Update on Universal Credit

Published: Thursday 18 May 2023

This is a general image showing someone getting advice

Did you know that more and more ‘legacy benefits’ are being replaced by Universal Credit (UC)?

This means you can’t usually make a new claim for Income Support, Job Seekers Allowance, Child Tax Credits, Working Tax Credits, Housing Benefit or Employment Support Allowance (ESA) and need to make a claim for UC instead. This is what the DWP call natural migration. This can also happen if you are claiming ESA and are found fit for work or if you or your partner are in receipt of legacy benefits and
then separate.

Another way you may have to make a claim for UC is when you are part of the managed migration process. This happens when you receive a letter from the DWP, called a “migration notice”, advising you to apply for UC. This means you must make a claim for UC before the date confirmed in your letter. If you don’t make your claim in time your old benefit payments may stop.

Managed migration means that during 2023/24, everyone who claims Tax Credits only, will be required to make a claim for UC.

During 2024/25, everyone claiming Tax Credits (including those on both Employment and Support Allowance and Tax Credits), or claiming Income Support and Jobseeker’s Allowance (income-based) and everyone who claims Housing Benefit (including combinations of these benefits) will be required to move to UC.

Here are some things you should know before you move to UC:

  • UC is paid monthly in arrears
  • you have to wait at least 5 weeks for the first payment of UC after a new claim
  • normally you are expected to claim and manage UC online
  • if you have a partner, they will also receive a migration notice and you need to make a joint claim for UC
  • help with rent is paid with your UC, it is called Housing Costs
  • there are more work-related requirements in UC
  • after a new claim for UC, old Tax Credit arrears may be deducted from your UC

You should not make a claim for UC unless you have been advised to by the DWP or are sure you would be better off and can manage the UC claimant process. That’s why it’s important to get independent advice before you make a claim, as you will not be able to go back to Tax Credits once you have moved to UC.

In the meantime, we want to make sure you are getting the correct amount of benefit/UC you are entitled to, especially during these difficult times. You can do this by carrying out a benefits calculation online. 

If you prefer, you can speak to your local Money Matters Advice Service or your local Citizens Advice Bureau for further advice and assistance. 

You can also speak to the Rent Income Support Team on 0303 123 1012 or email them, they can help support you to apply for UC, pay rent, apply for Discretionary Housing Payments or Council Tax Reduction.