Millions of people claiming legacy benefits are gradually being moved over to Universal Credit.
The so-called “managed migration” over to Universal Credit was restarted in May 2022, having been temporarily paused during the coronavirus pandemic.
The Department for Work and Pensions (DWP) wants the majority of people moved over to Universal Credit by December 2024.
At the time of the “managed migration” restarting, some 2.6million people were still claiming old-style legacy benefits in the UK.
But which benefits are being replaced, and how do you know if you will be better off? We explain.
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
As we’ve mentioned above, the Government expects most people to be moved across to Universal Credit by the end of 2024.
However, if you currently claim income-related ESA and do not get Tax Credits, you will be transferred across by 2028.
Most people can no longer make a new claim for these benefits, meaning you have to apply for Universal Credit.
However, there is an exception - those who receive Income-related Employment and Support Allowance (ESA) and do not get Tax Credits will be moved over by 2028.
How will I know when it is my turn to move to Universal Credit?
If you have received a "migration notice" in the post, you’ll be given a three-month deadline to start claiming Universal Credit.
If you don’t claim within this time, your current benefits will stop.
You may be moved across earlier if your circumstances change - for example, if you move home or change your working hours.
You can choose to move over earlier, if you think you will be better off - but you need to do your research first, as you can't move back to legacy benefits.
How do I know if I’ll be better or worse off?
Your first step should be to use a free benefits calculator online, such as:
If you think you will be better off, get advice first before switching to Universal Credit - once you make the move, you can’t go back to your old benefits.
You can get free one-on-one benefits check-ups from Citizens Advice or Turn2Us.
The DWP claims 1.4million people (55%) will be better off on Universal Credit, and 900,000 (35%) would be worse off.
The other 300,000 benefit claimants will see no change.
According to MoneySavingExpert.com, those who are more likely to benefit from being on Universal Credit include:
- Most people who work and rent
- Some people who have 'higher earnings' but don't rent
- Those who have childcare costs - particularly higher monthly costs
Those who are most likely to be worse off include:
- Those who aren't in work
- Those who work but don't pay rent
- Self-employed workers earning less than the 'minimum income floor'
- Those with savings over £16,000
- Some with disabilities or caring responsibilities
What happens if I'll be worse off?
If you are moved over to Universal Credit through managed migration, and you'll be worse off, you will get monthly transition payments which are designed to make 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.
Once you make a Universal Credit claim, your old benefits will be stopped and you'll have to wait five weeks for your first Universal Credit payment to arrive.
Some legacy benefits - including Housing Benefit, Income Support, income-related ESA and income-based JSA - will "run on" for two weeks to help bridge that gap.
Tax credits payments will stop as soon as you claim Universal Credit.
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.
