The UK government is making a big change to its benefits system, moving from several different payments to one system called Universal Credit (UC).
This switch is supposed to make receiving benefits easier, but some people, especially those with disabilities, are worried they might lose money. Let’s break down what Universal Credit is, how it works, and what people need to know.
What Is Universal Credit?
Universal Credit is a new system that will replace several existing benefits. These include Housing Benefit, Income Support, Child Tax Credit, Employment and Support Allowance (ESA), Working Tax Credit, and Jobseeker’s Allowance (JSA).
The idea is to have one digital payment system instead of many separate ones. Universal Credit is handled by Her Majesty’s Revenue and Customs and the Department for Work and Pensions (DWP).
The government has planned to move all ESA claims to Universal Credit by September 2024. This is happening earlier than expected, as the original plan was to finish by 2028/29.
How Does This Affect People?
One big concern with Universal Credit is its financial impact on people who receive benefits, especially those with disabilities. It is estimated that disabled people could lose about £2,800 per year because of this change.
Millions of people who rely on these benefits will need to switch to Universal Credit if they want to keep receiving payments.
The DWP will send out letters to everyone on ESA by December 2025, explaining how they need to move over to Universal Credit.
Why Is Universal Credit Important?
The DWP is already sending notices to around 500,000 people on older benefits, telling them they need to move to Universal Credit. New claims for old benefits are no longer being accepted. This means people have to apply for Universal Credit through the following ways:
- Migration Notices: If you get a notice, you must apply by the deadline.
- Changed Circumstances: If your situation changes, you should consider applying for Universal Credit.
- Voluntary Claims: Some people might choose to switch because they think Universal Credit will provide better support for them.
How to Move to Universal Credit?
Once you receive a notice, you will have about three months to apply for Universal Credit online. You will need to have the following details ready:
- Your email address
- Housing information
- Payslips
- Any childcare costs
- Your bank account details
- Your savings information
To switch to Universal Credit, you will need to set up an online account on the UK Government portal and submit your claim. Once you apply for Universal Credit, your old benefits will stop right away.
Universal Credit Payment Rates in 2024
In 2024/25, Universal Credit payments are expected to go up by 6.7% due to inflation. There will be basic payments for adults over 25, with extra support for children and people with disabilities. Payments usually come once a month, but some people might get paid every two weeks.
The move to Universal Credit is one of the biggest changes to the UK benefits system. While the goal is to make things simpler for millions of people, it also brings financial worries, especially for people with disabilities.
It’s important to stay up-to-date on these changes and respond quickly if you receive a migration notice. This will help ensure you keep getting the support you need during this transition.
1. What is Universal Credit?
Universal Credit is a new system that replaces six older benefits into one payment, making it easier to manage.
2. How will the Universal Credit migration affect disabled people?
Disabled people might lose about £2,800 annually due to this change, which has raised concerns.
3. When will the migration to Universal Credit happen?
The migration of Employment and Support Allowance (ESA) will start in September 2024, with notices sent out by December 2025.
4. How do I apply for Universal Credit?
You need to set up an online account on the UK Government portal, provide details like your bank information, housing details, and payslips, and submit your claim.
5. Will my old benefits stop when I move to Universal Credit?
Yes, once you apply for Universal Credit, your old benefits will stop right away.
