DWP issues urgent migration notice as thousands to switch from ESA to Universal Credit
Thousands of individuals receiving Employment Support Allowance (ESA) have been urged to act swiftly to avoid missing out as they transition to Universal Credit. The Department for Work and Pensions (DWP) has stated that recipients who are unable to work due to illness or disability must apply for Universal Credit or risk losing crucial benefit payments.
This alert comes amidst a broader shift to transfer people across the UK from legacy benefits to the Universal Credit system. ESA recipients, often those with disabilities and health conditions, frequently also receive Personal Independence Payments (PIP), a benefit for individuals with long-term health issues who face additional health-related costs.
Six legacy benefits are being phased out by the DWP, with Universal Credit replacing them as part of a significant simplification of the benefits system. The other benefits being replaced include Housing Benefit, income-based Jobseeker's Allowance (JSA), Child Tax Credits (CTC), Working Tax Credits (WTC), and Income Support, under a major revamp of the benefits system.
Migration notices were dispatched by the DWP in September, informing ESA recipients of a three-month window in which they need to secure their application for Universal Credit. The Government has issued guidance to those on legacy benefits, stating: "Move to Universal Credit if you get a migration notice letter. As one or more of your benefits will be ending soon, you need to move to Universal Credit.
"To continue receiving financial support you must claim Universal Credit by the deadline date given in your letter. This is three months from the date the letter was sent out."
With Christmas just around the corner, individuals receiving ESA are urged to switch to Universal Credit without delay to prevent any interruptions to their financial support during the festive season. If you've received a letter instructing you to apply for Universal Credit, Citizens Advice clarifies that a 'migration notice' will include a deadline, typically set for at least three months after the notice's issue date.
Should your letter lack a specific deadline, there's no immediate requirement to claim Universal Credit, unless desired even if it indicates a future necessity to do so. Once you transition to Universal Credit, reverting to previous benefits isn't an option. It's recommended to assess whether Universal Credit will be more beneficial before making a claim.
Upon receiving a migration notice, it's crucial to submit your Universal Credit application by the letter's specified deadline. Failure to meet this deadline will result in the cessation of your current benefits. However, claiming Universal Credit before the deadline may qualify you for 'transitional protection', which could entail additional payments from the DWP to offset potential financial losses.
If you're set to receive less on Universal Credit than your previous benefits, an additional amount will be provided to bridge the gap. However, the Department for Work and Pensions (DWP) will gradually reduce this extra amount until you're receiving the standard Universal Credit amount.
Transitional protection could also mean you're eligible for Universal Credit when you typically wouldn't be. For instance, if you're a full-time student who usually wouldn't qualify for Universal Credit, you can generally receive it until your course concludes. Similarly, if you receive tax credits and have savings or investments exceeding £16,000, you can claim Universal Credit for up to a year. This is known as a 'transitional capital disregard'.
Moreover, if you've reached State Pension age and receive a migration notice, you're eligible to claim Universal Credit. For more information, visit here.