The Department for Work and Pensions (DWP) has issued a stark warning to those on legacy benefits, as the shift to Universal Credit continues, potentially impacting household incomes during the festive season.
According to Birmingham Live, the Government has advised: “Move to Universal Credit if you get a migration notice letter. As one or more of your benefits will be ending soon, you need to move to Universal Credit (UC).
“To continue receiving financial support you must claim Universal Credit by the deadline date given in your letter. This is three months from the date the letter was sent out.”
Legacy benefits encompass Housing Benefit, Child Tax Credit, Working Tax Credit, Income Support, income-based Jobseeker’s Allowance and income-related Employment Support Allowance.
Those on the latter benefit, especially if they are also claiming Personal Independence Payment (PIP), may need to give extra consideration to their transition to UC.
The switch to UC won’t occur automatically for any legacy benefit recipients; they’ll have to apply for the new benefit themselves.
Their migration notices, which are being dispatched throughout September, will provide instructions on how to do this and specify their deadline.
Benefit claimants are being warned they have a three-month window from the date their letter was issued to switch to Universal Credit (UC), with those receiving correspondence this month potentially facing payment disruptions in December as legacy benefits come to an end.
Moneyhelper has issued a stark warning to individuals not to overlook their migration notices and to “act quickly”. They emphasised: “We also strongly recommend you get advice from a benefits specialist before you move from legacy benefits to Universal Credit,” highlighting the complimentary service provided by Citizen’s Advice.
Moreover, it’s important for claimants to remember that UC payments are made monthly in arrears, necessitating a wait of one full assessment period, which equates to one calendar month, for the initial payment.
For those who may find themselves financially stretched during this interval, there is an option to request an advance payment; however, be aware that this amount must be repaid within 24 months.
