Beginning tomorrow, July 1,more than 90, 000 people currently claiming Employment and Support Allowance (ESA) and Child Tax Credits will be migrated to Universal Credit.
Employment and Support Allowance (ESA) is a state benefit aimed at helping those who, due to sickness or disability, are in a position where they are unable to work.
On the other hand, Child Tax Credit intended as a relief measure for parents with children and who are struggling financially. Nevertheless, both of these have been gradually successfully replaced by the Universal Credit system.
This conversion forms a large part of a large scale Managed Migration exercise where around two million people migrating from various other benefit zones to Universal Credit. As always, it advocates a monumental change to modernise the welfare system. The process of managed migration was launched in November 2022; however, the trial run of the program took place in July 2019.
Those receiving a legacy benefit such as tax credit will be issued with ‘migration notices’ through post detailing how they would have to move to universal credit. Before moving forward, it is urgent to highlight that this transition is not an unaltered process.
From July, DWP will write to those claiming ESA and Child Tax Credits separately to invite them to transfer to UC. They are expected to apply for UC within 3 months of receiving their managed migration letter; otherwise, their benefits will be sanctioned.
Accelerated Timetable to Move from Income-Related Welfare to Universal Credit
The government had stated in January the number of instructions that would be dispatched on migration in the subsequent fiscal year. The first category of SCs included only households that claimed only tax credits initially.
However, after April, 110,000 claimants of income support and the 120,000 more, receiving tax credits and housing benefit, started receiving letters. Starting from June, over one hundred thousand claimants who claimed only housing benefits were contacted.
From the start of July, hundreds of thousands need to transfer from the DWP’s Employment Support Allowance ESA and Child Tax Credits to the new Universal Credit. Also, 20,000 JSA claimants will be involved from September.
The Sun newspaper has stated that, from August, new claims for tax credits are required to apply for either UC or pension credit if they are over SPA.
Initially, it was intended that the claimants with income-related ESA only will not transition until 2028. However, the DWP has brought forward this schedule, to hope to transfer all these households into the UC by the end of 2025.
Previously, it was proposed that people getting only income-related ESA would not migrate until 2028. However, local implementation has pushed this timeline forward and the DWP is now targeting the migration of these households to UC by the end of 2025. From September 2024, 800,000 HC will start getting letters as to how to move from ESA to UC.
Assistance for Claiming Universal Credit
The following are potential resources that can be of help when it comes to the change to Universal Credit. Benefit entitlements may be estimated by the help of benefit calculators, while the local Jobcentres provide some assistance; they are located on the website find-your-nearest-jobcentre.dwp.gov.uk.
Additionally, Citizens Advice provides a free service called Help to Claim:
- England: 0800 144 8 444
- Scotland: 0800 023 2581
- Wales: 08000 241 220