Those who claim old-style Department for Work and Pensions (DWP) benefits are slowly being moved over to Universal Credit.
The DWP has released official guidance on how finances will be affected for the claimants, who are currently receiving legacy benefits.
Universal Credit is phasing out the following six benefits:
- Child Tax Credit
- Housing Benefit
- Income Support
- Income-based Jobseeker’s Allowance (JSA)
- Income-related Employment and Support Allowance (ESA)
- Working Tax Credit
A migration notice will be posted to those impacted by the change, letting them know that their old-style benefits will be ending.
Households in Medway, Bolton, Truro, Falmouth, Harrow and Northumberland have started to receive migration letters in the post.
Some claimants will benefit from an increase when moved to Universal Credit, others will receive the same amount - and others will be worse off.
For those who will see a reduction in their benefits, payments will be temporarily maintained at the same level under a policy known as "transitional protection".
However, his only applies if you wait until you receive the migration notice.
But what claimants will receive a Universal Credit payment boost?
The following groups are most likely to see a boost to their benefits when moved over to Universal Credit, reports Birmingham Live :
- Employment and Support Allowance (ESA) Support Group who are not in receipt of the Severe Disability Premium
- People who are in work who have been getting Housing Benefit only or Working Tax Credit and Housing Benefit
- Those who do not work sufficient hours to claim Working Tax Credit
- People who have not been claiming all of the legacy benefits that they are eligible for
To work out if you'll be better off, use a benefit calculator online - then also seek free advice from a charity such as Turn2Us.
Calculators only give a rough idea - so it is important to speak to an expert as well.
It is important to do your research first, if you're thinking about moving yourself across to Universal Credit, as you can't move back to legacy benefits.
The DWP have stated: "On Universal Credit, most people will be entitled to the same amount they received from their previous benefits or more.
"If the amount you are entitled to on your existing benefits is more than you will get on Universal Credit, a top-up is available. This is called transitional protection.
"You can only get this top-up if you have received a Migration Notice letter from DWP and claim by the deadline date on your letter.
"If your circumstances change before you make your claim, this may affect the amount you get. You should claim as soon as possible to make sure the amount you are currently entitled to can be protected.
"Any transitional protection you receive as part of your Universal Credit claim may stop if you have a change in circumstances once you've made your claim.”
According to the DWP, 55% of the 2.6 million people claiming legacy benefits would receive extra money on Universal Credit, while around 900,000 would receive less.
Claimants impacted by the change should expect to receive a Migration Notice, which will inform people that they need to move over to Universal Credit and explain how this process will work.
