Millions of benefit claimants have been warned to act now or face having their benefits cut.
The Department for Work and Pensions (DWP) has issued an urgent warning regarding the managed migration process. Benefit claimants are urged to look out for letters coming through their door explaining what they need to do to ensure their benefits continue.
Managed migration is where people getting legacy benefits will have their claims transferred to Universal Credit.
Over two million people on legacy benefits and the Government plans to complete the managed migration process by March 2025 for most people.
However, those on tax credits only will be moved before the end of 2024.
The DWP posted on X (formerly Twitter) and said: “Tax credits are ending. Don’t risk missing out on financial support.”
It then said: “Look out for a letter called a Universal Credit Migration Notice from the DWP explaining what you’ll need to do, and by when.
“If you are claiming tax credits and are aged 65 or over, DWP will write to you to ask you to apply for Universal Credit or Pension Credit, depending on your circumstances.
“You won’t be moved automatically, so it’s important to act quickly and follow the instructions in the letter, otherwise, your benefits will stop.
“To continue to receive financial support, you will need to claim Universal Credit by the deadline stated in your Migration Notice letter, even if you have just renewed your tax credits claim.”
In most cases, individuals will be better off following a move from legacy benefits to Universal Credit. But 300,000 could be worse off, and should not move until they are asked to so their payments are protected, or they could lose cash.
Where an individual’s Universal Credit payment is lower than their legacy benefits entitlement, they will usually be entitled to a top-up payment known as Transitional Protection.
This means that their Universal Credit entitlement will be the same as their legacy benefit entitlement at the point they move.
Britons should consider carefully what moving over means for their money, as they can’t move back once they’re on Universal Credit. Using an online benefits calculator can help people compare how much they would be getting.
Millions of households who claim benefits will see their payments rise next April by 6.7 percent, the Government has confirmed.
The average family on Universal Credit will see an increase of around £470 a year from April 2024. This is the equivalent of an increase of around £39 per month.
Under the system, people receive different monthly amounts depending on their circumstances:
- single and under 25 – £292.11
- single and 25 or over – £368.74
- living with partner and both under 25 – £458.51 (for them both)
- living with partner and either are 25 or over £578.82 (for them both)
For those single and over 25, their payments will increase from £368.74 to £393.45 – an increase of £24.71.
For couples on Universal Credit, over the age of 25 and with two children (born on or after 6 April 2017), payment will increase from £1,117.98 to £1,193.44 – a rise of £75.46.
