Money Matters: Managed migration to Universal Credit and what it could mean for your benefits

In this week’s Money Matters column, Wrekin’s Debt and Energy manager Dan Bebbington explains how the Government is moving people from other benefits onto Universal Credit and what action you need to take if you’re affected.

The idea behind Universal Credit was that it would simplify the benefits system by rolling six other benefits into one monthly payment.

The process of moving claimants still receiving ‘legacy benefits’ onto the new system is now underway.

This process is called ‘Managed Migration’, and will see most people claiming Working Tax Credits, Child Tax Credits, Jobseekers Allowance and Housing Benefit moved over by April 2025.

For people claiming income-based Employment and Support Allowance, with or without another benefit such as housing benefit (but not tax credits), migration will happen by 2028.

It’s important that you do not do anything until you receive a Managed Migration notice from the DWP.

When you do receive the letter, it will give you a deadline by which you need to apply for Universal Credit.

You will need to make a claim to Universal Credit before the date shown in your letter. If you don’t, you risk your benefits stopping.

You cannot opt to stay on your previous benefits.

When you receive your migration notice, it will contain details of the UC migration helpline which you can call for free for help and advice on making your claim to UC.

You can also visit your local Job Centre and speak to the advisors there.

By moving to UC after you receive your Migration Notice letter, your income will not be reduced.

The Government has said most people should be better off on UC than legacy benefits, but if your UC amount is less than you were receiving under your other benefits you will receive ‘transitional protection’. This is a payment to top up your UC to the amount you were previously receiving.

To be eligible for this protection, you must claim Universal Credit by the deadline date on your Migration Notice letter.

Universal Credit is different to other allowances and benefits as it is all combined into one monthly payment into your bank, and it will also include any help you get towards your rent.

When you move onto Universal Credit, you can set up a direct debit to pay your rent. If you are worried about doing this or need advice, please speak to your local Housing Team, or your landlord if you rent privately.

Universal Credit does not include help towards your council tax. You will need to make a separate claim to your local council for this.

Wrekin Housing Group customers who have concerns or questions about Managed Migration can contact our Money Matters Team.

21st March 2024