The Department for Work and Pensions (DWP) has issued a crucial warning that 300,000 people are at risk of losing their benefits due to missed deadlines in the shift from legacy benefits to Universal Credit. This transition has already created significant disruption for many households across the UK, leaving individuals vulnerable to financial hardship.
Here’s What You Need to Know About the Change
The DWP’s move to Universal Credit, designed to streamline financial support, has affected millions, and over 318,000 households have already lost their benefits. The cause of this disruption is simple: many claimants missed the deadline to transition to Universal Credit after receiving a migration notice. If you or someone you know is affected, it’s essential to act quickly to maintain your benefits.
Affected Benefits
The transition involves replacing the following six legacy benefits with Universal Credit:
- Income Support
- Income-Based Jobseeker’s Allowance (JSA)
- Income-Related Employment and Support Allowance (ESA)
- Housing Benefit
- Child Tax Credit
- Working Tax Credit
Why Are People Losing Their Benefits?
The main reason for benefits being cut is the failure to act after receiving a migration notice. These notices inform recipients they must apply for Universal Credit within three months. If this deadline is missed, benefits stop automatically.
How to Avoid Losing Your Benefits
If you have received a migration notice, follow these steps to ensure a smooth transition and avoid losing your benefits:
- Check Your Mail Regularly
Ensure your contact information with the DWP is updated so you don’t miss important correspondence. - Act Quickly
Once you receive your migration notice, start your Universal Credit application without delay. The sooner you act, the less risk of missing the deadline. - Gather Required Documents
Prepare your ID, proof of address, income and expense details, and bank account information to complete the application. - Seek Help from Experts
If you’re unsure of the process, contact the Help to Claim service. Offered by Citizens Advice and Citizens Advice Scotland, this service provides free, impartial support to guide you through the application process. - Submit Your Application
Complete your Universal Credit application through the official website.
Understanding Transitional Protection
A key concern for many is whether their payments will decrease after moving to Universal Credit. The DWP has introduced Transitional Protection to ensure payments don’t drop immediately when you switch benefits.
- What Is Transitional Protection?
It guarantees that your Universal Credit payment will match or exceed the amount you received from your legacy benefits. However, this protection may decrease over time, particularly if your circumstances change, such as starting a new job or receiving additional income.
Help to Claim Service
For a smoother transition, the DWP has allocated £15 million to fund the Help to Claim service. This service helps you with:
- Eligibility Checks: Ensuring you qualify for Universal Credit
- Application Support: Assisting with completing forms and gathering documents
- Post-Application Guidance: Helping you manage your Universal Credit claim once approved
For more details or to access the service, visit the Citizens Advice website.
What to Expect Financially from Universal Credit
While Universal Credit aims to simplify the benefits system, it’s essential to understand the financial implications of the transition:
- Monthly Payments: Universal Credit is paid monthly, which may differ from weekly or fortnightly payments you may have been used to.
- Income Adjustments: Universal Credit payments fluctuate based on your income. If you start earning more, your payments will reduce accordingly.
- Housing Costs: Housing Benefit is now incorporated into Universal Credit, and you’ll need to pay your rent directly to your landlord.
- Childcare Support: Universal Credit covers up to 85% of eligible childcare expenses.
Steps to Apply for Universal Credit
Follow these steps to successfully apply for Universal Credit:
- Visit the Universal Credit Website
Go to the official application page and create your account. - Complete the Application
Provide accurate information regarding your income, living situation, and expenses. - Attend an Interview
You’ll need to attend an initial interview at your local Jobcentre Plus to confirm your identity and discuss your claim. - Manage Your Claim Online
After approval, use your Universal Credit account to track payments, report changes, and communicate with your Work Coach.
Final Thoughts
The shift to Universal Credit may seem overwhelming, but by staying informed and acting promptly, you can ensure you don’t lose your benefits. If you’ve received a migration notice, take immediate action to apply for Universal Credit and avoid unnecessary disruptions in your financial support. For assistance, reach out to the Help to Claim service, and don’t hesitate to seek guidance from Citizens Advice if you need further help navigating this transition.
