Universal Credit claimants told 'need to know' ahead of major DWP top up switch

Universal Credit claimants are being warned to read up on a host of changes coming. The Department for Work and Pensions (DWP) is currently transitioning thousands of benefit recipients to Universal Credit.

Universal Credit is set to replace six existing legacy benefits, including Tax Credits and Housing Benefit, with the aim to have most claimants transferred by the end of March 2025. Those receiving Employment and Support Allowance (ESA) without Tax Credits are expected to be moved onto Universal Credit by 2028.

However, not all claimants will find themselves better off with Universal Credit. According to the DWP, about 55% of individuals will receive more money, whereas 35% may find themselves with less, and the remainder should see no change.

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To compensate those who will lose out financially, the DWP has pledged transitional payments to makeup the difference.

This transitional protection will continue until the new Universal Credit payment equals what was previously received from the legacy benefits. It's important to note that these top-ups are only available through the "managed migration" process, which means you'll need to have been officially notified by letter about your transfer to Universal Credit, reports the Mirror.

Claimants who switch to Universal Credit before this notification will not qualify for transitional payments. If you're due to transition to Universal Credit, take note that the transitional payments will kick in automatically with your claim. However, bear in mind these payments could cease prematurely if there's a shift in your personal situation such as a partner moving in.

Before jumping ship to Universal Credit, it's vital to have a chat with organisations like Citizens Advice or other certified bodies for tailored advice. A backtrack to old benefits isn't on the cards once you've switched, after all.

To get an initial estimate of whether you'd be financially better off, feel free to tap into one of these no-cost benefit calculators:

- Policy in Practice calculator.

- entitledto calculator.

- Turn2us calculator.

But don't put all your eggs in one basket with these calculators, even if they hint at a rosier picture always seek professional, free advice on benefits first before committing to the swap. The changeover to Universal Credit is handled progressively; youll be notified when its your turn through a "migration notice" by post.

From the date of the letter, a three-month window is given to make the transfer.

Universal Credit is set to take the place of the following benefits:

- Working Tax Credit.

- Child Tax Credit.

- Income-based Jobseeker's Allowance (JSA).

- Income Support.

- Income-related Employment and Support Allowance (ESA).

- Housing Benefit.