The UK government is changing the benefits system by moving from multiple benefits to a single system called Universal Credit (UC). This new system is designed to simplify how benefits are paid, but there are concerns, especially for disabled people who may lose money. Let’s look at what Universal Credit is, how it will affect people, and what beneficiaries should do.
What is Universal Credit?
Universal Credit is a new benefit system replacing several old benefits. It aims to make the payment process easier by using a digital system. The UK government departments, Her Majesty’s Revenue and Customs and the Department for Work and Pensions (DWP), are in charge of this change. By September 2024, the transition of Employment and Support Allowance (ESA) claims to Universal Credit will start.
Financial Impact on Beneficiaries
The shift to Universal Credit is expected to affect disabled people the most, with research showing they could lose around £2,800 a year. Millions of people who depend on benefits need to switch to Universal Credit to keep getting support. The DWP will inform ESA recipients about the transition by December 2025.
Why Shift to Universal Credit?
The DWP is sending notices to about 500,000 people on old benefits, telling them to switch to Universal Credit. New claims for old benefits are no longer accepted. People can switch to Universal Credit in three ways:
- Migration Notices: People must act by the deadline in the notice to claim Universal Credit.
- Changed Circumstances: If a person’s situation changes, claiming Universal Credit might be beneficial.
- Voluntary Claims: Some people might choose to claim Universal Credit voluntarily, thinking it offers better support.
Transition Process
To switch from old benefits to Universal Credit, people who get a migration notice must claim online before the deadline (usually three months from the notice). They need to provide:
- Email address
- Housing details
- Payslips
- Childcare costs
- Bank account details
- Investment and savings information
Setting up an online UC account and submitting a claim on the UK Government portal starts the transition. Old benefits like tax credits will stop immediately upon claiming Universal Credit, while benefits like JSA and ESA will stop after two weeks.
Universal Credit Rates for 2024
Universal Credit rates have increased by 6.7% from June 2024. Here are the basic rates for 2024/25 for adults over 25:
| Category | 2024/25 Rates |
|---|---|
| Single individual below 25 | £311.68 |
| Single individual above 25 | £393.45 |
| Couples under 25 | £489.23 |
| Couples over 25 | £617.60 |
Additional payments are available for those with dependent children and extra support for disabled children.
Key Points to Remember
By the end of 2024, the DWP aims to transition beneficiaries from these old benefits to Universal Credit:
- Housing Benefit
- Income Support
- Child Tax Credit
- Employment and Support Allowance (ESA)
- Working Tax Credit
- Job Seeker’s Allowance (JSA)
Universal Credit helps millions of families with their living expenses. Payments are usually made monthly, but some people can get payments twice a month.
The Universal Credit migration is a big change in the UK benefits system. It aims to make it easier and more efficient to support millions of people. However, the change may cause financial difficulties, especially for disabled people. Staying informed and responding quickly to migration notices is essential to ensure continued support.
1. What is Universal Credit?
Universal Credit is a new system that replaces several old benefits to simplify the payment process.
2. How will Universal Credit affect disabled people?
Disabled people might lose around £2,800 a year with the switch to Universal Credit.
3. How can I switch to Universal Credit?
You can switch by following the migration notice, if your circumstances change, or by claiming voluntarily.
4. What information do I need to provide to switch to Universal Credit?
You need to provide your email address, housing details, payslips, childcare costs, bank account details, and investment and savings information.
5. What are the new Universal Credit rates for 2024?
For a single individual over 25, it’s £393.45, and for couples over 25, it’s £617.60. Additional payments are available for those with dependent children and disabled children.
