More families who claim Tax Credits will start to be moved over to Universal Credit in the next few months, the Department of Work and Pensions (DWP) has announced.
From next month, the DWP says it will be stepping up so-called Migration Notices, which give legacy benefits claimants notice that they will be switched to Universal Credit. The DWP has confirmed that the two million people through to be claiming Working and/or Child Tax Credit are first on the list, and has warned that those who fail to act risk losing their current benefit entitlements.
The news comes after the DWP resumed its plans last year to move all claimants currently receiving legacy benefits over to Universal Credit by the end of 2024 after the switch was paused during the pandemic.
Read more: Universal Credit: What the announcements in the Budget mean for you if you claim benefits
A spokesperson said: "The move of claimants on legacy benefits to Universal Credit was paused during the pandemic following record demand so that DWP could process increased application volumes. Since its introduction some claimants have naturally moved to Universal Credit following a change in their circumstances and claimants have always been able to make a claim for Universal Credit if they wish to do so. The Department is now increasing the number of legacy claimants being asked to move to Universal Credit."
The migration to Universal Credit is being expanded from April and follows a 'discovery phase' when certain areas were chosen to pilot the benefits switch. Claimants living in Northumberland were among the first to be moved from legacy benefits to Universal Credit, with some people living in the county who are paid Income-Related Employment and Support Allowance, Income-Based Jobseeker’s Allowance, Working Tax Credit, Child Tax Credit, Income Support and Housing Benefit being required to move to Universal Credit to retain their financial support.
However, the DWP has confirmed that the initial focus will be on Tax Credit claimants, although the aim is that all legacy benefits claimants will be moved to Universal Credit by the end of 2024.
The DWP spokesperson said: "By migrating to Universal Credit, with the support of the Department for Work and Pensions, claimants will continue to receive the benefit they are entitled to through a future-proofed modern benefits system. Affected claimants will continue to receive the benefit they are entitled to through a more dynamic system that better reflects individual needs each month.
"Universal Credit provides a vital safety net for millions of people every year, enabling them to support themselves and their families through an agile digital system, and to access their benefits more easily as well as amend their claim should there be a change in their circumstances.
"In most cases, individuals will be better off following a move from legacy benefits to UC. However, where an individual’s entitlement to Universal Credit would be lower than their legacy benefits entitlement, in the vast majority of cases, they will be entitled to a top-up payment known as Transitional Protection. This means that their Universal Credit entitlement will be the same as their legacy benefit entitlement at the point they move."
Minister for Employment, Guy Opperman MP, whose constituency in Hexham was included in the Northumberland pilot, said: "Universal Credit has proven itself as a benefits system fit for the modern age, having dealt with the unprecedented demand of 3.7 million claims during the pandemic. The movement of those on legacy benefits to Universal Credit will ensure we can continue to provide the best level of support to benefit recipients through an effective and streamlined system.
“This Government remains committed to supporting the most vulnerable in society. I want to encourage all those who receive their migration notices to take action to ensure that they continue to receive the benefits they are entitled to.”
If you want to move to Universal Credit before you receive your Migration Notice, you can claim directly online or via the dedicated Universal Credit Migration Notice helpline on 0800 169 0328 or by visiting your local jobcentre. If you require more time to claim you can call the DWP free on 0800 169 0328.
For claimants requiring additional support to complete their application support is available including through Citizens Advice Help to Claim, which delivers step by step support to complete a UC claim.
Universal Credit was introduced in 2013 to end the complex web of six legacy benefits and was fully rolled out for all new claims in December 2018. It was introduced to replace a range of different benefits for unemployed and low-paid people and the aim was to make the system simpler. More than 5.8 million people claim in the UK, and of those people, around 40% of claimants have jobs.
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