Thousands on employment and support allowance could be asked to make big change this month – as part of new trial
THOUSANDS of individuals claiming employment and support allowance (ESA) could be asked to make a big change this month.
The Department for Work and Pensions (DWP) is trialling asking these individuals to apply for Universal Credit.
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It comes ahead of a wider rollout, in which all claimants on ESA will be asked to move from September 2024.
In April, the DWP brought forward its plans to move those on income-related ESA to Universal Credit by three years.
All two million claimants on legacy benefits are set to move to Universal Credit (UC) or pension credit under a process known as managed migration.
Universal Credit was set up to replace legacy benefits.
The managed migration process began in May last year after a successful pilot in July 2019.
Eligible households are being contacted via letters explaining how to make the move from tax credits to Universal Credit.
The DWP is now sending letters to selected households on ESA this month to help prepare for the wider roll-out later this year.
The government had previously delayed the transition for those on income-related employment and support allowance (ESA) or ESA and housing benefit until 2028/29.
Claimants are now expected to complete their move to Universal Credit by the end of 2025 – three years ahead of schedule.
It’s vital that households apply for Universal Credit within three months of receiving their managed migration letter.
Failing to do this can result in benefits being stopped.
Since March 2024, the Department for Work and Pensions (DWP) has sent nearly 824,050 migration notices.
However, according to the DWP’s latest figures, 184,120 individuals lost their benefits after failing to act on migration notices received between July 2022 and March 2024.
Some 400,940 individuals have since made successful claims for Universal Credit, and another 238,990 are still in the process of transitioning.
What is managed migration?
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.
It’s also worth asking them for advice.
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.
This is known as “managed migration” .
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 are being contacted in June.
More than 90,000 people claiming employment and support allowance (ESA) along with child tax credits will start being asked to switch from July.
Meanwhile, 20,000 claimants on jobseekers allowance (JSA) will be contacted from September.
The Sun previously reported that, from 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 originally 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.
From September 2024, 800,000 households will begin to receive 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?
Around 1.4million will be better off on Universal Credit, the government calculates.
A further 300,000 will see no change in payments, while around 900,000 will be worse off under Universal Credit.
Of these, around 600,000 are expected to get top-up payments if they move under managed migration, 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.
Examples of those who may be entitled to less on Universal Credit according to the government include:
Households getting ESA who 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 (eg 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)
But they could miss out on any future increase to benefits and see payments frozen.
Those who move voluntarily and are worse off won’t get these top-up payments and could lose cash.
Those who miss the deadline and later make a claim may also not get this transitional protection either.
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.
The most recent data from the DWP shows 61,130 individuals have made a claim for UC, and 39,920 awarded transitional protection.
Another 40,540 are still in the process of moving to the new benefit.
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