A HUGE change to Universal Credit is coming and thousands could lose freebies and discounts worth up to £6,788.
The government is currently moving those on so-called “legacy benefits” such as tax credits onto Universal Credit as part of a move called Managed Migration.
Universal Credit claimants must make sure they’re not going to miss outAlamy
From August, 244,800 letters will start going out to households in four English regions inviting them to make the move.
These claimants will be asked to claim Universal Credit instead and will be given an allotted time frame to make the claim.
But if they fail to meet the deadline, they could not only miss out on benefit payments but also other freebies and extras worth up to £6,938.
Here’s the full list of freebies and extras Universal Credit and other benefit claimants could miss out on if they fail to meet the deadline:
Household Support Fund – up to £1,000Free childcare – £1,630School Uniform grants – £100sSocial tariffs – around £256Energy bill grants – up to £1,500Free prescriptions and dental treatment – £9.65Sure Start grant – £500Free travel and childcare when looking for work – £150Help to save – £1,200Council tax discountsHealthy Start vouchers – worth £442
The Department of Work and Pensions (DWP) will make contact with people in the following areas:
West ScotlandWest YorkshireStaffordshireDerbyshireSouth London
It comes after the DWP said all Tax Credit household across the UK will have been contacted about moving to Universal Credit by the end of 2024.
Once you receive a letter, you have three months to move over, or you could lose your current benefits.
Over two million people are still on old-style legacy benefits, but the government plans to move the majority of them onto Universal Credit by the end of 2024.
In most cases, individuals will be better off following a move from legacy benefits to Universal Credit.
But 300,000 could be worse off, and should not move until they are asked to so their payments are protected, or they could lose cash.
Where an individual’s Universal Credit payment is lower than their legacy benefits entitlement, they will usually be entitled to a top-up payment known as Transitional Protection.
This means that their Universal Credit entitlement will be the same as their legacy benefit entitlement at the point they move.
Recipients who receive a migration notice and fail to act will risk losing their current benefits entitlements.
It’s also worth noting that a change in circumstances before you receive a managed migration notice might trigger the move to Universal Credit earlier, for example a change of job or address.
But in cases like this, you won’t be eligible for Transitional Protection.
You can also choose to move over to Universal Credit from tax credits at any time – but it is best to check before doing so as you might not be better off.
You should consider carefully what moving over means for your money, as you can’t move back once you’re on Universal Credit.
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.
The DWP has said that all households on tax credits across the UK will have been contacted about moving to Universal Credit by September.
There are two types of tax credits – working tax and child tax credit.
The benefit is worth up to up to £3,685 a year, but if you fail to renew your claim you’ll end up missing out on thousands every year.
Do you have a money problem that needs sorting? Get in touch by emailing [email protected].
You can also join our new Sun Money Facebook group to share stories and tips and engage with the consumer team and other group members.