Money Matters: 'Legacy benefit' claimants risk losing money if they miss Universal Credit application deadline
In this week’s Money Matters column, Wrekin’s Debt and Energy manager Dan Bebbington looks into how the rollout of Universal Credit is going and how it affects those still receiving ‘legacy benefits’.
The process of moving claimants of different ‘legacy benefits’ over to Universal Credit is now well underway.
‘Managed Migration’ affects those receiving Housing Benefit, Working Tax Credits, Child Tax Credits, Income Support, Income-based Jobseekers Allowance and Income-based Employment Support Allowance.
Tax credits will be the first legacy benefits to end this April, and the Government says the others will follow by April 2026.
Notices are being sent to everyone who claims these benefits, letting them know it’s time to make an application for Universal Credit. It’s important not to do anything until you receive your migration notice.
When you do receive the letter, it will give you a deadline by which you need to apply for Universal Credit. You cannot opt to stay on your previous benefits.
You will need to make a claim to Universal Credit before the date shown in your letter. If you don’t, you risk your benefits stopping. So far, the Government says nearly a quarter of households have seen their payments stopped as they had not claimed UC by their deadline.
If you haven’t yet received a Migration Notice, don’t worry. You should receive it by the end of the year.
When you receive your migration notice, it will contain details of the UC migration helpline which you can call for free for help and advice on making your claim to UC. You can also visit your local Job Centre and speak to the advisors there.
By moving to UC after you receive your Migration Notice – and before the deadline on your letter – your income will not be reduced.
The Government has said most people should be better off on UC than legacy benefits, but if your UC amount is less than you were receiving under your other benefits you will receive ‘transitional protection’. This is a payment to top up your UC to the amount you were previously receiving.
Universal Credit is different to other allowances and benefits as it is all combined into one monthly payment into your bank, and it will also include any help you get towards your rent.
When you move onto Universal Credit, you can set up a direct debit to pay your rent. If you are worried about doing this or need advice, please speak to your local Housing Team, or your landlord if you rent privately.
Universal Credit does not include help towards your council tax. You will need to make a separate claim to your local council for this.
Wrekin Housing Group customers who have concerns or questions about Managed Migration can contact our Money Matters Team.
