Martin Lewis has explained how people on “legacy” benefits can check if they'd be better off moving to Universal Credit.
There are thought to be three million people still claiming old-style benefits, all of which will be moved over to Universal Credit eventually.
“Legacy” benefits include Jobseekers’ Allowance, Employment and Support Allowance, Child Tax Credit, Housing Benefit, Income Support and Working Tax Credit.
The government wants to move all claimants on these payments to Universal Credit by late 2026 - but you can ask to go over sooner, if you think you’d be better off.
Speaking on his latest Martin Lewis Money Show live on ITV, the MoneySavingExpert founder explained who may be able to claim more - and how to check.
He said: “Some people, yes, you will get more. Some are getting in touch with me after reading something I’d written and said they’d got twice as much after moving to Universal Credit.
“So the key areas, if you work and pay rent, especially in the city, you’re in that sweet spot where Universal Credit may be better.
“Or you’re a relatively high earner who gets benefits, you may be better off.”
Martin recommended first using a free benefit calculator online to check if you might get more on Universal Credit.
Some of the most popular online calculators include ones from Turn2us, Policy in Practice and entitledto.
The Mirror also has a free benefits calculator you can use here:
After using a calculator, you should then also seek advice from a free organisation such as Turn2Us or Citizens Advice so they can verify your circumstances.
It is important to get free advice first as you can’t switch back to older benefits after moving to Universal Credit - even if you find out you’re getting less.
Martin explained: “Use a benefit calculator, but don’t see that as gospel. And this is why this is such an important warning on this one.
“If you ask to be moved to Universal Credit, you can’t go back, even if you find out you’ll be getting less.
“So if the calculator shows it might be worth it, then go and get one-on-one free help.
“You can’t ask the government to calculate. Even then, it’s worth asking a few questions.
“With Universal Credit, there’s things called deductions. That’s where certain debts, council tax, rent and energy.
“You can have up to 25% taken off your standard Universal Credit to pay them, which means even if you’re getting more, it may not be worth moving off the old benefits because of those deductions.
“Also, Universal Credit, first payment takes five weeks although you can ask for an advance.”
A lot has changed with Universal Credit over the last few months, so it is worth doing another check on a benefits calculator if it has been a while since you last used one.
The taper rate, which is how much your Universal Credit gets reduced by for every pound you earn through work, was reduced back in November 2021.
It has been lowered from 63p to 55p - meaning in-work Brits will keep more of their pay.
The work allowance, which is the amount some claimants can earn before the taper kicks in, has also been raised by £500 per year.
