Within the forthcoming week, a change will be introduced which will have an impact on benefits received by hundreds of thousands of people still on older benefits in the UK. The main change of moving those on income-based JSA and income-related inside support allowance (ESA) to Universal Credit begins.
Universal Credit Migration Notices Sent Out
DWP has caused a sweeping changeover system that affects almost 900,000 claimants. Starting Sep 2, whatever or those who are in receipt of this benefit and housing benefit will try to transition to universal credit. Both housed group who have existed in this category have existed in this category have been accelerated four years earlier than was scheduled initially. Also, Approx. 20,000 persons who are presently on means-tested jobseeker’s allowance (JSA) will also be paying this benefit.
This includes switching over one’s benefits to universal credit, which is compulsory at this point. The people will get official ‘migration notice’ letters, and they will only be given up to three months instead of six to change their benefits. If such actions are not taken within this period, then current payments put out will be terminated, which is why for so many families it is an urgent matter.
Financial Support to Bridge the Gap
In recognition of the possible risks that this change may pose in the finances of the DWP, several mitigating measures are available. Upon applying for Universal Credit, recipients of income based JSA, income related ESA, Income Support and Housing Benefit will be given two weeks worth of their old benefits. This measure is intended to fill the period with wait until the first payment of Universal Credit, which usually comes five weeks after application.
Further, it is also possible to request for an advance on Universal Credit which will be equal to the first payment and will be used to finance essential costs. Although, this advance is created to be quite low and will be repaid within the space of coming payments for the Universal Credit in pieces.
In aiding the shift away from the legacy benefits and into Universal Credit, transitional protection is one of the crucial features. In the event that the amount, which you are entitled to receive under the Universal Credit, is lower than your previous benefits package.
This type of protection makes certain that a person’s total income does not drop immediately or sharply. Rather, the person will see the cut imposed on them slowly and over a period of time in correspondence with the annual up rating of universal credit.
The Bigger Picture: A Nationwide Rollout
The current change forms part of the more extravagant plan to end all legacy benefits in the UK by the close of next year, claiming every person to be eligible for Universal Credit. Such benefits include Working Tax Credit, Child Tax Credit, Housing Benefit, Income Support, income-based JSA and income-related ESA among others. However, it would be worth mentioning other part-time/based benefits, for example Personal Independence Payment that is not going anywhere will still be present.
As for claims regarding cumulative allowance, New Style JSA and New Style ESA absenteeism stipends are not limited by the scope of Universal Credit and can be claimed together but will be off set within the Union Credit. Despite this, some constructive holders opt for these options given that they attract additional National Insurance credits coupled with more regular payments.