People across the UK are being urged to be aware of benefits changes coming into force this month.
The Department for Work and Pensions (DWP) is responsible for the switch and is encouraging anyone currently receiving benefits to keep an eye out for further information about how the change could impact them.
To help people understand the process and why it’s happening, UK Debt Expert has teamed up with the DWP to explain what to expect and to avoid any interruption to benefit payments.
What is Universal Credit?
Universal Credit is a payment designed to help with living costs.
It’s paid monthly for people living in England, Wales and Northern Ireland and twice a month for some people in Scotland.
You may be eligible for Universal Credit if you’re on a low income or need help with living costs.
To claim you must live in the UK, be over 18 but under state pension age and have £16,000 or less in money, savings and investments.
You can find out more about Universal Credit eligibility here.
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What benefits will be replaced with Universal Credit?
Six benefits and tax benefits are being replaced by Universal Credit.
This includes:
- Child Tax Credit
- Working Tax Credit
- Housing Benefit
- Income Support
- Income-based Jobseeker’s Allowance (JSA)
- Income-related Employment and Support Allowance (ESA)
If you receive any of these benefits, look out for a letter from the DWP informing you of the change and your next steps.
Do I need to do anything?
Yes, if you currently receive benefits you will need to submit a claim as part of the change to Universal Credit. The change won’t be automatic, but don’t worry, you’ll receive a letter informing you of next steps.
This letter – called a Migration Notice – will explain what you need to do and when. It’ll also give information about the help available to continue receiving debt help from the government.
Once you’ve received your Migration Notice, you’ll need to apply for Universal Credit to continue to get financial support.
It’s important to pay attention to the deadline in the letter. You’ll need to make the claim within three months of the letter date.
If you don’t apply for Universal Credit in that time period, your benefit payments could stop.
Your current benefits will end as soon as you submit your claim for Universal Credit and you will not be able to go back to your existing benefit once you have claimed.
How much Universal Credit will I receive?
If your Universal Credit entitlement is less than your previous benefits or tax credits, you may be eligible for financial protection when you make the move.
This additional amount is known as ‘transitional protection’. We’ve shared an example below to show how it works:
Gordon is entitled to £700 on his existing benefits or tax credits.
His Universal Credit entitlement is £600.
That means Gordon’s transitional protection will be £100.
To be eligible for transitional protection:
- You must only apply for Universal Credit once you’ve received your Migration Notice
- You must apply before the deadline stated in the letter
- Your circumstances must be the same
You can find out more about how payments are protected here.
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When will I receive my Migration Notice letter?
The DWP has been sending Migration Notice letters to people since the start of the year.
You may already have received yours if you receive:
- Tax Credits only and are below state pension age
- Tax Credits with Housing Benefit
- Income Support (including Income Support only, Income Support with Tax Credits, Income Support with Housing Benefit and Income Support with Housing Benefit and Tax Credits)
- Housing Benefits only
- Income-related Employment Support Allowance (ESA) with Child Tax Credits
- Tax Credits (if you’re of state pension age and are asked to move to Pension Credit)
If you receive any of the following benefits, keep an eye out for your letter in the keeping weeks and months:
- Tax Credits (if you’re of state pension age and are asked to move to Universal Credit)
- Income-based Jobseekers Allowance (JSA)
- Employment and Support Allowance (ESA) only
- Employment and Support Allowance (ESA) with Housing Benefit
What help is available?
There is lots of support available to help you with your move, including if you need help with your Universal Credit application or managing your income until you receive your first Universal Credit payment.
Visit gov.uk/ucmove for more information.
