Home Help for families Information & advice Benefits & tax credits Benefits you might be entitled to Universal Credit Moving onto Universal Credit from legacy benefits
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If you currently claim one of the legacy benefits Universal Credit is replacing, there are three ways in which you could be moved to Universal Credit: your circumstances change; the government asks you to claim Universal Credit as part of the “managed migration” process; or you volunteer to claim because you think you will be better off.
Universal Credit replaces new claims for the following existing means-tested benefits:
These are known as the ‘legacy benefits’.
Other benefits such as Carer’s Allowance, Disability Living Allowance (DLA), Child Benefit and Council Tax Reduction continue to exist as separate benefits.
If you currently claim one of the legacy benefits Universal Credit is replacing, there are three ways in which you could move onto Universal Credit: your circumstances change; the government asks you to claim Universal Credit as part of the “managed migration” process; or you volunteer to claim because you think you will be better off.
This podcast episode looks at the different ways that someone might move onto Universal Credit.Read a transcript of this podcast.
Some families may choose to claim Universal Credit because they believe that they will receive more in Universal Credit than they currently get in legacy benefits.
Warning! While it is true that some families will be better off on Universal Credit, many families are actually worse off. And once you claim Universal Credit, you cannot revert back to your old legacy benefits. This is the case even if you are left worse off (and even applies if you get a nil award of Universal Credit). Because of this, you should always seek detailed individual advice before making any decision to volunteer to claim Universal Credit.
You already get a legacy benefit and a change in circumstances means you want to make a new claim for a different legacy benefit. In this case, you will need to make a claim for Universal Credit. This is known as “natural migration” to Universal Credit.
Not all changes of circumstances will lead to you having to consider a claim for Universal Credit. It’s only changes of circumstances that would have previously led to you making a new claim for a legacy benefit.
It’s up to you whether you claim Universal Credit or not. If you do, any existing legacy benefits you get will have to stop.
Warning! It is always worth getting advice before making a claim. Some people are worse off after claiming Universal Credit, and once you claim it, it is impossible to reverse that decision and reclaim your old means-tested benefits. Get advice before choosing to claim Universal Credit to check that a claim will not leave you worse off.
The government plans to eventually ask all existing legacy benefit claimants to claim Universal Credit instead, even if you have no change in your circumstances. It calls this process “managed migration”.
The Department for Work and Pensions (DWP) has said that during 2023/24, it hopes to migrate everyone in Great Britain who is a “tax credits-only” claimant onto Universal Credit. This means anyone getting tax credits, but not other legacy benefits.
Areas where this currently applies are:
From December 2023 it will be rolled out to:
The roll-out initially started with single tax credits-only claimants. The DWP has said it will start to include couples who are tax credits-only claimants too.
The DWP plans to have started migrating tax credits-only claimants in all areas of the country by March 2024.
The roll out of manged migration in Northern Ireland started in October 2023. The Department for Communities has said that the process will start with tax-credit only claimants. Claimants will be selected randomly and this will include households from all Northern Ireland postcodes.
By the end of 2024/25, the DWP plans to migrate onto Universal Credit everyone getting:
This process started in September 2023. Initially this is only happening in the three areas of Manchester, Northumberland and the London Borough of Harrow but it will be rolled out to other areas during 2024/25.
People who get income-related Employment and Support Allowance (irESA) only or income-related ESA alongside Housing Benefit will not migrate until 2028/29.
Once the DWP (Department for Communities in Northern Ireland) selects you to migrate onto Universal Credit, you won’t transfer onto Universal Credit automatically. Instead, you will have to make a claim.
This podcast episode is about what you should do if you receive a managed migration notice from the Department of Work and Pensions telling you that your existing legacy benefits are ending and you need to claim Universal Credit.Read a transcript of this podcast.
You’ll receive a “migration notice” in writing that your legacy benefits will be ending.
You’ll receive a date three months from the date on your migration notice within which to make a claim for Universal Credit. This is known as your deadline day. The DWP can extend your deadline day if there are good reasons.
It is up to you whether you claim Universal Credit straight away or wait until closer to the deadline day.
If you haven’t claimed Universal Credit by your deadline day, you will have a further month within which to claim Universal Credit. This is your “final deadline day”. So long as you claim before your final deadline day, your Universal Credit claim will be automatically backdated to your deadline day, and you will be eligible for transitional protection. (Although remember: your tax credits will have stopped on the deadline day, with other legacy benefits stopping two weeks later – see below).
If you don’t claim Universal Credit by your final deadline day, you can still claim Universal Credit at a later date, but you will have a longer gap with no benefit payments and you won’t be eligible for any transitional protection.
