Universal Credit migration
Moving to Universal Credit from existing means-tested or 'legacy' benefits.
Natural and voluntary migration
Managed migration
What if the 'deadline date' is missed?
Who is likely to be worse off on UC and should wait until managed migration?
Groups most likely to be worse off on UC
Mixed-age couples
Capital over £16,000 and between £6,000 to £16,000
In receipt of the disability premium in Income Support or JSA
In receipt of the severe disability premium in ESA, IS or JSA
Working Tax Credit claimants in receipt of the Disabled Worker Element
Claimants receiving the lower disabled child element in Child Tax Credit
Claimants who are both a carer and have limited capability for work / work related activity or a disability premium
Claimants not in receipt of their full benefit entitlement
Claimants whose Housing Benefit entitlement is lost in full due to the benefit cap
Other issues to be taken into account before a voluntary move to UC
Work-related requirements
Historic overpayments
Advance payments
Claims are usually made online and managed via an online journal
Alternative payment arrangements (APA)
Government policy and regulations set out plans for all 'working age' 'legacy benefit' claimants, for example those claiming Income Support, income-related Employment and Support Allowance, income based Jobseeker's Allowance, Child Tax Credit, Working Tax Credit and working age Housing Benefit to claim Universal Credit instead.
The term used is 'migration' onto UC, however claimants will not be moved on to UC but must make a claim for it.
Natural and voluntary migration
Where circumstances change bringing old entitlement to an end and the claimant claims UC this is 'natural migration' onto UC.
Where a claimant on an existing benefit chooses to claim UC this is 'voluntary migration' to UC. The claim for UC itself brings the entitlement to all existing 'legacy' benefits to an end.
Managed migration
This is the formal government process of ending entitlement to 'legacy benefits' and inviting claimants to claim UC instead. Claimants do not have to take up this invitation, but their legacy benefits will end regardless and new claims to those benefits will not be possible. The term 'invitation' is therefore a bit misleading.
This process has already started across different parts of the UK and started in Swansea in September 2023.
The DWP has said that the 'migration notice', will include a dedicated helpline number for claimants to ring if they require support to make their claim. Claimants who are sent a managed migration notice will be told of a 'deadline date' at least 3 months from the date of the letter sent to them (migration notice) and they will have to make a UC claim by this date to avoid a gap in their entitlement to means tested support and to qualify for 'transitional protection' to an amount of UC equivalent to their current entitlement.
What if the 'deadline date' is missed?
If this deadline is missed it will still be possible to make a claim within one calendar month of the deadline date and get full UC backdating to the deadline date with full transitional protection. This 'final deadline' is unlikely to be widely advertised as the intention is to encourage claimants to claim before the deadline. Legacy benefits will end on the deadline date and therefore it is always in a claimant's best interests to claim UC before that date.
The government have also been encouraging people to make a 'voluntary' move to UC (see above), stating that they believe many households could be better off if they moved to UC straightaway.
They set out their explanation for this policy in this document: Completing the move to Universal Credit (GOV.UK) (opens new window)
In August 2023 this was updated with findings from the ongoing process.
As part of the DWP's campaign to encourage people to make a voluntary move to UC, information on claiming UC is included with this year's tax credit renewal forms: Tax credits are ending (Universal Credit) (opens new window)
It is important to note that this leaflet is NOT a migration notice.
The DWP are also using social media channels as part of their campaign to 'suggest' people move to UC voluntarily.
Claimants need to get independent advice before making a decision to voluntarily move to Universal Credit. Online benefit calculators can be misleading. It is important to consider the following issues if you are considering a voluntary move to UC.
Who is likely to be worse off on UC and should wait until managed migration?
Anyone who will be worse off on UC and does not have a change of circumstances that means they need to claim UC should wait until the formal 'managed migration' described above. Always check, a change of circumstances does not necessarily mean legacy benefits end and so will not always require a UC claim.
Managed migration includes transitional protection, which means that most claimants will not be worse off at the point of claiming UC. Transitional protection means an amount is included in the UC calculation to ensure the amount received is not less than you received on legacy benefits. In a minority of cases which are quite specific this will unfortunately not be the case.
This protection will be reduced if your 'maximum amount' for UC, the threshold against which your other income is measured, increases. This threshold (the UC 'maximum amount') changes according to the age and circumstances of people in the claimant's 'benefit family' and to take account of things like housing costs and childcare costs. If the threshold increases due to rising childcare costs this will NOT reduce the transitional protection, however all other increases reduce it pound for pound. This includes when your UC 'maximum amount' increases in April as part of the annual uprating of benefits and if your UC housing costs element increases due to rent rises.
