A MAJOR Department for Work and Pensions payment volition beryllium scrapped 2 years sooner than expected.
The authorities has confirmed that it is speeding up the process of axing income-related employment and enactment allowance (ESA).
Households presently receiving income-related ESA are being encouraged to modulation to Universal Credit.
ESA provides fiscal enactment for those incapable to enactment owed to unwellness or disability.
Initially, each ESA claimants were expected to beryllium transferred to Universal Credit by the extremity of 2028.
Universal Credit was acceptable up to regenerate bequest benefits, including income-related ESA.
However, successful her Autumn Statement, Rachel Reeves confirmed that each income-related ESA claims volition present extremity by April 2026.
The Budget documents added: "This determination will bring much radical into a modern payment regime, continuing to guarantee they are supported to look for and determination into work.
"Around fractional of ESA claimants volition person much fiscal enactment connected UC, portion others volition person transitional extortion to guarantee cipher is worse disconnected astatine the constituent astatine which they determination implicit to UC."
This means that from 2026, households volition nary longer beryllium capable to renew their income-related ESA claims.
These households indispensable power to Universal Credit, oregon their payments volition stop.
The propulsion to determination each 2 cardinal claimants connected bequest benefits to Universal Credit by the extremity of March 2025 is taking spot done a process known arsenic managed migration.
Three cardinal benefits that YOU could beryllium missing retired on, and 1 adjacent gives you a escaped TV Licence
As portion of this process, households connected bequest benefits receive "migration notices" by post.
These notices supply instructions connected however to power to Universal Credit, arsenic the transition is not automatic.
Households indispensable use for Universal Credit wrong 3 months of receiving their managed migration letter.
Failing to bash this tin effect in benefits being stopped.
Hundreds of thousands of households connected taxation credits, income support, lodging payment and income-based jobseeker's allowance (JSA) volition person to power earlier April 2025.
Which benefits are stopping?
UNIVERSAL Credit is replacing six benefits nether the aged payment system, commonly called bequest benefits. They are:
- Working taxation credit
- Child taxation credit
- Income-based jobseeker's allowance
- Income support
- Income-related employment and enactment allowance
- Housing benefit
If you're connected immoderate of these benefits now, you tin determination implicit instantly oregon hold until you person your migration notice.
You should cautiously see the fiscal implications of transitioning to Universal Credit earlier receiving a ceremonial notice, arsenic erstwhile you marque the switch, determination is nary enactment to revert to your erstwhile benefits.
An online benefits calculator, escaped and casual to usage from charities specified arsenic Turn2Us and EntitledTo, tin assistance you check.
You whitethorn besides beryllium moved to Universal Credit if your circumstances change, specified arsenic moving home, changing your moving hours, oregon having a baby.
Ultimately, everyone volition beryllium transitioned to Universal Credit done the managed migration process, and each bequest benefits volition beryllium phased retired by 2025.
MANAGED MIGRATION PROGRESS
In January, the authorities announced the fig of migration notices it plans to nonstop retired successful the coming fiscal year.
Before this date, the absorption was sending migration notices to households claiming taxation credits only.
However, 110,000 income enactment claimants and a further 120,000 claiming taxation credits with lodging payment started receiving their letters successful April.
Over 100,000 lodging benefit-only claimants were contacted successful June.
More than 90,000 radical claiming employment and enactment allowance (ESA) on with child taxation credits were asked to power successful July.
In August, those claiming taxation credits who are implicit authorities pension age were asked to use for either Universal Credit or pension credit.
Since September, 20,000 claimants connected jobseekers allowance (JSA) person been asked to switch.
Around 800,000 households person besides started receiving letters explaining however to determination from income-related ESA to Universal Credit.
A WORD OF WARNING
Since July 2022, the Department for Work and Pensions (DWP) has sent astir 1.14million migration notices.
However, according to the latest figures from the DWP, 284,660 individuals mislaid their benefits aft failing to respond to migration notices received betwixt July 2022 and June 2024.
That's wherefore it's captious to guarantee that you power to Universal Credit wrong 3 months of receiving your letter.
Failure to bash this volition halt your existent payment payment.
You volition besides forfeit transitional extortion top-up payments designed to guarantee you bash not lose money when transitioning to Universal Credit nether the managed migration process.
Some 623,310 individuals person since made palmy claims for Universal Credit, and different 232,830 are inactive successful the process of transitioning.
HELP CLAIMING UNIVERSAL CREDIT
As good arsenic payment calculators, anyone moving from tax credits to Universal Credit tin find assistance successful a fig of ways.
You tin sojourn your section Jobcentre by searching at find-your-nearest-jobcentre.dwp.gov.uk/.
There's besides a escaped work called Help to Claim from Citizen's Advice:
- England: 0800 144 8 444
- Scotland: 0800 023 2581
- Wales: 08000 241 220
You tin besides get assistance online from advisers at citizensadvice.org.uk/about-us/contact-us/contact-us/help-to-claim/.
Will I beryllium amended disconnected connected Universal Credit?
ANALYSIS by James Flanders, The Sun's Chief Consumer Reporter:
Around 1.4million radical connected bequest benefits volition beryllium amended disconnected aft switching to Universal Credit, according to the government.
A further 300,000 would spot nary alteration successful payments, portion astir 900,000 would beryllium worse disconnected nether Universal Credit.
Of these, astir 600,000 tin get top-up payments (transitional protection) if they determination nether the managed migration process, truthful they don't suffer retired connected currency immediately.
The bulk of those - astir 400,000 - are claiming employment enactment allowance (ESA).
Around 100,000 are connected taxation credits, portion less than 50,000 each connected different bequest benefits are expected to beryllium affected.
Those who determination voluntarily and are worse disconnected won't get these top-up payments and could suffer cash.
Those who miss the managed migration deadline and aboriginal marque a assertion whitethorn not get transitional protection.
The timepiece starts ticking connected the three-month countdown from the day of the archetypal letter, and reminders are sent via station and substance message.
There is simply a one-month grace play aft this, during which immoderate assertion to Universal Credit is backdated, and transitional extortion tin inactive beryllium awarded.
Examples of those who whitethorn beryllium entitled to little connected Universal Credit include:
- Households getting ESA and the terrible disablement premium and enhanced disablement premium
- Households with the little disabled kid summation connected bequest benefits
- Self-employed households who are taxable to the Minimum Income Floor aft the 12-month grace play has ended
- In-work households that worked a circumstantial fig of hours (e.g. lone genitor moving 16 hours claiming moving taxation credits
- Households receiving taxation credits with savings of much than £6,000 (and up to £16,000)
Either way, if these households don't power successful the future, they hazard missing retired connected immoderate aboriginal payment summation and seeing payments frozen.