Millions of people who receive benefits are set to see a change as some are being replaced by Universal Credit. The so-called 'legacy benefits' are being phased out.
They will be encompassed by Universal Credit instead. In all, six benefits are included in the change: Housing Benefit, income-related Employment and Support Allowance (ESA), income-based Jobseeker’s Allowance (JSA), Child Tax Credits (CTC), Working Tax Credits (WTC) and Income Support.
New claims for benefits like these are no longer being accepted and work has started to migrate them to Universal Credit, after a pause due to the pandemic. As of last year 2.6million people were still receiving the old-style cash. The move to Universal Credit is known as 'managed migration' and is planned to be finished by 2028. Most people receiving legacy benefits are expected to be switched over by March 2025.
The Department for Work and Pensions (DWP) is moving the people who claim income-related ESA only, and do not get Tax Credits, to Universal Credit by 2028. When it's your turn, you will receive a 'migration notice' in the post, reports BirminghamLive.
After you receive this notice, you have only three months to apply for Universal Credit. If you don't apply before this deadline, your benefit payments will stop and you'll have to wait five weeks for your first Universal Credit payment. The DWP has stated that most people will be better off on Universal Credit, but some could be worse off. About 300,000 claimants will see no change.
The DWP guidance explains: "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."
This protective measure lasts until there's no difference between what you're awarded with Universal Credit and what you used to receive under old benefits. You can file a claim for Universal Credit online or if needed, you can call the Migration Notice helpline at 0800 169 0328. Or, you can head to your local Job Centre for help with your claim.