People across the UK are being urged to stay informed about changes to benefits that are being introduced this month.
The Department for Work and Pensions (DWP) is overseeing the transition of several benefits, including Housing Benefit, to Universal Credit and is encouraging anyone currently receiving benefits to stay vigilant for updates on how these changes may affect them.
To assist with the move, UK Debt Expert has partnered with the DWP to ensure everyone is prepared and aware of what to expect, helping to avoid any interruptions in benefit payments.
What is Universal Credit?
Universal Credit is a payment designed to assist with living costs.
It is typically paid monthly to individuals residing in England, Wales, and Northern Ireland, while some people in Scotland may receive it twice a month.
If you have a low income or need support with living expenses, you might be eligible for Universal Credit.
To qualify, you must live in the UK, be over 18 but under the state pension age, and have £16,000 or less in savings, investments, or other assets.
More details on Universal Credit eligibility can be found here.
Which benefits will be replaced by Universal Credit?
Universal Credit will replace six existing benefits and tax credits, including:
- Child Tax Credit
- Working Tax Credit
- Housing Benefit
- Income Support
- Income-based Jobseeker’s Allowance (JSA)
- Income-related Employment and Support Allowance (ESA)
If you currently receive any of these benefits, keep an eye out for a letter from the DWP, which will explain the changes and your next steps.
What action do I need to take?
You will need to act if you currently receive benefits. You’ll need to submit a new claim as part of the switch to Universal Credit. This process will not happen automatically, but don’t worry—DWP will send you a letter outlining the next steps.
This letter, known as a Migration Notice, will detail what actions you need to take and the timeline for doing so. It will also provide information on how to continue receiving financial support during this transition.
Once you receive your Migration Notice, you must apply for Universal Credit to maintain your financial assistance.
Pay close attention to the deadline in the letter—you will have three months from the date of the notice to make your claim.
Failure to apply within this period may result in your current benefit payments stopping. Once you submit your Universal Credit claim, your existing benefits will cease, and you won’t be able to return to your previous benefits.
How much Universal Credit will I receive?
If your Universal Credit payment is less than your previous benefits or tax credits, you may be entitled to financial protection during the transition. This is called ‘transitional protection’.
Here’s an example of how it works:
James currently receives £700 in benefits and tax credits.
His Universal Credit entitlement is £600.
James will receive £100 in transitional protection to cover the difference.
To qualify for transitional protection, you must:
- Apply for Universal Credit only after receiving your Migration Notice
- Apply before the deadline stated in your letter
- Ensure your personal circumstances remain unchanged
- Further details on payment protection can be found here.
When will I receive my Migration Notice?
The DWP has been issuing Migration Notice letters since the beginning of the year. You may have already received your letter if you receive:
- Tax Credits and are below the state pension age
- Tax Credits and Housing Benefit
- Income Support (including Income Support only, or combined with Tax Credits and/or Housing Benefit)
- Housing Benefit only
- Income-related Employment Support Allowance (ESA) with Child Tax Credits
- Tax Credits (if you are of state pension age and asked to move to Pension Credit)
If you receive any of the following benefits, expect your letter to arrive in the coming weeks and months:
- Tax Credits (if you are of state pension age and asked to move to Universal Credit)
- Income-based Jobseeker’s Allowance (JSA)
- Employment and Support Allowance (ESA) only
- ESA with Housing Benefit
What support is available?
There is a range of assistance available to help you navigate the transition to Universal Credit, including help with your application and managing your finances until your first Universal Credit payment arrives.
For more information, visit www.gov.uk/ucmove
Why choose Creditfix?
- Write off unsecured debts over £6,000
- Stop interest and charges soaring
- Reduced payments from £110 per month
