With all of us looking for ways to keep costs down and make every penny count, those people who are on benefits will want to make sure they are getting everything they are entitled to.
However, a major change is set to take effect in some parts of the country in August, with Universal Credit coming in in place of certain benefits.
What’s changing and will you be affected? Here’s what you need to know…
What change is coming to Universal Credit?
The change will see five more regions of the UK joining the ‘Managed migration’ scheme which sees those claiming so-called ‘legacy benefits’ such as tax credits moved on to Universal Credit instead.
A pilot version of the scheme was tested in Harrogate in 2019 but was officially launched in May 2022.
The intention is to move the two million or so people on legacy benefits, to Universal Credit by the end of 2024.
People in the affected regions will be contacted by the Department Of Work and pensions from August onwards,
They will be told they have three months to make the switch – or risk losing their benefits altogether.
The move will leave most of those affected better off – but around 300,000 people may stand to receive less money, and should wait as long as possible before moving to Universal Credit.
Those people who stand to lose out will usually be entitled to a top-up payment known as Transactional Protection – which will make up the deficit.
Which areas are affected?
If you claim legacy benefits and live in one of the following areas, you’re likely to be affected:
- West Scotland
- West Yorkshire
- Staffordshire
- Derbyshire
- South London
Currently, the rollout of managed migration will affect those on tax credits, with the following to move to Universal Credit in 2024/2025
- Income Support, income-based Job Seeker’s Allowance and Housing Benefit (including where paid alongside tax credits)
- Tax credits alongside income-related Employment and Support Allowance.
People who only receive Income-related Employment and Support Allowance will not be migrated on to Universal Credit until 2028.
MORE : Dairy Milk bars and Ferrero Rocher locked away at Co-op as cost of living bites
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