Universal Credit changes come into effect this month affecting thousands of people | Personal Finance | Finance
Thousands of Britons on tax credits will need to move across to Universal Credit from April, as more people on legacy benefits will move over to the new system. Claimants will receive a letter outlining what action they need to take.
Universal Credit already supports millions of Britons on low incomes and the new benefit is gradually replacing older benefits, known as legacy benefits, including tax credits.
From this month, the Government will be sending out more Migration Notice letters, to inform people they need to move over to Universal Credit.
If a person fails to act after receiving a letter, they risk losing their current benefit entitlements. Benefits advice group Turn2us states that once a person has migrated to Universal Credit, they “won’t be able to move back” to their previous benefits.
The gradual transition was paused during the COVID-19 pandemic as there was an increased volume of people applying for Universal Credit.
READ MORE: Britons could save up to £400 a year on water bills as average bill rises to £448
Most claimants will see their payments increase when they move from legacy benefits to Universal Credit.
In the majority of cases, if a person’s entitlement will be less as a result of the switch, they will get a top-up payment, known as a Transitional Protection, keeping it at the same level as before.
A person will naturally switch to Universal Credit if they report a change in circumstances, such as changing address or taking on a new job.
Minister for Employment, Guy Opperman, said: “Universal Credit has proven itself as a benefits system fit for the modern age, having dealt with the unprecedented demand of 3.7 million claims during the pandemic.
Other benefit payments increasing 10.1 percent include PIP, Attendance Allowance and Pension Credit.
The state pension has also increased 10.1 percent, with the full basic state pension now paying £156.20 a week while the full new state pension is £203.85 a week.
The payment boosts will be welcomed by many Britons on low incomes as several household bills are increasing this month.
This includes energy bills, as the instalments from the £400 energy bills discount came to an end last month, as well as water bills and council tax.
