Why people on working tax credit and housing benefit are moving to universal credit

The Department for Work and Pensions (DWP) is going through resistance from charities once they launched plans to transport tens of millions of advantages claimants onto common credit score.

The transfer, which has been deliberate since 2019, will see hundreds of other people taken from the previous legacy advantages device to common credit score.

The Government plans to do a take a look at run of the migration on 500 claimants ahead of rolling it out to wider teams of other people.

While the primary segment handiest comes to 500 other people, more than a few charities have launched an open letter pronouncing: “500 people as guinea pigs for whether a system can potentially cause financial destitution is unacceptable”.

Which advantages are being moved to common credit score?

The Government stated: “In 2019 the Department for Work and Pensions started to move claimants in receipt of one or more of the following benefits to universal credit:

  • Working tax credit
  • Child tax credit
  • income-based jobseeker’s allowance
  • income-related employment and support allowance
  • Income support
  • Housing benefit

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Why is the Government moving legacy payments to universal credit?

The DWP claims that the move will leave claimants better off and simplify the claim process.

An official explained: “Over five million people are already supported by universal credit.

“It is a dynamic system which adjusts as people’s earnings change, is more generous overall than the old benefits, and simplifies our safety net for those who cannot work.

“Roughly 1.4 million people on legacy benefits would be better off on universal credit, with top-up payments available for eligible claimants whose universal credit entitlement is less.”

However, charities have were given in combination to problem the Government at the proposed shift – declaring that the three-month cut-off date for claimants may just go away inclined other people with out source of revenue.

“The DWP’s managed migration plans could leave people with mental health problems with no income,” stated Paul Farmer, leader government of Mind.

“Those too unwell to engage with the DWP could be left unable to pay their rent, buy food, or pay their rising energy bills.”

Mr Farmer demanded the DWP halt the method “until they can guarantee they will not stop anyone’s old benefits until they have successfully made a claim to universal credit”.

In a joint letter to Ms Coffey, the charities stated: “We believe that your approach for moving people receiving older benefits on to universal credit risks pushing many of them into destitution.

“We ask you to consider the devastating consequences for someone who faces challenges in engaging with the process having their only income cut off, especially during this cost-of-living crisis.”

“No one subject to managed migration should have their existing benefit stopped until they have established a claim to universal credit. Instead of setting arbitrary deadlines, the DWP needs to take responsibility for ensuring people’s safety.”

Will I be on common credit score?

The Government says that folks might be on common credit score than on legacy advantages.

But whenever you transfer over, you’ll’t transfer again, so this can be a just right concept to get an concept first.

You can use Money Saving Expert‘s advantages calculator right here to determine what you may be entitled to.

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