Universal Credit Migration News – Beneficiaries to Receive £2800 Less Under New Rules

By Ehsteem Arif

Published on:

Keir Starmer

The latest updates on Universal Credit Migration 2024 reveal significant changes impacting beneficiaries. This article looks into these new rules and who will be most affected by the transition.

Universal Credit Migration 2024

The UK Government aims to streamline the benefits system by introducing Universal Credit (UC), replacing multiple legacy benefits with a single, simplified program. This transition, managed by Her Majesty’s Revenue and Customs and the Department of Work and Pensions (DWP), is a major reform intended to ease the payment process and eliminate the complexities of legacy benefits.

Advertisement

Beneficiaries to Get £2800 Less

Under the new rules, millions of citizens transitioning to Universal Credit may face financial challenges. The migration of Employment and Support Allowance (ESA) claims to UC, originally planned for 2028/29, will now begin by September 2024.

Research indicates that disabled individuals could lose approximately £2,800 annually due to these changes. The DWP in Great Britain and the Department for Communities in Northern Ireland oversee this transition. ESA recipients will receive notifications about shifting to UC by December 2025.

Advertisement

Why Shift to Universal Credit?

The DWP has issued migration notices to around 500,000 legacy benefit recipients, urging them to transition to Universal Credit. This shift is mandatory as new claims for legacy benefits are no longer accepted. Beneficiaries have three main reasons to switch:

  1. Migration Notices: Recipients of these notices must claim Universal Credit by a specified deadline.
  2. Changed Circumstances: If a beneficiary’s situation changes, claiming UC ensures they receive the appropriate allowances.
  3. Voluntary Transition: Some may choose to transition, believing it to be more beneficial.

More than 500,000 families have already shifted to Universal Credit. By September 2024, the Government aims to contact the remaining 440,000 tax credit claimants to encourage their transition.

Advertisement

How to Shift to Universal Credit?

Those receiving a migration notice or opting to transition can claim UC online before the deadline specified in the notice, typically three months. Required information includes:

  • Email address
  • Housing details
  • Payslips
  • Childcare costs
  • Bank, Building Society, or Credit Union account number
  • Investment and saving information

Set up your online UC account through the official UK Government portal and submit your claim. Once you successfully claim, your other benefits will cease, with tax credits stopping the day you claim UC and remaining benefits like JSA and ESA ending after two weeks.

Advertisement

Universal Credit Rates 2024

Funding for Universal Credit typically takes around five weeks. The DWP has adjusted UC rates for 2024, accounting for a 6.7% inflation from June 2024. Basic rates for 2024/25 are:

Category2024 Rate (£)
Single, under 25311.68
Single, 25 and over393.45
Couple, both under 25489.23
Couple, both 25 and over617.60

Recipients with dependent children receive additional payments based on the child’s age. Extra support is also available for disabled children residing with the applicants.

Advertisement

Summary

The Department for Work and Pensions plans to transition beneficiaries of the following legacy benefits to Universal Credit by the end of 2024:

  • Housing Benefit
  • Income Support
  • Child Tax Credit
  • Employment and Support Allowance
  • Working Tax Credit
  • Job Seeker’s Allowance

Universal Credit has been crucial in supporting millions of families with living expenses. Payments are typically made monthly, but some claimants may receive them twice a month, depending on their benefits.

Advertisement

FAQs

How much less will beneficiaries receive under the new rules?

Beneficiaries may lose up to £2,800 annually.

When will ESA claims migrate to Universal Credit?

ESA claims will start migrating by September 2024.

Advertisement

What is the basic rate for a single person over 25 on UC in 2024?

The rate is £393.45.

How long does it take to receive UC payments?

It typically takes around five weeks.

Advertisement

Who manages Universal Credit?

The DWP oversees UC in Great Britain, and the Department for Communities manages it in Northern Ireland.

Advertisement

Disclaimer- We are committed to fair and transparent journalism. Our Journalists verify all details before publishing any news. For any issues with our content, please contact us via email. 

Ehsteem Arif

A tax law expert with a knack for breaking down complex regulations into digestible insights. Ehsteem's articles on the tax news blog offer invaluable guidance to readers navigating changes in tax legislation.

Recommend For You

Leave a Comment