The Department for Work and Pensions (DWP) is managing the transition of several benefits, including Housing Benefit, to Universal Credit. It’s important for anyone currently receiving benefits to be aware of how this change may impact them.
To assist with the process, UK Debt Expert has teamed up with the DWP to ensure that everyone in Scotland is prepared, aware of what to expect, and can avoid any disruption to benefit payments.
What is Universal Credit?
Universal Credit is a payment designed to help cover living costs.
In Scotland, Universal Credit is typically paid twice a month, but some people may choose to receive it monthly, similar to those in England, Wales, and Northern Ireland.
You may be eligible for Universal Credit if you are on a low income or need help with everyday living expenses.
To qualify, you must be living in the UK, aged over 18 but below state pension age, and have £16,000 or less in savings, investments, or other assets.
For more information on eligibility, you can visit this link.
Which benefits will be replaced by Universal Credit?
The following six benefits and tax credits will be replaced by Universal Credit:
- Child Tax Credit
- Working Tax Credit
- Housing Benefit
- Income Support
- Income-based Jobseeker’s Allowance (JSA)
- Income-related Employment and Support Allowance (ESA)
If you currently receive any of these benefits, you should watch out for a letter from the DWP, which will provide further details on the changes and what steps you’ll need to take.
What action do I need to take?
Yes, you will need to take action if you currently receive benefits. The switch to Universal Credit requires you to submit a new claim. This won’t happen automatically, but the DWP will send you a letter—called a Migration Notice—outlining the steps you need to follow.
The Migration Notice will explain what actions you need to take and by when. It will also provide guidance on how to continue receiving financial support during the transition to Universal Credit.
Once you’ve received your Migration Notice, you’ll need to apply for Universal Credit to ensure you continue receiving financial support.
Make sure to pay attention to the deadline in the letter—you will have three months from the date of the notice to make your claim.
If you do not apply within this timeframe, your current benefit payments could stop. Also, once you submit your Universal Credit claim, your existing benefits will cease, and you won’t be able to return to your previous benefits.
How much Universal Credit will I receive?
If the amount of Universal Credit you’re entitled to is lower than the benefits or tax credits you were previously receiving, you may be eligible for ‘transitional protection’ to help cover the difference.
Here’s an example of how it works:
Joe currently receives £700 in benefits and tax credits.
Under Universal Credit, his entitlement is £600.
Therefore, Joe will receive £100 in transitional protection to cover the gap.
To qualify for transitional protection, you must:
- Apply for Universal Credit only after receiving your Migration Notice
- Submit your application before the deadline stated in the letter
- Ensure your circumstances remain the same throughout the transition
For more details on payment protection, you can visit this link.
When will I receive my Migration Notice?
The DWP has been sending out Migration Notices since the start of the year. You may have already received your letter if you currently receive:
- Tax Credits and are below state pension age
- Tax Credits and Housing Benefit
- Income Support (either alone or combined with Tax Credits and/or Housing Benefit)
- Housing Benefit only
- Income-related Employment Support Allowance (ESA) alongside Child Tax Credits
- Tax Credits (if you are of state pension age and asked to move to Pension Credit)
If you haven’t yet received your letter and you are on one of the following benefits, expect it to arrive in the coming weeks or months:
- Tax Credits (if you are of state pension age and asked to move to Universal Credit)
- Income-based Jobseeker’s Allowance (JSA)
- Employment and Support Allowance (ESA) only
- ESA combined with Housing Benefit
What support is available?
There is a range of support available to help you through the transition to Universal Credit. This includes assistance with your application, as well as managing your finances until your first Universal Credit payment is made.
For further information, visit www.gov.uk/ucmove.
