The UK government is changing the benefits system to make it simpler. They’re moving from many different benefits to one single benefit called Universal Credit (UC). This change is supposed to make things easier but has raised concerns, especially for disabled individuals who could lose a lot of money. Here’s a detailed look at what Universal Credit migration means, its impact, and what beneficiaries need to know.
What is Universal Credit Migration?
Universal Credit is a new system that replaces several old benefits. It’s designed to streamline the payment process through a digital system. Both Her Majesty’s Revenue and Customs (HMRC) and the Department for Work and Pensions (DWP) are managing this change. By September 2024, Employment and Support Allowance (ESA) claims will start moving to Universal Credit, which was originally planned for 2028/29.
Financial Impact on Beneficiaries
The move to Universal Credit is expected to impact disabled individuals the most. Research shows they might lose about £2,800 each year. Millions of people who rely on benefits will need to switch to Universal Credit to keep getting support. The DWP will notify ESA recipients about the change by December 2025.
Why Shift to Universal Credit?
The DWP is sending notices to around 500,000 people on old benefits, telling them they need to switch to Universal Credit. New claims for old benefits are no longer accepted. Beneficiaries can transfer to Universal Credit in several ways:
- Migration Notices: Recipients must follow the instructions in the notice to claim Universal Credit.
- Changed Circumstances: If something changes in the beneficiary’s situation, claiming Universal Credit might be beneficial.
- Voluntary Claims: Some people may choose to switch to Universal Credit because they believe it offers better support.
Transition Process
To move from old benefits to Universal Credit, those who get a migration notice must claim online before the deadline (usually three months from the notice). You’ll need the following information:
- Email address
- Housing details
- Payslips
- Childcare costs
- Bank account details
- Investment and savings information
Setting up an online UC account and submitting a claim on the UK Government portal will start the transition. Old benefits like tax credits will stop immediately upon claiming Universal Credit, while benefits like Jobseeker’s Allowance (JSA) and ESA will stop after two weeks.
Universal Credit Rates 2024
Universal Credit rates have been adjusted for inflation, with a 6.7% increase from June 2024. Here are the basic rates for 2024/25 for adults over 25:
- Single individual below 25: £311.68
- Single individual above 25: £393.45
- Couples under 25: £489.23
- Couples over 25: £617.60
Additional payments are available for recipients with dependent children, with extra support for disabled children.
Key Points
By the end of 2024, the DWP aims to move beneficiaries from the following old benefits to Universal Credit:
- Housing Benefit
- Income Support
- Child Tax Credit
- Employment and Support Allowance (ESA)
- Working Tax Credit
- Jobseeker’s Allowance (JSA)
Universal Credit has been essential in supporting millions of families with their living expenses. Payments are typically made monthly, though some claimants may receive payments twice a month.
The Universal Credit migration is a big change in the UK benefits system, aiming to simplify and streamline support for millions of citizens. However, the transition poses financial challenges, particularly for disabled individuals. Staying informed and promptly responding to migration notices will be crucial for beneficiaries to ensure they continue receiving the support they need.
What is Universal Credit?
Universal Credit is a single benefit system replacing several old benefits to simplify the payment process.
Who will be affected by the Universal Credit migration?
The migration affects everyone currently receiving old benefits, especially disabled individuals who might face financial losses.
How do I transition to Universal Credit?
You need to claim online through your MyGov account before the deadline mentioned in the migration notice.
When will the transition to Universal Credit start?
The transition will begin in September 2024, with the DWP notifying ESA recipients by December 2025.
What are the new Universal Credit rates for 2024?
The rates for 2024/25 have increased by 6.7%, with specific rates for single individuals and couples.