Government guidance on claiming UC is available online: Universal Credit and you (GOV.UK) (opens new window), however the best advice is to get impartial independent advice as every individual case is different.
Anyone who is thinking of voluntarily moving to UC should get a benefit check and independent advice first:
- Find advice and support on benefits (there is a link to government information on claiming benefits which gives useful general information, followed by a list of independent organisations who may be able to advise you).
Groups most likely to be worse off on UC
Not all people included in the circumstances below will be worse off on UC. A lot of this advice is complicated and this is why we urge you to get a comprehensive benefit check and advice before a move is made - you cannot return to legacy benefits after claiming UC.
Mixed-age couples
There is no increase for pensioners in UC, couples where one member of the couple is under pension age usually have to claim UC if entitlement to legacy benefits stops. Some mixed age couples where the younger member is the claimant are much better off than they would be on UC and may be in a situation where they can stay on their existing benefit until they can claim Pension Credit. They should avoid a voluntary move to UC without proper advice first.
Unfortunately, many mixed age couples may 'naturally migrate' to UC. The rules around mixed age couples are complicated and advice should always be sought.
Capital over £16,000 and between £6,000 to £16,000
Claimants on tax credits are not subject to a capital limit and only the actual taxable income, above a certain amount, from capital is take into account. Claimants in receipt of tax credits with capital (savings, investments, property not lived in) of £16,000 or more are not entitled to UC. They should not make a voluntary claim for UC as UC will be refused. The claim will end their tax credit entitlement and no new claim will be possible.
However, under 'managed migration', capital over £16,000 will be disregarded for tax credit claimants only and the rule about not having capital of £16,000 or more for UC will not apply. This will be the case for 12 months giving an initial entitlement to UC for these claimants.
Tax Credit claimants who have capital between £6,000 and £16,000 will have 'tariff income), an assumed amount of income from capital, deducted in the UC calculation. Tariff income rules for UC reduce the amount of UC entitlement at a much higher rate than actual taxable income from interest on savings reduces the amount of tax credits. While 'transitional protection' may provide some buffer for this group any 'transitional element' included is subject to being reduced in the way described above and the overall protection allowing claimants to have £16,000 and above is restricted to 12 months. This is a complex area.
In receipt of the disability premium in Income Support or JSA
There are no disability premiums in UC. If you are receiving the work related activity or support component in ESA this can be carried over as the limited capability for work or limited capability for work related activity element in UC on a voluntary move to UC (this does not always happen correctly, seek advice if the element is not paid).
Claimants getting any of the disability premiums based on receipt of a disability benefit who have not already also been assessed under the Work Capability Assessment will have to submit fit notes and pass the WCA in order to receive extra UC due to sickness and / or health problems. However many claimants who have the severe disability premium and the enhanced disability premium included in the calculation of their legacy benefits will not be fully protected on a voluntary claim for UC.
In receipt of the severe disability premium in ESA, IS or JSA
People who receive the severe disability premium in legacy benefits can be paid the Transitional SDP Element if they are entitled at the point of voluntary migration to UC, this extra element of UC does not increase when benefits are uprated in April and in many cases is not equivalent to the amounts paid in legacy benefits.
The Transitional SDP Element included for those who make a voluntary move to UC is decreased in the same way as the transitional protection under managed migration.
Where possible claimants should wait for managed migration where they will at least get the equivalent amount of their legacy benefit initially. Even so the eventual erosion of transitional protection over time represents a real loss for this vulnerable group.
Working Tax Credit claimants in receipt of the Disabled Worker Element
There is no equivalent of this element in UC. The only way to receive extra UC for the extra costs of being a disabled worker is to be assessed as having limited capability for work and as a result being entitled to the work allowance and / or being found to have limited capability for work related activity to get the limited capability for work related activity element in UC.
If you are making a voluntary move to UC, you will only be able to be assessed as having limited capability for work / work related activity if you earn under £722.45 per month or are in receipt of a disability benefit or have already been found to have limited capability for work under the UC system (for example, by claiming new style ESA) or can be treated as having limited capability for work under UC.
Therefore, it is important for disabled workers on Working Tax Credit to get a benefit check and advice before considering a voluntary move to UC.
Claimants receiving the lower disabled child element in Child Tax Credit
The equivalent element in UC is paid at a lower rate compared to the rate paid in Child Tax Credit or other legacy benefits).
