The Department for Work and Pensions (DWP) will restart the ‘managed migration’ process of moving up to 2.6 million legacy benefit claimants over to Universal Credit (UC) from Monday, May 9.
Only 500 people will initially be moved to Universal Credit through the managed migration process, however, this is expected to increase over the coming months in order for the DWP to achieve its completion deadline by the end of 2024.
People on older style benefits include:
- 1.2m on Income-Related Employment and Support Allowance (ESA)
- 1m on Working Tax Credits and Child Tax Credits
- 100,000 on Income-Based Jobseeker’s Allowance (JSA) and Housing Benefit
- 200,000 on Income Support
The DWP will start writing to legacy benefits claimants from this month to let them know that they will be moving across to Universal Credit and explain how the process will work.
The letters are called ‘Migration Notices’ and will let people know their legacy benefits are ending, and that they have three months to make their Universal Credit claim.
Everyone moving over from legacy benefits will have their entitlement to Universal Credit assessed against their current claims, with top-up payments - referred to as ‘transitional protection’ - provided for eligible claimants whose entitlement would have been reduced because of the change to ensure they receive the same amount of support as on a legacy system.
The DWP said these will continue unless their circumstances change.
A dedicated helpline will be given on the Migration Notice that claimants receive to provide support for people to make their Universal Credit claim, and guidance is also available on the Understanding Universal Credit website, here.
Migration process from legacy benefits to Universal Credit
There are three ways people can migrate to Universal Credit, outlined in the DWP’s ‘2022-24 strategy for implementing the final phase of Universal Credit’ - you can read it in full on the GOV.UK website, here.
These are:
- Natural migration - a change of circumstances triggers a move
- Voluntary migration - claimants chooses to move
- Managed migration - DWP triggered
The DWP explains: “Of the 2.6 million households remaining on legacy benefits in April 2022, should they choose to claim UC today, we estimate around 1.4 million (55%) would have a higher entitlement on UC, 300,000 would see no change and approximately 900,000 households (35%) would have a lower entitlement.”
The DWP also estimates that of the 900,000 households who would essentially be worse off moving to Universal Credit, around 600,000 would receive transitional protection through the managed migration process, while others will “either leave benefits, migrate naturally before DWP asks them to move or receive a severe disability transitional payment”.
You can read the full guide to the DWP's managed migration to Universal Credit on the GOV.UK website, here.
Which groups are expected to be better or worse off on Universal Credit?
The DWP estimates ESA claimants who are in the support group but who do not get the Severe Disability Payment to be better off on Universal Credit.
Households who get ESA and receive the Severe Disability Premium and the enhanced disability premium, are expected to be worse off.
More details about which groups could receive a higher or lower entitlement on Universal Credit can be found here.
DWP estimates on who will receive higher or lower entitlements or see no change to the amount of benefit they receive are summarised below.
Higher entitlement after moving to Universal Credit
- ESA claimants: 600,000
- Tax Credits (Working and Child) claimants: 700,000
- Total, including other legacy benefits: 1.4 million
Lower entitlement after moving to Universal Credit
- ESA claimants: 500,000
- Tax Credits (Working and Child) claimants: 300,000
- Total, including other legacy benefits: 900,000
No change after moving to Universal Credit
- ESA claimants: 100,000
- Income Support: 100,000
- Total, including other legacy benefits: 300,000
Transitional protection
The DWP said that around 400,000 ESA and 100,000 Tax Credits claimants will receive transitional protection, which means they should not see any reduction in their benefits when they transfer.
However, the value of this protection will be eroded every year because, with the exception of the childcare element, any annual increase in Universal Credit will be deducted from the transitional protection.
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