DWP explains three-track Universal Credit change and who gets payment top-up
by David Bentley, https://www.facebook.com/davidbentleybm/ · Birmingham LiveThe Department for Work and Pensions has confirmed the rules for thousands of people facing a move to Universal Credit. It says people who receive Migration Notice letters telling them to make the switch should not be left worse off financially.
Universal Credit was introduced to replace six existing means-tested benefits: income-based Jobseeker's Allowance (JSA), income-related Employment and Support Allowance (ESA), Housing Benefit, Income Support, Working Tax Credit and Child Tax Credit. These legacy benefits will eventually be abolished, with tax credits first to be scrapped in April 2025.
There are three ways people on these older types of benefits will be transferred to Universal Credit but only those facing a 'managed migration' after receiving one of the letters will see their payments kept at the same level if their Universal Credit entitlement is lower. This extra sum is known as transitional protection.
This is not offered to those who choose to move, which is called voluntary migration. Nor is it available to anyone who must transfer to Universal Credit under natural migration because their existing benefit claim is no longer applicable after a substantial change in circumstances. This could include a partner moving in, having a baby or relocating to another local authority area.
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GOV.UK guidance explains: "We will complete the implementation of Universal Credit with a three-track approach – natural migration, voluntary migration and managed migration.
"Natural migration has been in place since the introduction of UC. If claimants experience a change in circumstances while on legacy benefits, they would then naturally migrate to UC and any legacy claim will be closed. Legacy claimants can also choose to move by making a claim for UC (and by default closing their legacy claim) but should only do this if they think they will be better off on UC.
"We want to encourage people who could be better off financially to consider moving to Universal Credit. We estimate more than half of current claimants will be better off."
Universal Credit three-track changeover - full details
1. Natural migration
When a legacy claimant experiences a change in circumstances (for example, a change in employment status or family situation), they will naturally migrate to UC. Any Covid-related relaxations in rules that were in place for Working Tax Credit recipients have been removed.
2. Voluntary migration
Legacy claimants can choose to voluntarily move to Universal Credit. Estimates suggest that around 1.4 million households could be better off by moving straightaway.
The DWP said: "The complexity of the legacy benefits system means it can be difficult for people to see and compare their overall entitlements. We want to help claimants make an informed choice themselves about whether to move voluntarily. This includes looking at different ways to provide information to legacy benefit claimants. For example, by signposting them to independent benefit calculators, independent welfare advice and through a communications campaign to raise awareness and tackle misperceptions.
"This approach is about making sure that those who stand to see a higher entitlement have the opportunity to move sooner rather than later, while simultaneously making sure those who may have a lower UC award wait for managed migration when they may be eligible for transitional protection so they retain the same entitlement at the point they move. People who choose to move voluntarily are not entitled to transitional protection which is why it is important that claimants have confidence they are making an informed choice. Once an application is made to move to UC, there is no reverting to previous benefits."
3. Managed migration
For those claimants who do not choose to migrate voluntarily and have not migrated naturally, the DWP says it will need to manage their move to Universal Credit. In these cases, a transitional element can be offered if someone would otherwise be due to be paid less.
The DWP says transitional protection is available to keep your payments the same if you receive a Migration Notice letter and move to Universal Credit by your deadline date. This is three months from the date on the letter, though you can ask for extra time.
It said: "If the amount you're entitled to on your existing benefits is more than you'll get on Universal Credit, a top-up is available. This is called transitional protection. You can only get this additional amount if you have received a Migration Notice and claim by your deadline date. If your circumstances change after you've made your claim, any transitional protection you receive may stop."
It says that once someone's Universal Credit entitlement is calculated and compared with what they were receiving before, a transitional amount can be offered to top it up if their previous benefits were higher. The top-up is calculated using information such as your employment status, who you live with and details of any income, savings, children, health issues or caring responsibilities. It is then compared with officially verified figures of what you were getting on legacy benefits.
No extra protection is offered to those whose new Universal Credit payments are higher than what they were on before.
It's also worth noting that if you are on tax credits, you are still allowed to move to Universal Credit even if you have money, savings and investments above the capital limit of £16,000. But after 12 months, normal eligibility rules will apply and you won't be eligible for Universal Credit if you still have more than the permitted amount in your accounts.
Anyone needing help can call the Universal Credit Migration Notice Helpline, which is open Monday to Friday, from 8am to 6pm, on 0800 169 0328. Alternatively, contact the Citizens Advice Help To Claim service which is available on the following numbers, depending on your location:
- England 0800 144 8 444
- Scotland 0800 023 2581
- Wales: 08000 241 220
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