Universal Credit Managed Migration

From 22nd January 2024, Tax Credits claimants in Flintshire will be asked to apply for Universal Credit (UC) as part of the HMRC/DWP’s Universal Credit ‘Managed Migration’ plans. They must claim Universal Credit to continue receiving financial support.

If you receive a migration notice letter, get advice and take action before your deadline date!

‘Tax Credits-only’ claimants will receive ‘Managed Migration Notices’ letters from 22^nd January 2024.

Tax Credit claimants who also receive ‘legacy’ benefits will start to receive managed migration notice letters from April 2024. Legacy benefits are Housing Benefit, Income-Related Employment and Support Allowance (ESA), Income-Based Job Seeker’s Allowance (JSA) and Income Support.

The migration process does not happen automatically. The Managed Migration Notice letter gives claimants a 3 month time limit to make a Universal Credit Claim.  If a claimant receives a Managed Migration Notice and does not make a Universal Credit claim before the deadline date printed on their letter, their existing Tax Credits and legacy benefit claims will end – even if they have not made a claim for Universal Credit.

The deadline can be extended in some circumstances, providing the claimant has ‘good reasons’ for needing to delay their Universal Credit claim. An extension can be requested by contacting the Universal Credit Managed Migration helpline on 0800 169 0328 before their deadline date. Claimants who miss their migration deadline should seek advice straight away.

Claimants should generally WAIT until they receive their official HMRC/DWP ‘Managed Migration Notice’ letter before they claim Universal Credit (with one exception below) or they may miss out on extra money.

Claimants should not be financially worse off by migrating to Universal Credit. Anyone who would have been worse off on Universal Credit – providing their claim is made during their managed migration period (e.g. before their deadline) – will receive an extra ‘transitional element’ in their Universal Credit to make up the financial difference. Anyone who is financially worse off after they claim Universal Credit should seek advice straight away.

The exception to waiting for a Managed Migration Notice applies to claimants who will be definitely better off on Universal Credit and wish to ‘voluntarily migrate’– or claim straight away to receive higher financial support sooner.

But we advise caution, and strongly recommend seeking advice before starting a Universal Credit claim. Anyone who makes a Universal Credit claim before receiving a Managed Migration Notice will lose any ‘transitional protections’ and entitlement to the ‘transitional element – and they won’t be able to return to their old benefits either. If in any doubt, seek advice.

There may be some instances where claimants need to seek advice about when to ‘time’ their Universal Credit claim within their 3-month deadline period. This may be because of a change of circumstances in the household or to help them budget until they receive their first Universal Credit payment.

When eligible Tax Credit claimants have successfully applied for Universal Credit during a tax year, claimants will still need to finalise their Tax Credits claim – in the same way they normally did at the end of the tax year.

Tax Credits claimants who have over £16,000 in capital (such as savings, bonds/ISAs or property ownership – other than the house they live in) can still apply for Universal Credit and this capital will be disregarded for 12 months.

Under normal circumstances, some full-time students are not eligible for Universal Credit. There is some protection for current full-time students receiving Tax Credits under managed migration – which means they will be entitled to Universal Credit for the duration of their existing course.

If claimants are self-employed, their responsibilities under Universal Credit will change (compared to Tax Credits). However, they will not be subject to Universal Credit ‘minimum income floor’ earnings rules for the first 12 months of their Universal Credit claim.

Getting Advice on Managed Migration

In preparation, it’s important that claimants receive all of their current legacy benefit entitlement before they are asked to migrate to Universal Credit. We are encouraging all claimants to contact the ‘Claim What’s Yours’ helpline for a current benefit check – 0808 250 5700

If claimants need help to apply for Universal Credit when they are asked to do so – or need advice about the initial managed migration process – they should contact the ‘Help to Claim’ helpline: 08000 241 220