Benefit claimants in four parts of the country are being warned that they will need to move over to the Universal Credit system.
The Department for Work and Pensions (DWP) is informing claimants that their existing benefits are coming to an end, with a deadline to move on to Universal Credit (Universal Credit).
Letters explaining this are being sent out to households in the affected areas of Bolton, Medway, Truro and Falmouth.
The following six benefits and tax credits are being scrapped for people of working age:
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Child Tax Credit
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Housing Benefit
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Income Support
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income-based Jobseeker’s Allowance (JSA)
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income-related Employment and Support Allowance (ESA)
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Working Tax Credit
Any other Government payments, such as Personal Independence Payment (PIP), should stay the same.
The move from legacy benefits to Universal Credit affects more than two million people in the UK.
The mass transfer to UC was paused due to the coronavirus pandemic, but the Department for Work and Pensions (DWP) has once again started inviting people to move over to the new system.
Most people can no longer make a new claim for these benefits, meaning you have to apply for Universal Credit.
What happens when you transfer to Universal Credit?
The DWP said in its official guidance: "You will be notified of when you will be asked to claim Universal Credit. All claimants will be moved to Universal Credit by 2024.
"If you currently receive these benefits, you will receive a Migration Notice letter from the Department for Work and Pensions. This letter will inform you that your existing benefits or tax credits will be ending, and the date you must claim Universal Credit by. You will have three months to claim Universal Credit from the date of your Migration Notice letter."
The DWP said: "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.
"You can only get this top-up if you have received a Migration Notice letter from DWP and claim by the deadline date on your letter.
"If your circumstances change before you make your claim, this may affect the amount you get. You should claim as soon as possible to make sure the amount you are currently entitled to can be protected."
Universal Credit payments are made up of a standard allowance plus any extra amounts that apply to you - for example, if you have children, a disability or health condition which prevents you from working, or need help paying your rent.
Usually, you cannot get Universal Credit if you have more than £16,000 in savings, but people forced to switch over from their old benefits may be exempt from this rule.
The DWP explained that if you receive tax credits, you can make a claim for Universal Credit even if you have savings or capital of more than £16,000. But after 12 months, the normal eligibility rules will apply - that means you'll be expected to use up some of your savings in that first year to continue getting the same amount in Universal Credit.
In addition, rules will be waived so that students on benefits will be allowed to claim Universal Credit if they or their partner are in full-time advanced education (such as attending university).
You can find out even more information about the Universal Credit system here .
How to claim Universal Credit
You can apply for Universal Credit online here .
You are required to create an online account and then complete your claim within 28 days of doing so.
If you live with your partner, it is essential that you both create accounts in order for the total household earnings to be taken into account - even if your partner is not eligible or intending to make a claim.
There is also a Universal Credit Migration Notice helpline if you are unable to apply online.
Here’s what you’ll need to apply online:
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your bank, building society, or credit union account details
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an email address
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access to a phone
You will need to prove your identity using documents such as your driving licence, passport, debit or credit card, or a payslip or P60.
The application will ask about the following information:
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your housing payments
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your earnings
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any disability or health condition that affects your work
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how much you pay for childcare if you want help with those costs
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any savings or investments, like shares or a property that you rent out
Appointments are available at job centres if you are unable to prove your identity online or more information is needed.
When you need to start the claim
In order to avoid losing financial support, you must claim Universal Credit before the deadline given in the letter.
This date is three months from when the letter was sent out and so it should allow enough time for the relevant documents to be gathered.
If there is a reason that you are unable to make the claim before the deadline given on your letter, you should contact the Universal Credit Migration Notice helpline as soon as possible.
However, the DWP cautioned: "We can only give you more time to make a claim if you have a good reason. You must request this before the deadline date on your letter."
