A host of benefits are now being replaced by Universal Credit, and all those affected will be moved over by the end of 2024.
Those who still claim certain legacy benefits will be moved to Universal Credit over the coming months, reports Chronicle Live. People who are unsure about which benefits are being replaced, or what happens when it is your turn to move to Universal Credit.
The mass exodus of legacy benefits had been paused due to the coronavirus pandemic, but the Department for Work and Pensions (DWP) resumed the transfer once again in May of this year. At the time, over two million UK households were still claiming legacy benefits.
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The DWP has set a deadline of the end of 2024 to have everyone moved over to Universal Credit. Here are more details.
Which benefits are being replaced by Universal Credit?
Universal Credit is replacing the following six benefits:
- Working Tax Credit
- Child Tax Credit
- Income-based Jobseeker’s Allowance (JSA)
- Income Support
- Income-related Employment and Support Allowance (ESA)
- Housing Benefit
Most people can no longer make a new claim for these benefits, meaning you have to apply for Universal Credit.
What happens when you move to Universal Credit?
When it is time to move across to Universal Credit, you will receive a "migration notice" in the post. This will give you a three-month deadline to claim Universal Credit.
Those who don't claim for Universal Credit during the time-frame will see their benefits stopped automatically. You can choose to move earlier, if you know you will be better off doing so.
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Some people may also be moved across to Universal Credit early if they see a change in circumstances - for example, if they move home or change their working hours. The DWP claims 1.4million people (55 per cent) will be better off on Universal Credit, and 900,000 (35 per cent) would be worse off.
The other 300,000 benefit claimants will see no change. Once a Universal Credit claim is made, older benefits will be stopped, and you will need to wait five weeks for your first payment to arrive.
Some legacy benefits - including Housing Benefit, Income Support, income-related Employment and Support Allowance and income-based Jobseeker's Allowance - will "run on" for two weeks to help bridge that gap. Tax Credits payments will stop as soon as you claim Universal Credit.
Those who are moved over to the payment via managed migration and are worse off, you will get monthly transition payments which are designed to cover the shortfall of payments. The transitional protection lasts until there is no difference between the amount awarded under Universal Credit and what you received before under legacy benefits.
If you do claim Universal Credit, one payment will come through monthly, and typically will be managed online. You may also be able to claim other benefits alongside Universal Credit.
For example, you could be eligible for New Style Employment and Support Allowance (ESA) if you're ill or have a disability that affects your ability to work.
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