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Liverpool Echo
Liverpool Echo
National
Levi Winchester Money Reporter & Jonathan Chubb

Universal Credit shake up restarts and what you need to know

For thousands of people across Merseyside today marks the restart of their benefits being moved across to Universal Credit.

The so-called migration process is expected to affect millions of people across the whole country. The process, reported by The Mirror, will see those who are currently claiming a number of different benefits being moved onto Universal Credit and the original benefits being phased out over time.

This includes income-based Jobseekers Allowance, Income Support, income-related Employment and Support Allowance and Housing Benefit. Around 500 people will be invited to be moved over during the first phase but the Department for Work and Pensions (DWP) says that number will increase over the next few months.

Read more: Universal Credit claimants could boost cash from DWP by up to £1,600

The process of moving the remaining 2.6million people still claiming the old-style benefits is due to take several months with the DWP expecting it all to be complete by Christmas Eve this year. Anyone who applies for any new benefits will automatically be moved onto Universal Credit.

So what will happen next and when will you know it's your turn to move?

First of all, you will receive a "migration notice" in the post. That notice will give you a three-month deadline to claim Universal Credit.

If you don't start a claim for the new style benefit within the time limit your current benefits will automatically stop. This could mean that you're left without any money or fewer pennies coming into the household.

Some people could be moved across sooner than they think if, for example, they start a new benefits claim or change their circumstances, such as moving home or changing their hours of work. You could also request to be moved across sooner if you think you'd be better off.

Not everyone will get more money on Universal Credit. The DWP claims 1.4million legacy claimants are set to be better off under the new system while 900,000 would be worse off. The other 300,000 will see no change in the amount they get.

We've got a guide here on how to check if you'll be better off on Universal Credit.

Once you make a Universal Credit claim, your old benefits will be stopped - you will then have to wait five weeks for your first Universal Credit payment to arrive.

Some legacy benefits will "run on" for two weeks to help bridge some of that gap.

This includes Housing Benefit, Income Support, income-related Employment and Support Allowance and income-based Jobseeker's Allowance.

With both types of tax credits, payments will stop as soon as you claim Universal Credit.

Universal Credit is replacing the following six benefits:

Working Tax Credit

Child Tax Credit

income-based Jobseeker’s Allowance (JSA)

Income Support

income-related Employment and Support Allowance (ESA)

Housing Benefit

Most of those being moved over to Universal Credit are on ESA (1.2million) or Tax Credits (1million).

200,000 are on Income Support and 100,000 on each of Housing Benefit and JSA.

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