Brits who claim certain benefits will be affected by a major shake-up to the benefits system from this Spring.
From April, the Department for Work and Pensions (DWP) will ask more Tax Credit claimants to move onto Universal Credit.
The DWP says notices will be sent out to over 500,000 claimants currently in receipt of tax credits
Around two million people still claim "legacy benefits" in the UK which include benefits such as Tax Credits, Income Support, income-based Jobseeker's Allowance (JSA) and Housing Benefit.
The DWP says it will be sending letters, or Migration Notices, from next month to an increased number of Tax Credit claimants notifying them of the action they need to take.
The letters will be sent out over the next two years.
Originally, the DWP wanted to move, or "migrate" all legacy benefit claimants onto Universal Credit by the end of 2024.
However, the mass transfer to Universal Credit was paused due to the Covid-19 pandemic and the goal has now changed.
The DWP is aiming to have all claimants of Tax Credits, including those on both income-related Employment Support Allowance and Tax Credits, all cases on Income Support, Jobseeker’s Allowance, and all housing benefit-only cases by 2024-25.
Those claiming income-related Employment Support Allowance have had their managed migration pushed back and the Government aims to have these claimants moved over by 2028-29.
The DWP claims around 55% of legacy benefit claimants will be better off on Universal Credit, and roughly 35% would be worse off.
In these instances, the claimant would usually be entitled to a top-up payment known as "Transitional Protection".
This means that their Universal Credit entitlement will be the same as their legacy benefit entitlement at the point they move.
Guy Opperman MP, minister for Employment said: "Universal Credit has proven itself as a benefits system fit for the modern age, having dealt with the unprecedented demand of 3.7million claims during the pandemic.
"The movement of those on legacy benefits to Universal Credit will ensure we can continue to provide the best level of support to benefit recipients through an effective and streamlined system.
"This Government remains committed to supporting the most vulnerable in society. I want to encourage all those who receive their migration notices to take action to ensure that they continue to receive the benefits they are entitled to."
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
What happens when you move to Universal Credit?
When it is your turn to be moved across to Universal Credit, you'll receive a "migration notice" in the post. This will give you a three-month deadline to claim Universal Credit.
If you don't start a claim for Universal Credit within this time, your current benefits will automatically stop.
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 Employment and Support Allowance and income-based Jobseeker's Allowance, will "run on" for two weeks to help bridge that gap.
If you claim tax credits, your entitlement will end as soon as you claim Universal Credit according to the Government website.