Published On: Tue, Oct 22nd, 2019

What does Universal Credit replace? How UK roll out affects existing benefit claimants | Personal Finance | Finance


Universal Credit is a payment which may be made in order to help with living costs. It may be that a person who is on a low income or is out of work can claim the payment. It is replacing six existing benefits, known as legacy benefits. These are Housing Benefit, income-related Employment and Support Allowance (ESA), income-based Jobseeker’s Allowance (JSA), Child Tax Credit, Working Tax Credit, and Income Support.

It’s not possible to claim Universal Credit at the same time as receiving any of the aforementioned benefits.

The process of introducing Universal Credit across the UK is happening in stages.

The Gov.uk website states that a person does not need to do anything until they hear from the Department for Work and Pensions (DWP) about moving to Universal Credit, unless one has a change in circumstances.

The movement of existing benefits claimants onto Universal Credit is referred to as “managed migration” and a pilot scheme for this is underway.

In July this year, the DWP confirmed the trial had begun in Harrogate, North Yorkshire, and would affect up to 10,000 legacy benefits claimants who have not had a change of circumstance.

The scheme will last for at least one year.

The DWP said they would initially select claimants for the pilot from those currently attending the Jobcentre for meetings with their work coach.

Once ready, claimants are given a migration notice, giving them at least three months to submit a claim for Universal Credit.

Those who don’t have higher entitlements when receiving Universal Credit will be eligible for transitional protection, if their circumstances don’t change.

Who is eligible for Universal Credit?

There are some rules on eligibility, and this includes living in the UK, and being on a low income or out of work.



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