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DWP Universal Credit move next month will see thousands in UK have old benefits stopped in controversial changeover
A forced switchover to Universal Credit next month will see thousands of claimants have old forms of benefits stopped. The Department for Work and Pensions (DWP) is pushing out Universal Credit to new parts of the United Kingdom in the continued drive to see it replace several older, so-called legacy benefits that are being scrapped.
The Conservative government’s plan as approved by Parliament as far back as 2012 as an attempt to simplify the benefits system – yet the move, which is taking many years to complete, has not been without its critics. The changes mean that housing benefit, child tax credit, working tax credit, income-based Jobseeker’s Allowance (JSA), income support and income-related Employment and Support Allowance (ESA) are being phased out, Birmingham Live reports.
That might all seem merely a bureaucratic change, but people moving to the new system have just three months to apply. And a number of charities say this process is unfair and leaves people at risk of being destitute if they don’t apply in time.
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Whether controversial or not, claimants are expected to move over to Universal Credit (UC) instead of the older benefits they have been receiving, potentially for years. The DWP currently hopes all households claiming these benefits and tax credits will have moved to UC by 2024’s end.
The exception will be Employment Support Allowance, where the deadline for the switch is 2028. The move has been going on for some time, and happens bit by bit.
Thousands of people in Coventry are still on legacy benefits, according to government data. In the Coventry South constituency alone in February 2023, more than 3,700 households were still on legacy benefits. Around 9,500 households were on Universal Credit – which shows that here, as in other places, the changeover is still continuing.
Next month, more people in the UK will be affected. And it will go on like this until the government has switched people over to the new system.
How will I know if am moving to Universal Credit?
Those who will be switched over to UC will get a letter. This is known as a Migration Notice.
Quite simply, it says a person’s existing benefits or tax credits will be stopping. It will then set out a deadline for putting in a claim for Universal Credit.
You will have three months to apply for Universal Credit from the date of your letter. That could have serious implications for those who fail to act quickly enough.
Claimants, for instance, on child tax credit and working tax credit see these stop the day before the deadline if they do not make a claim for UC in time.
Last payment dates differ for different benefits. But entitlement to the legacy benefits goes on for just another two weeks after a claim for Universal Credit has been lodged.
If you don’t put in a claim, the last day of entitlement is two weeks after the deadline given in the letter. This could clearly have a serious impact on a household’s finance, so it’s important you act if you get a letter.
What is happening now with Universal Credit rollout?
The DWP said in its latest update: “Last month we began to increase the number of Migration Notices issued to tax credit claimants and by September 2023 managed migration to Universal Credit activity will be taking place in all regions of Great Britain. On April 3, we expanded into Avon, Somerset, and Gloucester and we will be expanding into East London and Cheshire in May. Currently, work is progressing towards expansion of activity into the Greater Manchester and north-east Yorkshire and Humber areas for June.”
When did Universal Credit rollout start?
It started well before the pandemic, but progress has not been smooth. It was paused in March 2020 after Covid hit amid a scramble to deal with the surge in claimants as the economy went into the deep freeze.
Things have moved on from that point, despite criticisms of the entire basis of the scheme. For example, the BBC reported last year that more than 20 charities said the switchover could push thousands of vulnerable people into poverty. They made the claim in an open letter to Work and Pensions Secretary Thérèse Coffey – and raised particular concern for those with learning disabilities and mental health problems.
Yet the DWP insists the scheme is beneficial. Their website states: “The six benefits being replaced all have complex and inefficient systems based on aging, inflexible IT. Universal Credit uses a modern, digital system which stood up to the test of Covid-19 where it quickly ensured three million new claimants were protected from the financial impact of the pandemic.
“Universal Credit also provides claimants with one to one individually tailored support to help them into employment or to further their career, and people with a health condition or disability who cannot work could receive almost £350 a month on top of the Universal Credit standard allowance. Additional support remains available for those in need, including the Household Support Fund and Discretionary Housing Payments.”
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