The Department for Work and Pensions (DWP) is currently in the process of migrating millions of people on six ‘legacy’ benefits over to Universal Credit. This migration process is a major change that impacts eight million people who were previously receiving Income Support and Tax Credits with Housing Benefit, ESA (Income Based) with Child Tax Credit, Tax Credits, and JSA. Individuals who were on ESA (Income Based) with Child Tax Credit in July, Tax Credits (Pension Aged including mixed aged couples) in August, and JSA (Income Based) in September are among those who have received letters notifying them of the switch to Universal Credit.
The switchover to Universal Credit started last year with a focus on tax credits, and the DWP reported that 130,000 people made the transition initially. However, concerns have been raised about the lack of assistance provided to vulnerable individuals during the migration process. The transition to Universal Credit is reliant on individuals making the application themselves, which can be challenging for some.
Charity Contact for families with disabled children provided insight into the process, stating that individuals will receive a “migration notice” in writing informing them that their legacy benefits will be ending. They will then have a deadline three months from the date on the migration notice to make a claim for Universal Credit. If individuals fail to claim Universal Credit by the deadline day, they will have an additional month to make the claim, known as the “final deadline day.” It is important for individuals to request an extension before their deadline day if needed.
The DWP may agree to extend the deadline day if there are valid reasons, such as illness or needing more time to seek assistance. However, it is crucial for individuals to take action promptly to avoid any interruptions in their benefit payments. Failure to switch to Universal Credit by the final deadline day may result in individuals missing out on transitional protection and potentially losing out on financial support.
During Work and Pensions Topical Questions in the House of Commons earlier this year, it was revealed that individuals could be losing out on £3,200 a year by failing to switch their benefits to Universal Credit. Approximately a quarter of people were not applying for the change, highlighting the importance of raising awareness about the migration process and providing adequate support to those in need.
A report from the Institute for Fiscal Studies (IFS) examined the impact of the changes from the Department for Work and Pensions and found that households with one adult above and one adult below state pension age were significantly worse off under the Universal Credit system compared to legacy benefits. These households were described as losing out by more than £4,000 per year under the Universal Credit system, emphasizing the need for additional support for vulnerable groups during the transition.
The report also highlighted that couples with children are more likely to benefit from Universal Credit compared to the legacy system, with 72% gaining at least £200 a year. However, families receiving disability benefits, mixed-age couples, the self-employed, and those failing a harsher assets test are among those who may be worse off under the Universal Credit system. The IFS suggested that a future government may need to consider permanently compensating these families to ensure they are not left worse off in the long run.
As the migration process continues, it is essential for individuals receiving benefits from the DWP to stay informed and take action promptly to switch to Universal Credit. The DWP is providing guidance and support to help individuals navigate the transition, but it is crucial for individuals to proactively engage in the process to avoid any disruptions in their benefit payments.
For official advice from the Department for Work and Pensions on the migration to Universal Credit, individuals can visit the DWP website for more information and resources to assist with the transition. Stay informed and be proactive to ensure a smooth transition to Universal Credit and continue to receive the financial support needed.