A benefit check is advised if you have a disabled child to check that you will not receive less on UC.
Claimants who are both a carer and have limited capability for work / work related activity or a disability premium
Under legacy benefits when the same person is both a carer and is disabled or has limited capability for work, you can be paid both the carer's premium and a disability premium or work-related activity / support component at the same time. In UC if the same person is a carer and has limited capability for work / work related activity only the highest element of the two is included.
Claimants not in receipt of their full benefit entitlement
Just entering current benefits into an online calculator will not show whether you would be better off on UC if you are not claiming all the benefits you are entitled to.
One of the case studies referred to in the DWP policy paper is that of a single claimant only receiving ESA in the support group as being better off on UC. This is correct, however before suggesting a move to UC, if this claimant had independent advice it may be suggested that they could be entitled to Personal Independent Payment and if awarded may be entitled to have the severe disability premium included in the calculation of their income related ESA. Whether this would apply to you will depend on how your health or disability affects you. Anyone thinking of making a voluntary move to UC in this situation should consider this first.
This advice to maximise legacy benefits to the amount they should be before a move to UC is also important to ensure maximum transitional protection at the point managed migration happens.
Claimants whose Housing Benefit entitlement is lost in full due to the benefit cap
Under legacy benefits the 'benefit cap' (the total amount of benefits a family can receive) only affects housing benefit. If your housing benefit entitlement is reduced to nil due to the benefit cap, you may be worse off on UC where the whole award, not just your housing costs, can be reduced to the benefit cap level.
If you have been affected by the benefit cap, please seek advice to check if you could be exempt or could apply for a discretionary housing payment.
Other issues to be taken into account before a voluntary move to UC
There are other considerations apart from the maximum UC you may be entitled to that you should be aware of in order to make a fully informed choice whether to voluntarily move to UC.
Work-related requirements
To claim UC, both members of a couple need to sign a 'claimant commitment' which sets out your responsibilities and which 'work related requirements' will apply. Unlike legacy benefits, when the partner of a claimant sometimes has no or very limited requirements, for UC both members of a couple are 'claimants' and have individual 'work-related requirements' according to their circumstances.
Citizens Advice have a guide to help check whether you are in the right UC work related activity group: Check you’re in the right Universal Credit work-related activity group (Citizens Advice) (opens new window)
Historic overpayments
This is an issue that can emerge when making a new claim for UC, an old overpayment that you may know nothing about can be recovered from UC. This is particularly an issue if you are no longer receiving tax credits but have done previously. You may be completely unaware of a past tax credit overpayment.
Advance payments
Whilst it is possible to request an 'advance payment' of UC when you make a claim and this payment can make the transition to monthly payments of UC easier, an advance payment is recovered from ongoing UC payments meaning less to live on every month.
If you are considering a voluntary move to UC, it is worth knowing that where entitlement to Housing Benefit, Income Support, Income-based JSA or income-related ESA is still in payment when UC is claimed entitlement will technically end on the date UC is claimed but a two week non repayable 'run on' of these benefits should be paid automatically and will not be deducted from UC. This could bridge the gap enough to avoid or require a lower advance payment. There is no run on of tax credits when making a UC claim. These 'run on' rules also apply to 'managed migration' and mean planning the best time to make the UC claim is important.
Claims are usually made online and managed via an online journal
Whilst this makes it easier or is preferable for some claimants, some people would struggle with an online claim. Telephone claims can be made in exceptional circumstances and evidence from managed migration trial shows that a much higher percentage than is normally expected by the DWP made and were helped and supported to make, phone claims. Most claims will be online, however it is important to get advice if a phone claim, which means the claim is managed over the phone and in writing is necessary or best.
Our Lifelong Learning Team can help people get online and have courses on IT skills and digital literacy: Adult education - Lifelong Learning.
All our libraries have free computer and wifi access: Libraries
Citizens Advice can help people make a claim for UC.
Alternative payment arrangements (APA)
It is important to remember that people claiming UC can request alternative payment arrangements (APA) if this will help you manage your money better and you are at risk of financial harm through receiving one monthly payment including housing costs.
An APA can be requested to:
- pay housing costs of Universal Credit as a Management Payment (MP) direct to the landlord.
- to be paid more frequently than monthly payments.
- split payment of an award between partners.
The guidance on APAs is available here: Alternative Payment Arrangements (GOV.UK) (opens new window)
Some people will be better off claiming UC and with the current increases in the cost of living we do not want to put you off if it will increase your income, just to make sure that you are fully informed.
Share this page
