (ESA) and Child Tax Credit will be asked to switch to Universal Credit in July.
ESA is a benefit that you can claim in case of illness or disabilities affects your ability to work.
Child tax credit is a benefit that helps with the cost of raising a child if you have a low income.
However, both benefits are replaced by Universal Credit.
Two million older benefit claimants are gradually switching to Universal Credit in a process known as managed migration.
The guided migration process was officially launched in November 2022 following a successful pilot project in July 2019.
As part of the process, eligible households receiving legacy benefits, including tax credits, are sent a ‘migration notice’ in the post telling them how to switch to Universal Credit, as it is not automatic.
From July, the Department for Work and Pensions (DWP) will start contacting only those claiming ESA and child tax relief to ask them to make the change.
It is important that households apply for Universal Credit within three months of receiving their managed migration letter.
Failure to do so may result in your benefits being stopped.
What is managed migration?
ADVICE from Ayla Ozmen, Director of Policy and Campaigns, anti-poverty charity Z2K.
The DWP is stopping so-called “older people’s benefits” for people of working age.
This means you won’t be able to claim benefits such as income-related employment and support allowance, income support, tax credits or housing benefit (unless you’re in temporary accommodation or supported housing).
You will need to apply for Universal Credit instead.
The DWP sends everyone currently in receipt of these benefits a letter called a ‘migration notice’, giving you three months to claim Universal Credit.
If you don’t claim and ask the DWP for more time, your current benefits may be stopped – even if you don’t get Universal Credit.
This means you may not have enough to live on, and you’re at risk of racking up debt on important bills like rent.
If you leave it too late to claim Universal Credit, the gap won’t “pay off” either.
And you could also leave out something called a transition element.
Some people, including many disabled people, get less money under Universal Credit than under older benefits.
The transitional element means you won’t face a sudden drop when you switch to Universal Credit as part of a managed migration, but will instead reduce over time.
However, if you ignore your migration notice and claim Universal Credit later, it will be treated as a completely new claim – so you won’t get any transitional element.
A WORD OF WARNING
Since March 2024, the Department for Work and Pensions (DWP) has sent almost 824,050 migration notices.
However, according to the latest DWP figures, 184,120 individuals lost their benefits after failing to respond to migration notices received between July 2022 and March 2024.
Around 400,940 individuals have since successfully applied for Universal Credit and a further 238,990 are still in the process of switching.
Ayla Ozmen, director of policy and campaigns at anti-poverty charity Z2K, told The Sun: “Despite advice and anti-poverty organizations repeatedly sounding the alarm, the DWP continues to cut people off from the support they are entitled to.
“And far from a cautious approach, from the end of this year it is speeding up the movement of seriously ill and disabled people on Employment and Support Allowance onto Universal Credit.
“So if you receive a migration notice it is vital that you act.
“Either claim Universal Credit or tell the Department you need more time.
“If you’re not sure how to claim or worried about how Universal Credit works, find a local advice agency to help you. But whatever you do, don’t ignore it.”
CONTROLLED MIGRATION PROGRESS
In January, the government announced the number of migration notices it planned to send in the coming financial year.
Prior to this date, the focus was on sending migration notices to households that only claimed tax relief.
However, 110,000 income support claimants and another 120,000 tax credit claimants with housing benefit started receiving letters in April.
More than 100,000 applicants for benefits for housing only began to be contacted in June.
More than 90,000 people claiming Employment and Support Allowance (ESA) and Child Tax Credit will be asked to switch from July.
Meanwhile, 20,000 Jobseeker’s Allowance (JSA) claimants will be contacted from September.
The Sun previously reported that from August those claiming tax relief who are over the state pension age will be asked to claim Universal Credit or Pension Credit.
It was originally planned that those claiming only income-related ESA would not be moved until 2028.
However, the DWP has put forward plans to move these households onto Universal Credit by the end of 2025.
From September 2024, 800,000 households will start receiving letters explaining how to switch from ESA to Universal Credit.
HELP CLAIM UNIVERSAL CREDIT
As well as benefit calculators, anyone switching 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 is 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 citizenadvice.org.uk/about-us/contact-us/contact-us/help-to-claim/.
Will I be better off with Universal Credit?
Around 1.4 million people on original benefits will be better off after switching to Universal Credit, the government says.
Another 300,000 would see no change in payments, while around 900,000 will be worse off under Universal Credit.
Around 600,000 of them are expected to receive additional payments if they go under managed migration so they don’t lose cash immediately.
Most of them – around 400,000 – claim Employment Support Allowance (ESA).
Around 100,000 is on tax credits, while less than 50,000 on each of the other legacy benefits is expected to be affected.
Examples of those who may be entitled to less universal credit, according to the government, include:
- Households receive ESA who and the Severe Disability Premium and the Enhanced Disability Premium
- Households with a less disabled child are added on older benefits
- Self-employed households subject to the minimum income after the end of the 12-month grace period
- Households of workers who have worked a certain number of hours (e.g. a single parent working 16 hours with employment tax credit
- Households receiving tax relief with savings of more than £6,000 (and up to £16,000)
But if they don’t switch in the future, they risk losing any future benefit increases and having payments frozen.
Voluntary movers who are worse off will not receive these top-up payments and could lose their cash.
A person who misses the deadline and makes a claim later does not have to get transitional protection either.
The clock starts ticking three months from the date of the first letter and reminders are sent by mail and text.
There is then a one-month grace period during which any claim to Universal Credit is out of date and transitional protection can still be granted.