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Новости от TheMoneytizer

DWP benefit warnings as thousands could see payments stop before Christmas – check you must make now

TENS of thousands of households on benefits need to take action within weeks or risk having their payments stopped before Christmas.

This warning comes as the Government continues to move all two million claimants on legacy benefits to Universal Credit by the end of March 2025 through a process known as managed migration.

Getty
Universal Credit is replacing six benefits under the old welfare system[/caption]

The transition officially started in November 2022 after a successful pilot in July 2019.

As part of this process, households on legacy benefits, including tax credits, receive “migration notices” by post.

These notices provide instructions on how to switch to Universal Credit, as the transition is not automatic.

Households must apply for Universal Credit within three months of receiving their migration notice.

Failing to do so can result in their benefit payments being stopped.

Over 284,660 individuals have already lost their benefits after failing to switch to Universal Credit within the three-month deadline.

The latest migration notices are being sent to over 800,000 households who claim employment and support allowance (ESA).

So, if you received one in September or at the beginning of October, you’ll need to ensure you switch to Universal Credit before Christmas, or before your three-month deadline is up.

If you don’t do this, you could be without this income during the festive period.

Your migration notice will state the exact deadline you have to make the switch.

A DWP spokesperson said: “We are committed to ensuring all customers receive the support they need from our staff and services.

“The department has a wide range of support available to all individuals, particularly those who are vulnerable.”

THOUSANDS HAVE ALREADY HAD THEIR BENEFITS CUT

Since July 2022, the Department for Work and Pensions (DWP) has sent nearly 1.14million migration notices.

However, according to the DWP’s latest figures, 284,660 individuals lost their benefits after failing to act on migration notices received between July 2022 and June 2024.

Which benefits are stopping?

UNIVERSAL Credit is replacing six benefits under the old welfare system, commonly called legacy benefits. They are:

  • Working tax credit
  • Child tax credit
  • Income-based jobseeker’s allowance
  • Income support
  • income-related employment and support allowance
  • Housing benefit

If you’re on any of these benefits now, you can choose to move over – but you might not be better off.

You should consider carefully what moving over means for your money, as you can’t move back once you’re on Universal Credit.

Using an online benefits calculator, which is free and easy to use from charities such as Turn2Us and EntitledTo, can help you compare.

You may be moved to Universal Credit if your circumstances change, such as moving home, changing your working hours, or having a baby.

But eventually everyone will be moved over to Universal Credit under the managed migration process.

Some 623,310 individuals have since made successful claims for Universal Credit, and another 232,830 are still in the process of transitioning.

Last month, The Sun revealed that around 171,750 households receiving tax credits who were sent migration notices between November 2022 and December 2023 have had their benefits stopped.

That’s according to new figures from the DWP, provided to anti-poverty charity Z2K via a freedom of information request.

Experts have previously warned that managed migration poses a risk to vulnerable people who face losing money.

Top bosses at charities, including Mind, The Trussell Trust, Turn2Us and the Money and Mental Health Policy Institute, said in 2022 that around 700,000 with mental health problems, learning disabilities, and dementia could struggle to engage with the process.

More than 20 organisations have called on the government to halt managed migration to fix flaws in the system that could cause those at risk to fall through.

MANAGED MIGRATION PROGRESS

In January, the government announced the number of migration notices it plans to send out in the coming financial year.

Before this date, the focus was sending migration notices to households claiming tax credits only.

However, 110,000 income support claimants and a further 120,000 claiming tax credits with housing benefit started receiving their letters in April.

Over 100,000 housing benefit-only claimants were contacted in June.

More than 90,000 people claiming employment and support allowance (ESA) along with child tax credits started being asked to switch in July.

Meanwhile, 20,000 claimants on jobseekers allowance (JSA) will be contacted from September.

The Sun previously reported that, in August, those claiming tax credits who are over state pension age will be asked to apply for either Universal Credit or pension credit.

It was initially planned that those claiming income-related ESA alone would not be moved until 2028.

However, the DWP brought forward plans to move these households to Universal Credit by the end of 2025.

Since September 2024, 800,000 households have begun receiving letters explaining how to move from ESA to Universal Credit.

HELP CLAIMING UNIVERSAL CREDIT

As well as benefit calculators, anyone moving from tax credits to Universal Credit can find help in a number of ways.

You can visit your local Jobcentre by searching at find-your-nearest-jobcentre.dwp.gov.uk/.

There’s also a free service called Help to Claim from Citizen’s Advice:

  • England: 0800 144 8 444
  • Scotland: 0800 023 2581
  • Wales: 08000 241 220

You can also get help online from advisers at citizensadvice.org.uk/about-us/contact-us/contact-us/help-to-claim/.

Will I be better off on Universal Credit?

ANALYSIS by James Flanders, The Sun’s Chief Consumer Reporter:

Around 1.4million people on legacy benefits will be better off after switching to Universal Credit, according to the government.

A further 300,000 would see no change in payments, while around 900,000 would be worse off under Universal Credit.

Of these, around 600,000 can get top-up payments (transitional protection) if they move under the managed migration process, so they don’t lose out on cash immediately.

The majority of those – around 400,000 – are claiming employment support allowance (ESA).

Around 100,000 are on tax credits, while fewer than 50,000 each on other legacy benefits are expected to be affected.

Those who move voluntarily and are worse off won’t get these top-up payments and could lose cash.

Those who miss the managed migration deadline and later make a claim may not get transitional protection.

The clock starts ticking on the three-month countdown from the date of the first letter, and reminders are sent via post and text message.

There is a one-month grace period after this, during which any claim to Universal Credit is backdated, and transitional protection can still be awarded.

Examples of those who may be entitled to less on Universal Credit include:

  • Households getting ESA and the severe disability premium and enhanced disability premium
  • Households with the lower disabled child addition on legacy benefits
  • Self-employed households who are subject to the Minimum Income Floor after the 12-month grace period has ended
  • In-work households that worked a specific number of hours (e.g. lone parent working 16 hours claiming working tax credits
  • Households receiving tax credits with savings of more than £6,000 (and up to £16,000)

Either way, if these households don’t switch in the future, they risk missing out on any future benefit increase and seeing payments frozen.

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