The Department for Work and Pensions (DWP) restarted the ‘managed migration’ process of moving up to 2.6 million people currently claiming legacy benefits over to Universal Credit in May. The 'discovery phase' of the managed migration process is currently only underway in England and no indication of when it will start in Scotland has been given yet, but all claimants will be moved by the end of 2024.
Older-style benefits include Income-Related Employment and Support Allowance (ESA), Working Tax Credits and Child Tax Credits, Income-Based Jobseeker’s Allowance (JSA), Income Support and Housing Benefit. The DWP will start writing to legacy benefits claimants 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 give claimants three months to make their Universal Credit claim. However, many of these claimants may not be aware that a change in their circumstances could actually trigger the move to Universal Credit, known as ‘natural migration’.
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.
But this is only if the managed migration takes place. A natural migration would not be eligible for that payment protection.
And it’s something to think carefully about.
The DWP explains: “Of the 2.6 million households remaining on legacy benefits in April 2022, should they choose to claim UC [Universal Credit] 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.”
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
Entitledto is a website which aims to “help everyone to access the benefits they're entitled to” and has produced a huge list of all the potential changes in circumstances which could trigger a natural migration move to Universal Credit.
Entitledto explains: “In general, natural migration could be triggered if entitlement to your current benefit ends (prompting a need to claim a new one) or you become entitled to a different or extra benefit. It shouldn't happen when you make changes to benefits you are already claiming.”
Their table of examples indicates what may happen if a range of circumstances are triggered, and whether you have a choice whether to remain on your existing benefits or claim Universal Credit.
But the website warns: “If you decide to switch we suggest you seek advice before doing so. It is not just the amount of money you may be entitled to that could change.”
Before making any decision, get independent advice - once you start a Universal Claim, you can’t go back to your legacy benefit.
Entitledto has seven main categories and one ‘other circumstances’ with detailed examples to help people understand the risks, with a total of 32 changes that could trigger a natural move.
The categories are:
- A change in employment status - 8 examples
- A change in family circumstances - 5 examples
- A partner leaving or joining the household - 5 examples
- Starting or stopping being a carer - 3 examples
- Starting or stopping a claim, base on disability - 2 examples
- Changes to Tax Credits - 2 examples
- Moving home and taking up a new tenancy - 3 examples
- Other changes - 4 examples
View the full details of each example on the entitledto 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.
To keep up to date with the managed migration to Universal Credit, join our Money Saving Scotland Facebook group here, follow Record Money on Twitter here, or subscribe to our twice weekly newsletter here.
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