Tax Credit benefits will soon be completely replaced by Universal Credit, leaving many needing to make a new claim.
Britons are being urged to keep an eye out for a letter called a Universal Credit Migration Notice from the Department for Work and Pensions (DWP) explaining what they’ll need to do, and by when.
To continue to receive financial support, people who receive a letter will need to claim Universal Credit by the deadline stated – even if they have just renewed their Tax Credits claim.
A statement published on the Government’s Understanding Universal Credit website detailing the changes reads: “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.”
The DWP has provided a number of steps people can take to prepare for the change, however, it stressed: “It’s important to wait for your Migration Notice letter before you switch over and follow the instructions in the letter closely.”
The steps include using a benefits calculator to estimate if and how their payments may change with Universal Credit, as well as finding an independent local benefits advisor to speak to through Advice Local.
The DWP stated: “If the amount you are entitled to on your existing benefits is more than you will get on Universal Credit, where eligible, you can receive a top-up amount called Transitional Protection.”
Universal Credit is a modern benefits system designed to help people in work, looking for work or unable to work.
It brings together six older benefits and helps ensure people receive the financial support they’re entitled to, all in one place.
Claiming Universal Credit can also deem a person eligible for more financial support to help cover other costs, such as housing, certain bills and more.
It can also help pay for childcare costs and provide access to a work coach, who can give tailored guidance to help people progress professionally.
Payments can adapt to personal circumstances, for example, if claimants find themselves out of work unexpectedly, their Universal Credit payment will adjust automatically.
A number of other benefits are also going to be replaced by Universal Credit, including Housing Benefits, Income Support, Income-based Jobseeker’s Allowance (JSA) and Income-related Employment and Support Allowance (ESA).
