HOUSEHOLDS on old-style benefits are set to be transferred on to Universal Credit by the end of 2024.
The process is called managed migration and means six benefits will be axed by the Department for Work and Pensions.
Millions on old-style benefits are being transferred across to Universal Credit
This includes housing benefit, income-based jobseeker’s allowance and income support.
Not all those receiving the so-called “legacy benefits” will be transferred by the end of 2024 and others could be moved over earlier.
Some 800,000 on employment and support allowance who do not get tax credits will be migrated across by the end of 2028.
The DWP is writing letters to people who are to be migrated guiding them on how to make the switch.
Hundreds of people in Medway, Bolton, Falmouth and Truro have already received theirs.
You might not have to wait for a letter to be migrated across to Universal Credit though.
The DWP is carrying out a three-way approach whereby some people will be naturally migrated across, others voluntarily migrated across, and some managed migrated across.
Natural migration is when someone on an old-style benefit has a change of circumstances and will need to make a new claim for Universal Credit.
Voluntary migration is when someone on an old-style benefit chooses to voluntarily move over to Universal Credit, but not everyone will be better off.
Managed migration is when the DWP send those on old-style benefits a letter requesting they move across to Universal Credit.
This is the full list of benefits set be axed by the DWP:
- working tax credit (end of 2024)
- child tax credit (end of 2024)
- income-based jobseeker’s allowance (end of 2024)
- income support (end of 2024)
- income-related employment and support allowance (800,000 not receiving tax credits by end of 2028)
- housing benefit (end of 2024)
Will I be better off on Universal Credit?
The government estimates some 1.4 million households could be £220 a month better off on Universal Credit.
But it’s worth checking whether you will be better off after making the switch, as you can’t move back after.
There are a number of online benefits calculators that can help you work this out.
You can find them from charities such as Turn2Us, EntitledTo and Martin Lewis’ MoneySavingExpert.
You actually could be worse off on Universal Credit if any of the following apply:
- You’re a lone parent who works but doesn’t pay rent
- You have a disability and you’re in work, but you don’t pay rent
- You’re a self-employed worker earning less than the minimum income floor
- You have savings over £16,000
Once you have applied for Universal Credit you have to wait five weeks for your first payment.
You can get an interest-free advance, but the money you are given will be deducted from future payments.
This means your monthly payments will be reduced until you pay the advance off.