Universal Credit Shake-up will affect 500 people starting Monday – what you need to know

Old-style legacy benefits are being phased out, with the “migration process” of moving people to Universal Credit resuming on Monday, May 9th. Initially, only about 500 people will be invited to move

The so-called “migration process” to shift beneficiaries to Universal Credit will restart next week, which will ultimately affect millions of Brits.

In the UK, around 2.6 million people still claim old-style benefits.

These include tax credits, earnings-related unemployment assistance (JSA), income support, earnings-related Employment and Assistance Allowance (ESA), and housing benefit.

Those benefits will eventually be phased out, with the “migration process” of people switching to Universal Credit resuming on Monday, May 9th.

This process had been temporarily suspended during the Covid pandemic.

Only around 500 people will be invited to move initially, but the Department for Work and Pensions (DWP) will increase the number of people it processes over the next few months.

Everyone will eventually transition from the older welfare system to Universal Credit by December 2024.

Anyone applying for new benefits now will automatically receive Universal Credit.

When it’s your turn to be switched to the new system, you’ll receive a “migration notice” in the mail, giving you three months to apply for Universal Credit.

Were you told you were switching to Universal Credit? Let us know: mirror.money.saving@mirror.co.uk

If you do not apply for Universal Credit within this time, your current benefits will automatically cease after this period.

Some people may switch to Universal Credit early if they notice a change in circumstances — for example, moving home or changing their work hours.

As we mentioned above, everyone will eventually migrate — but you can migrate sooner if you think you’re better off.

Not everyone will get more money with Universal Credit. The DWP claims that 1.4 million (55%) would be better off under the new system and 900,000 (35%) would be worse off.

The other 300,000 beneficiaries will see no change.

We have a guide here on how to check if you’re better off with Universal Credit.

Once you apply for Universal Credit, your old benefits will stop — you’ll then have to wait five weeks for your first Universal Credit payment to arrive.

Some legacy benefits will “roll on” for two weeks to fill some of this gap.

These include Housing Benefit, Income Support, Earnings-Related Employment and Support Allowance, and Earnings-Related Unemployment Assistance.

Both types of tax credits stop paying once you claim Universal Credit.

Which services are replaced?

Universal Credit replaces the following six benefits:

• Labor Tax Credit
• child allowance
• Earned Unemployment Assistance (JSA)
• social care
• Income-related Employment and Support Allowance (ESA)
• housing benefit

Most of those moving to Universal Credit relate to ESA (1.2 million) or tax credits (1 million).

200k receive welfare and 100k each housing benefit and JSA.