The UK government is set to reform the benefits system by transitioning from multiple legacy benefits to a single benefit system known as Universal Credit (UC). While this change aims to simplify the system, it has raised concerns, particularly for disabled individuals who could face significant financial losses. Here’s a detailed look at the Universal Credit migration, its impact, and what beneficiaries need to know.
The Universal Credit system was introduced to replace several existing benefits, streamlining the payment process through a digital system. Both Her Majesty’s Revenue and Customs and the Department for Work and Pensions (DWP) are facilitating this transition. By September 2024, the migration of Employment and Support Allowance (ESA) claims to Universal Credit will commence, which was originally scheduled for 2028/29.
The shift to Universal Credit is expected to economically affect disabled individuals the most, with research indicating they might lose approximately £2,800 annually. This transition impacts millions of citizens reliant on benefits, and those currently on legacy benefits must move to Universal Credit to continue receiving support. The DWP will notify ESA recipients about the transition by December 2025.
Why Shift to Universal Credit?
The DWP has been sending migration notices to approximately 500,000 legacy benefit recipients, informing them about the need to switch to Universal Credit. New claims for legacy benefits can no longer be initiated. Beneficiaries are advised to transfer to Universal Credit through one of the following methods:
Migration Notices: Recipients must act by the deadline specified in the migration notice to claim Universal Credit.
Changed Circumstances: If there are changes in the beneficiary’s situation, claiming Universal Credit might be beneficial.
Voluntary Claims: Some beneficiaries may choose to claim Universal Credit voluntarily, believing it offers better support.
Transition Process
To transition from legacy benefits to Universal Credit, beneficiaries who receive a migration notice must claim online before the deadline (usually three months from notice). Required information includes:
Setting up an online UC account and submitting a claim on the UK Government portal will initiate the transition. Legacy benefits like tax credits will stop immediately upon claiming Universal Credit, while benefits like JSA and ESA will cease after two weeks.
Universal Credit Rates 2024
Universal Credit rates have been adjusted for inflation, reflecting a 6.7% increase from June 2024. Here are the basic rates for 2024/25 for adults over 25:
Category
2024/25 Rates
Single individual below 25
£311.68
Single individual above 25
£393.45
Couples under 25
£489.23
Couples over 25
£617.60
Additional monthly payments are available for recipients with dependent children, with extra support for disabled children.
By the end of 2024, the DWP aims to transition beneficiaries from the following legacy benefits to Universal Credit:
Housing Benefit
Income Support
Child Tax Credit
Employment and Support Allowance (ESA)
Working Tax Credit
Job Seeker’s Allowance (JSA)
Universal Credit has been essential in supporting millions of families with their living expenses. Payments are typically made monthly, though some claimants may receive payments twice a month.
The Universal Credit migration represents a significant change in the UK benefits system, aiming to simplify and streamline support for millions of citizens. However, the transition poses financial challenges, particularly for disabled individuals. Staying informed and promptly responding to migration notices will be crucial for beneficiaries to ensure they continue receiving the support they need.
FAQs
What is Universal Credit?
A single benefit replacing multiple legacy benefits to simplify the system.
When will ESA claims migrate to Universal Credit?
By September 2024.
How much could disabled individuals lose annually?
Approximately £2,800.
What information is needed to claim Universal Credit?
Email, housing details, payslips, childcare costs, bank account details, and savings information.
What are the new Universal Credit rates for 2024?
Rates vary, with singles over 25 receiving £393.45 and couples over 25 getting £617.60.
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