You’ll normally have to claim for Universal Credit online, but you can also use the Universal Credit Migration Notice helpline if necessary.
Your tax credit payments will stop on the date you claim Universal Credit, or on your deadline day if you haven’t lodged a claim for Universal Credit by then. Any other legacy benefits you get, i.e. Income Support, Housing Benefit, income-based JSA or income-related ESA, will run on for a further two weeks.
So if you claim Universal Credit before your deadline day, any tax credits you get will stop from the day before you claimed Universal Credit. Any other legacy benefits will stop two weeks after the date you claimed Universal Credit.
If you claim Universal Credit after your deadline day, any tax credits will stop from the day before your deadline day. Any other legacy benefits you get will stop two weeks after your deadline day.
Regardless of whether you claim Universal Credit before or after your deadline date, once you have lodged a claim, you will have a wait of at least five weeks before you get your first Universal Credit payment. If this wait causes you financial hardship, you can ask for an advance payment. An advance payment is a loan that you will need to repay to the DWP from your future Universal Credit payments.
So long as you have claimed Universal Credit either by your deadline day or your final deadline a month later, you will be eligible for transitional protection payments. These are supposed to make sure that you are no worse off on Universal Credit. If you don’t claim Universal Credit by your final deadline day, you won’t be considered for transitional protection. This is the case even if you eventually claim Universal Credit at a later date.
Warning! People selected for managed migration have no option but to claim Universal Credit. The situation is different if you have not received a migration notice. There is nothing preventing you from volunteering to move onto Universal Credit before you receive a migration notice. However, this may not be a good idea. People who choose to claim Universal Credit early, rather than waiting to receive a migration notice, cannot usually get transitional protection.
Many families with a disabled child will be worse off under Universal Credit. Once you claim Universal Credit, you cannot move back onto your old legacy benefits. You can check your likely entitlement to Universal Credit using the benefit calculator on our website.
Many families with a disabled child end up worse off under Universal Credit. This is particularly likely if you are an out-of-work family with a disabled child who does not qualify for the higher disability addition.
This is because the lower rate of the child disability addition is £33.70 per week (£146.31 per month). The equivalent additional payment under the existing benefits system is £74.69 per week. This represents a cut of £40.99 per week, or just over £2,131 per year. Since the child disability addition is for each disabled child, families with two children on the lower addition could lose twice this amount.
You can find out more about this issue in our briefing – Universal Credit and Disabled Children.
The government has said that it will transitionally protect some existing claimants. This applies only to existing claimants who the government moves onto Universal Credit as part of ‘managed migration‘.
You are not eligible for transitional protection if either:
You might be able to receive top-up payments to ensure you are no worse off under Universal Credit.
Transitional protection rules are supposed to ensure that families who would qualify for lower payments under Universal Credit receive top-up payments so that they are no worse off than before. This top-up is known as a transitional element.
The DWP compares the amount you receive under legacy benefits (your “total legacy amount”) with an indicative amount it expects you to get under Universal Credit. If your indicative amount is lower than your total legacy amount, you will receive a transitional element to make up the difference.
In order to be eligible, you need to claim Universal Credit either by:
If you do not claim by the final deadline, you will not be eligible for transitional protection. This is so even if you claim Universal credit at some later date.
For example, Sarah receives Child Tax Credit of £900 per month and Housing Benefit of £1,000 per month. Her total legacy amount is therefore £1,900 per month. Her indicative amount is £1,700 per month. So long as she claims Universal Credit after receiving her migration notice but before her final deadline, she will receive a transitional element of £200 pm.
Unfortunately, it appears that not every family who is worse off on Universal Credit will be transitionally protected. In particular, families who have been getting Child Tax Credit payments for a “looked after” disabled child in a residential setting are likely to be significantly worse off when they move onto Universal Credit. This is because they will not receive transitional protection payments to make up for the less generous treatment of their “looked after” child under Universal Credit. If this applies to you and you have received a managed migration notice, get urgent advice about requesting that your managed migration notice be cancelled.
There is also a risk that other families who are manage migrated onto Universal Credit won’t be transitionally protected. Seek urgent advice before making any Universal Credit claim if you are getting tax credits for either:
Those on tax credits with capital of more than £16,000 will be eligible for transitional protection. However, this will be only temporary. There is a special “transitional capital disregard”. Under this rule, any capital you have above £16,000 will be ignored, but only for a maximum of 12 months. If you still have more than £16,000 in capital after 12 months, your Universal Credit award will end.
Transitional protection payments will not be uprated annually with inflation and can be reduced or even ended altogether as a result of certain changes in circumstances. This means that even those receiving transitional protection will still be worse off over time.
