The move to Universal Credit
The move to Universal Credit
The aim of this page is to explain:
Universal Credit is replacing six means tested benefits Income Support, income-based Jobseekers Allowance, income-related Employment and Support Allowance, Housing Benefit, Child Tax Credits and Working Tax Credits. They are called ‘legacy benefits’. UC is not replacing any other benefits, like pension age Housing Benefit, Housing Benefit in special accommodation, Council Tax Support and all other benefits. More information on the difference between UC and legacy benefits
There are 3 main ways you may need to make a claim for UC:
1. You are on legacy benefit(s) and have a change in circumstances that would mean a new claim for another legacy benefit. It is not normally possible to claim a legacy benefit. Instead, you will be told to claim UC and all your legacy benefits will be stopped. This is called ‘natural migration’.
However, sometimes you don’t have to claim UC and you have a choice. See below Do I have a choice in moving to UC?
2. In the next few years, the Government will write to those still on legacy benefits saying they have to claim UC and their legacy benefits will stop after a while. This is called ‘managed migration’. For more details on this, see 'news and guidance' below and our more detailed guide to Universal Credit
Before managed migration, it is important those on legacy benefits find out if they would be better off or worse off on Universal Credit. See Would I be better off or worse off on Universal Credit? below
3. If you’re not on legacy benefits, then you should consider claiming UC if you are on a low income, to top up your wages, need help with rent and so on
News and guidance
In spring 2022, the 'managed migration' process started on a small scale with the DWP writing to small numbers of legacy benefit claimants in Bolton and Medway, Cornwall, Harrow and 250 Tax Credit claimants in Northumberland in September 2022, giving them 3 months or so to claim UC and that their legacy benefits will stop. The Government plan to increase the numbers in 2023 and have the process ended by the end of 2024 or early 20125.
However, on 17 November 2022 the Autumn Statement announced a two-tiered roll out:
"The government is pushing back the managed migration of claimants on income-related Employment and Support Allowance (with the exception of those receiving Child Tax Credit) to Universal Credit to 2018."
We think this means:
1. Those on any of the following benefits are to complete managed migration by 2024/2025 (as per the earlier plan):
• Child Tax Credit or Working Tax Credit
• Income Support
• Income-based Jobseekers Allowance
• Housing Benefit (and no other means-tested benefits)
2. Managed migration is delayed until 2028 for those on the following benefits:
• Income-related Employment and Support Allowance (and no other means-tested benefits), or
• Income-related Employment and Support Allowance and Housing Benefit (and no other means-tested benefits)
And as a consequence, the Housing Benefit and Pension Credit merger is also delayed until 2028.
The following government webpages explain the overall situation but need updating with the Autumn Statement change
If you are on legacy benefits and have a change in circumstances, you may have to claim UC but you may not. You may have a choice.
For example, if you are on Housing Benefit and move tenancy in the same Local Authority, your Housing Benefit continues and you do not have to claim UC but if you move to another Local Authority, that is a new claim for Housing Benefit, so you have to claim UC and your legacy benefit(s) will end
If you do have a choice, you may be better off on UC but you may also be worse off and should wait for managed migration if possible. Read on...
The following information may help you decide if you would be better or worse off on UC:
It is complicated and you do not want to make the wrong decision. If you are unsure, you should seek advice - see below
Self-help calculators help you compare your legacy benefits with Universal Credit
IMPORTANT It's not just a financial comparison between the amounts you'd be entitled to, there are some aspects of Universal Credit that can cause problems for people and could actually make you worse off. Here are some examples to take into account:
- UC is paid monthly in arrears
- You have to wait at least 5 weeks for the first payment after a new claim
- You are expected to normally claim and manage UC online
- The help with rent is paid with your UC, and you then have to pay the rent yourself to the landlord
- There are more work-related requirements in UC
- After a new claim for UC, old Tax Credit arrears may be deducted from your UC
- If your UC is lower than your 'legacy benefits' you drop down to that level. The only time you are protected from a drop is if you have the Severe Disability Premium paid with some of your legacy benefits and when 'managed migration' applies - see How are people moving onto UC above
This toolkit for advisers may help you decide
We have produced a Universal Credit natural migration toolkit for advisers pdf (236kb). It gives examples of where someone might be better off and worse off claiming Universal Credit. They are only examples, and more than one example may apply.
If I can’t figure it out myself, who can help me - nationally and in Newcastle?
Nationally, organisations that support people often have helplines that may be able to advise, for example CarersUK, Working families and Money Helper says ‘If you’re on Universal Credit or think you might be using it in the future, our Money Manager tool can help guide you’
- YHN provide support to their tenants and
- there are number of independent benefit advice services listed in the booklet Where to Get Benefit and Debt Advice in Newcastle found on the webpage: Benefit advice services in Newcastle and benefit offices
The services that can help are listed in our webpage: Universal Credit support in Newcastle.
The services that can help you are listed in our webpage: Universal Credit support in Newcastle.
5. More information
See DWP information Understanding Universal Credit, Universal Credit and you and this new document Completing the Move to Universal Credit, which has examples of those who may be better and worse off.
To help you understand what changes you may need to make, the government have also produced an online Universal Credit personal planner, 'getting ready for Universal Credit'.
More detailed guides include Tax credits - moving on to Universal Credit factsheet and UC law and guidance from Revenuebenefits and Rightsnet