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Managed Migration to Universal Credit

What to look out for

Tuesday 3 September 2024

The process of managed migration, where existing “legacy” benefit claimants are required to transfer to Universal Credit will be picking up speed in the remainder of 2024 and it is important that you know what to look out for.

The Department of Work and Pension’s (DWP) recent media campaign “Keeping things smooth by making the move to Universal Credit” explains a lot of it but we have a few more hints and tips to keep you in the know.

Universal Credit was originally introduced in 2013 and replaced 6 benefits (now known as ‘legacy benefits’) These were:

  • Housing Benefit,
  • Child Tax Credits,
  • Working Tax Credits,
  • Income Support,
  • Income based Job Seekers Allowance and
  • Income based Employment and Support Allowance.

It was thought that as claimants’ circumstances changed and they needed to make a new claim for benefit they would naturally migrate to Universal Credit. However even with the rapid increase in Universal Credit claims in lockdown 2020, the process of transferring claimants from legacy benefits to Universal Credit has been slow, so the DWP has devised a timetable to transfer people onto Universal Credit. The system of Tax Credits will be brought to an end by April 2025.

What should I look out for?

The DWP will be issuing a Universal Credit Migration Notice to those who should transfer on to Universal Credit. Once you have received your Migration Notice you will have three months to claim Universal Credit. You will not be automatically transferred on to Universal Credit.

If you ignore the Migration Notice and you don’t take any action, your existing benefits will stop after the three-month deadline. If the stopped benefits include Housing Benefits it is likely that you will fall in to rent arrears which you will need to pay back.

Will I be worse off on Universal Credit?

The DWP acknowledges that some claimants would ordinarily be worse off transferring to Universal Credit and so has introduced a system of “transitional protection” where they will pay an extra amount of money onto a claimant’s Universal Credit claim to ensure that they receive the same money that they would have done on legacy benefits.

However, to receive this transitional protection payment you must ensure that you:

  • Apply for Universal Credit once you have received your Universal Credit migration notice,
  • Apply for Universal Credit within the three-month deadline on the Notice,
  • Have no other change of circumstances.

Do not therefore claim Universal Credit before you receive your Migration Notice otherwise, you will lose out on the ‘transitional protection’. Once you have claimed Universal Credit it cannot be undone.

When will I get my Managed Migration Notice?

Those claimants who only received Tax Credit have already received their Managed Migration Notice and transferred on to Universal Credit. For other benefit groups, the timetable is as follows:

Claiming Tax Credits and Housing Benefit   From April 2024
Claiming Income Support – either on its own or with Tax Credits and / or Housing Benefit   From April 2024
Claiming Housing Benefits Only   From June 2024
Claiming Income related Employment and Support Allowance with Child Tax Credits   From July 2024
Income based Job Seeker Allowance   From September 2024
Pension Age and claiming tax credits   From August 2024. However, the situation for pension age tax credit claimants is more complicated as depending on your circumstances you may be asked to claim Pension Credit (or amend your existing Pension Credit claim if you have one) rather than claim Universal Credit. You may therefore receive a Tax Credit Closure Notice rather than a Universal Credit Migration Notice.

Those who receive income based Employment and Support Allowance only, or income based Employment and Support Allowance with Housing Benefit will not be asked to move on to Universal Credit until a later date.

Are there any benefit claimants who are not impacted by the Managed Migration?

Yes – you will not move on to Universal Credit if you only receive Housing Benefit and you are:

  • Pension age (and not claiming Tax Credits)
  • Living in supported accommodation
  • Receiving New Style Employment and Support Allowance or New Style Job Seekers Allowance
Hints and tips
  • Make sure you know what benefits and amounts you are currently receiving.
    • Keep any current benefit award letters safe so that you can check that your benefit entitlement is correct when you do move on to Universal Credit
  • Don’t move on to Universal Credit too early or leave it too late – timing is everything
  • Do your research before claiming Universal Credit – the government has set up a dedicated webpage to explain the move to Universal Credit
    • There are also benefit calculator websites such as Entitled To and Turn 2 Us which can show what your likely benefit entitlement will be.
  • The benefit rules are complex – if you have any concerns please contact our specialist benefit case worker team at benefit.caseworkers@beyondhousing.co.uk before claiming Universal Credit.
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