HOUSEHOLDS receiving benefits in three areas of the country could see their payments change as part of a Universal Credit shake-up.
The government is currently moving those on so-called “legacy benefits” such as tax credits onto Universal Credit.
AlamyMillions of people are still on “legacy” benefits and will soon be moved over[/caption]
Millions of people are still on these old-style benefits, but the government plans to move all claimants onto Universal Credit by the end of 2024.
The move, called Managed Migration, began in May last year and came after a successful pilot in Harrogate in July 2019.
Now households in three more areas of the country will get managed migration notices from June.
In these letters, those on tax credits are asked to claim Universal Credit instead.
It comes after they were sent out to over 500,000 claimants currently in receipt of tax credits in Avon, Somerset and Gloucester.
While households claiming tax credits in East London and Cheshire are being contacted throughout this month.
From next month the Department of Work and Pensions will make contact with people in the following areas:
Greater ManchesterNorth East YorkshireHumber
Once you receive a letter, you have three months to move over, or you could lose your current benefits.
By September, the DWP said it expects to have made contact will all households on tax credits in all regions of Great Britain.
You might not have to wait for a letter to be migrated across to Universal Credit though.
The DWP is carrying out a three-way approach whereby some people will be naturally migrated across, others voluntarily migrated across, and some managed migrated across.
Natural migration is when someone on an old-style benefit has a change of circumstances and will need to make a new claim for Universal Credit.
Voluntary migration is when someone on an old-style benefit chooses to voluntarily move over to Universal Credit, but not everyone will be better off.
If you chose to move over and are worse off you won’t get them, so you need to check carefully if you’ll be better off and wait to be moved if not.
A benefits checker can help you understand if you’ll be better off or not.
Using an online benefits calculator can help you compare and are free and easy to use from charities such as Turn2Us and EntitledTo, and it’s also worth asking them for advice.
Once you move over, you won’t be able to go back to legacy benefits.
Managed migration is when the DWP send those on old-style benefits a letter requesting they move across to Universal Credit.
This is the full list of benefits set be axed by the DWP:
working tax credit (end of 2024)child tax credit (end of 2024)income-based jobseeker’s allowance (end of 2024)income support (end of 2024)income-related employment and support allowance (800,000 not receiving tax credits by end of 2028)housing benefit (end of 2024)
What is Universal Credit?
Universal Credit is a welfare scheme that was designed to combine a number of old “legacy benefits” into a single monthly payment.
Whether you are eligible will depend on your individual circumstances.
You may be eligible if you meet all of the following criteria:
You’re on a low income or out of workYou’re 18 or over (there are some exceptions if you’re 16 to 17)You’re under State Pension age (or your partner is)You and your partner have £16,000 or less in savings between youYou live in the UK
How much is Universal Credit?
Universal Credit payments are made up of a standard allowance and then various additional payments that depend on your circumstances.
This is how much you will get as your standard allowance each month:
Single, under 25 – £292.11Single, 25 or over – £368.74Couple, joint claimants both under 25 – £458.51 (for both)Couple, joint claimants, one or both 25 or over – £578.82 (for both)
You may also get additional payments depending on your circumstances.
You may be able to get a top-up if you have children:
For those with a first child born before April 6, 2017, the extra amount is £315For those with a child born on or after April 6, 2017 or second child and subsequent child, the extra amount is £269.58For those with a disabled child, the lower rate additional payment is £146.31 and the higher rate is £456.89
If you have a disability you could get an extra amount depending on your circumstances:
For those deemed to have limited capability for work, the extra amount is £146.31 For those deemed to have limited capability for work or work-related activity, the extra amount is £390.06
Universal Credit claimants can get an additional amount if they’re caring for a severely disabled person for at least 35 hours a week.
The amount you get is £185.86.
You can also get an increased work allowance:
The higher work allowance (no housing amount) for someone claiming Universal Credit with one or more dependent children or limited capability for work is £631The lower work allowance for someone claiming Universal Credit with one or more dependent children or limited capability for work is £379
Meanwhile, thousands of households can claim up to £90 free cash to land in bank accounts within days – here’s how you could claim.
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Do you have a money problem that needs sorting? Get in touch by emailing [email protected]