DWP 'top up' payments for Universal Credit claimants ahead of big switch

23 June 2024 , 06:00

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The DWP is moving everyone on legacy benefits over to Universal Credit (Image: Getty Images)

Thousands of benefit claimants are in the process of being moved over to Universal Credit by the Department for Work and Pensions (DWP).

Universal Credit is replacing six older legacy benefits, including Tax Credits and Housing Benefit, with most people scheduled to be moved over by the end of March 2025. People who get Employment and Support Allowance (ESA) and don't get Tax Credits will be moved to Universal Credit by 2028.

But not everyone will be better off on Universal Credit. The DWP claims 55% of people will get more money on Universal Credit, while 35% will be worse off and the rest will see no change. If you are going to be worse off, the DWP will award you transitional payments to cover any financial shortfall.

This transitional protection lasts until there is no difference between the amount awarded under Universal Credit and what you received before under legacy benefits. But you'll only receive these top-ups if you're moved over as part of the so-called "managed migration" process - so if you've received a letter telling you you're being transferred to Universal Credit. If you move to Universal Credit early, you won't be entitled to transitional payments.

The transitional payments will be applied automatically to your benefit claim, but they can be stopped early if you have a change of circumstances - for example, if a partner moves into your home. It is important to seek expert advice first from Citizens Advice or another registered organisation before switching to Universal Credit, as once you make the move, you can’t go back to your old benefits. You can use one of the following free benefit calculators to get a rough idea as to whether you'll be better off:

Date millions on Universal Credit and benefits will get a pay rise this year

• Policy in Practice calculator

• entitledto calculator

• Turn2us calculator

But again, don't rely solely on these calculators, even if they say you're going to be better off - seek free benefits advice first before you make the switch. Everyone who is being moved over is being contacted in stages - when it is your turn to be transferred to Universal Credit, you’ll be sent your "migration notice" in the post. Once you have received this letter, you’ll have three months to move over to Universal Credit. Universal Credit is replacing the following benefits:

• Working Tax Credit

• Child Tax Credit

• Income-based Jobseeker’s Allowance (JSA)

• Income Support

• Income-related Employment and Support Allowance (ESA)

• Housing Benefit

  I'm a benefits expert - five tips to help if you're on Universal Credit

Levi Winchester