Thousands of Tax Credit claimants will start to be moved over to Universal Credit from next week.
The Department for Work and Pensions (DWP) recently confirmed that from April more people claiming Tax Credits only would receive letters inviting them to claim Universal Credit.
These letters are called "Migration Notices".
It is part of the Government's "managed migration" plan which hopes to move all "legacy benefit" claimants onto Universal Credit by the end of 2029.
The DWP said notices would be sent out to over 500,000 claimants currently in receipt of only Tax Credits - this benefit is paid by and managed by HMRC.
From April, those claiming just Tax Credits in Avon, Somerset, and Gloucester received their letters and in May people in East London and Cheshire also started to receive requests to move to Universal Credit.
From June next week, Tax Credit claimants in Greater Manchester, the North East, and the Yorkshire and Humber areas will start receiving requests.
The LA Welfare Direct bulletin recently published that by September this year, “move to UC activity will be taking place in all regions of Great Britain” and it will be in every jobcentre by March 2024.
Around two million people still claim legacy benefits in the UK.
There are six benefits which are classed as "legacy benefits" and are to be stopped in the future - with most set to be halted by the end of 2025.
These include:
- Working Tax Credit
- Child Tax Credit
- Income-based Jobseeker’s Allowance (JSA)
- Income Support
- Income-related Employment and Support Allowance (ESA)
- Housing Benefit
Those claiming income-related Employment Support Allowance have had their managed migration pushed back and the Government aims to have these claimants moved over by 2028-29.
What do you need to do if you get a Migration Notice?
When it is your turn to be moved across to Universal Credit, you'll receive a migration notice in the post.
This will give you a three-month deadline to claim Universal Credit - you will not be moved over automatically you will have to make a claim.
If you don't start a claim for Universal Credit within this time, your current benefits will automatically stop.
Once you make a Universal Credit claim, your old benefits will be stopped and you'll have to wait five weeks for your first Universal Credit payment to arrive.
You’ll normally have to claim online, but you can also use the Universal Credit Migration Notice helpline on 0800 169 0328 if necessary - you can also ask your local Job Centre for help with your claim.
Some legacy benefits, including Housing Benefit, Income Support, income-related Employment and Support Allowance and income-based Jobseeker's Allowance, will "run on" for two weeks to help bridge that gap.
If you claim tax credits, your entitlement will end as soon as you claim Universal Credit according to the Government website.
You don't have to wait until your migration letter to move onto Universal Credit - you can move over early if you wish.
Tax Credit claimants are advised to seek advice before moving over as some people may be worse off on Universal Credit.
The DWP claims around 55% of legacy benefit claimants will be better off on Universal Credit, and roughly 35% would be worse off.
In these instances, you may 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.
