Thousands of DWP claimants must act before deadline or lose £569 a month

A jobcentre
-Credit: (Image: Reach Publishing Services Limited)


Thousands of benefit claimants who are out of work are being warned that they must act before a vital deadline or they could lose their benefits by Christmas. The Department for Work and Pensions is sending letters to 20,000 people on income-based Jobseeker's Allowance urging them to take action or face their payments of up to £569 a month being terminated.

Income-based JSA is among the six legacy benefits being phased out and replaced by Universal Credit. Jobseekers claiming the unemployment benefit must move across to Universal Credit within three months.

Migration Notice letters are this month being sent to JSA recipients along with thousands of other people on income-related Employment and Support Allowance who must also make the switch. Income-based JSA pays £71.70 per week to single claimants aged 18 to 24, £90.50 for single people aged 25 and above, and up to £142.25 a week for a couple on a joint claim. JSA is usually paid out every fortnight, with the highest amount therefore equivalent to £569 into accounts every month.

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Claimants who successfully apply for Universal Credit before the deadline will get an extra two weeks of income-based JSA payments. This is designed to help bridge the gap before their first Universal Credit payment goes into their account five weeks later.

If the amount someone gets on their existing JSA claim is more than they are entitled to receive on Universal Credit, a top-up is available called transitional protection. This matches your new payments to what you were on before the changeover, reducing over time as Universal Credit increases each financial year with the annual benefits uprating in April.

The DWP said: "Universal Credit is paid once a month, usually into your bank, building society or credit union account. If you’re not able to open a bank, building society or credit union account, call the Universal Credit Migration Notice helpline for advice about how to arrange a different way of getting paid.

"Your payment can include an amount for housing costs, which you'll usually need to pay to your landlord. If your landlord was being paid your housing costs directly, you'll need to discuss the change of payment arrangements with them.

"Your claim starts on the day you submit it in your account. However, it usually takes around five weeks to get your first payment. If you need help with your living costs while you wait for your first payment, you can apply for an advance within your Universal Credit online account. You'll need to pay back your advance in instalments from your future Universal Credit payments.

"You'll keep getting your current benefit paid for two more weeks. You will not need to pay back these extra payments and they will not affect the Universal Credit you might get. If you do not make a claim to Universal Credit by the deadline, your last day of entitlement to your existing benefits will be two weeks after the deadline."

The Universal Credit Migration Notice helpline number is 0800 169 0328 and is open Monday to Friday, from 8am to 6pm.

It's important to be aware that New Style JSA, which can be claimed if a person has enough National Insurance contributions, is not being phased out and is still available. But if claimed alongside Universal Credit, the full amount is deducted - meaning claimants will be no better off financially. Some people do claim both because they like receiving a fortnightly sum from their New Style JSA in addition to their monthly Universal Credit, as well as the higher class of National Insurance credits that are attached to a JSA claim.

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