If you had to claim Universal Credit because you had a change of circumstances, you will not get transitional protection. Similarly, you won’t be eligible for transitional protection if you choose to claim Universal Credit. (For example, because you think you might be better off.)
There are only two exceptions to this:
1. Disabled adults already on Universal Credit who previously qualified for severe disability premium as part of their legacy benefit. These adults should receive transitional payments to compensate for the loss of the severe disability premium.
2. Families who had to move onto Universal Credit as a result of a DWP mistake and now receive a lower disabled child addition than under legacy benefits. (An example of such a mistake: DWP stopped your child’s DLA before reinstating it on appeal. The stoppage meant your Income Support claim as a carer ended). In this case, you should either get a transitional payment or let back onto legacy benefits. This is as a result of the Court of Appeal decision in R (TD & Ors) v Secretary of State for Work and Pensions. Phone our free helpline for more details if you think this applies to you.
Even if you are someone who receives transitional protection, you are still likely to be worse off over time. Transitional protection payments will not be uprated with inflation. Some changes in circumstances will also reduce the amount of transitional protection you receive.
There are three ways that someone might move from legacy benefits onto Universal Credit:
No. Although this process is called managed migration, you won’t move over onto Universal Credit automatically. Instead, there are steps you will need to take. You will need to make a claim for Universal Credit within three months of receiving written notice that your existing legacy benefits will be ending.
Universal Credit is not replacing any other benefits such as Carer’s Allowance, council tax support or Disability Living Allowance / Personal Independence Payment.
The government is prioritising asking tax credits-only claimants to claim Universal Credit. It hopes that managed migration will apply to tax-credits only claimants in all parts of the country by the end of 2023/24.
This means that if you claim tax credits only, the DWP can ask you to migrate onto Universal Credit if you live in an area where tax credits-only claimants must claim Universal Credit.
In the meantime, if you don’t live in one of the areas mentioned above, keep checking our website for updates.
From September 2023, the government plans to ask some people on legacy benefits such as Housing Benefit and Income Support to claim Universal Credit. Currently this is only happening in the three areas of Manchester, Northumberland and the London borough of Harrow. The government hopes to have moved all claimants on legacy benefits other than income related ESA (irESA) onto Universal Credit by April 2025. Claimants on irESA only or irESA and Housing Benefit won’t be asked to claim Universal Credit until 2028/29.
You won’t move onto Universal Credit automatically. Instead, you will have to make a claim for Universal Credit.
You’ll receive a “migration notice” in writing that your legacy benefits will be ending. You’ll have three months from the date on your migration notice within which to make a claim for Universal Credit. After this, your legacy benefits will stop. The DWP can extend this three-month deadline if there are good reasons.
Your legacy benefit payments will stop on the date you claim Universal Credit, or on your deadline day if you haven’t lodged a claim for Universal Credit by then. If you haven’t claimed by your deadline day, you will have a further month within which to claim Universal Credit (although your legacy benefits will have already stopped). This is known as your final deadline.
So long as you have claimed Universal Credit either by your deadline day or your final deadline a month later, you will be eligible for transitional protection payments. If you don’t claim Universal Credit by your final deadline, you won’t get transitional protection. This is the case even if you eventually claim Universal Credit at a later date.
Under Universal Credit, some people are better off, but others are worse off.
So long as you claim Universal Credit under managed migration rules and within the three-month deadline (or your final deadline one month later), you’ll be eligible for transitional protection payments. These transitional protection payments are supposed to top-up your Universal Credit if it’s less than what you were getting under legacy benefits.
If you do not claim by the deadline (or any agreed extension), you will not be eligible for transitional protection. This is so even if you claim Universal Credit at some later date.
Transitional protection for managed migration claimants will be limited for those with capital of more than £16,000. The capital they have above £16,000 will be ignored for only 12 months. If they still have more than £16,000 in capital after 12 months, their Universal Credit award will come to an end.
Certain changes of circumstances will reduce the amount of transitional protection or can even bring it to an end. In addition, transitional protection payments will not be uprated with inflation, so even those getting transitional protection payments will be worse off over time. Contact also has concerns that transitional protection will not make up reductions experienced by some families in specific circumstances such as those with a child in residential accommodation who is treated as ‘looked after’ by their local authority.
The information set out above applies to England, Wales and Scotland. Northern Ireland has very similar rules about managed migration onto Universal Credit but there may be some differences. Contact a local advice service in Northern Ireland for more detailed advice.
Universal Credit is a new benefit for people of working age. It is paid both to people who are out of work…
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