HUNDREDS of thousands of households are being moved to Universal Credit as part of a legacy benefits shake-up.
This process has been accelerated as the Government is aiming to move all claimants across by 2025.
Letters started going out in March, giving people instructions on how to switch and the deadline they needed to take action by.
Failure to apply to Universal Credit within that deadline means that your benefit payments will stop abruptly, and you could miss out on transitional protections such as changes to eligibility criteria and payment top-ups.
However, the DWP has also confirmed that some people will not be moving to Universal Credit.
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Instead, they will either continue to get legacy benefits, or they will move to Pension Credit.
Here’s the full list of claimants who won't be switched over to Universal Credit.
People over state pension age who only receive housing benefit
You will not move to Universal Credit if you only receive Housing Benefit and you, or you and your partner:
- are of state pension age (66 years old or over)
- live in temporary accommodation provided by a council because you were homeless
- live in supported accommodation including refuges, hostels, extra care housing and some sheltered housing
Instead, you will continue to get Housing Benefit.
People who only receive “new style” benefits
If you currently only get New Style Employment and Support Allowance (ESA (C) or New Style Jobseeker’s Allowance (JSA (C), then you will not be asked to move to Universal Credit.
Instead, you’ll continue to receive the benefits you’re already getting.
People of state pension age who receive tax credits
If you’re of state pension age and you currently get tax credits, you might be asked to move to either Universal Credit, or Pension Credit, depending on your individual circumstances.
This is also true if you’re part of a mixed-age couple where one of you is above the SPA.
DWP will write to you and tell you which benefit you need to apply for, and by when.
It says that if you are asked to claim Pension Credit, or are already in receipt of Pension Credit, you will receive a letter called a Tax Credit Closure Notice.
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If you’re asked to claim Universal Credit, you can choose to claim Pension Credit instead, as long as you meet the eligibility criteria.
But, if you do this, you won’t get any transitional protections and you won’t be able to switch back to Universal Credit later.
When you move to Universal Credit you may be notified of overpaid tax credits with a letter from HM Revenue and Customs (HMRC).
Mixed Aged Couples on tax credits and housing benefit
The DWP has warned that mixed-age couples that get tax credits and housing benefits must apply by the deadline in their letter or they will lose both claims immediately.
If you do not make a claim for Universal Credit when invited to, you should be able to reclaim Housing Benefit, so long as there have been no changes to your circumstances.
You must reclaim within three months of your Housing Benefit claim ending or you will no longer be entitled.
The DWP says you ought to seek advice from your Local Authority about backdating your claim.
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