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Universal Credit to be expanded to include more Tax Credit claimants

28 Mar 2023 2 minute read
From April people claiming Tax Credits may be asked to move to the newer Universal Credit system

From April, more benefit claimants on Tax Credits will be asked to move to Universal Credit as the UK Government expands the modern benefit system.

The UK Government have said that by migrating to Universal Credit, with the support of the Department for Work and Pensions, claimants will continue to receive the benefit they are entitled to through a “future-proofed modern benefits system.”

Any claimants affected will receive letters notifying them of action to take.

Universal Credit provides a vital safety net for millions of people every year, enabling them access their benefits and amend their claim through a digital system.

In most cases, individuals will be better off following a move from legacy benefits to Universal Credit.

However, where an individual’s entitlement to Universal Credit would be lower than their legacy benefits entitlement, in the vast majority of cases, they will be entitled to a top-up payment known as Transitional Protection.

Legacy benefit

This means that their Universal Credit entitlement will be the same as their legacy benefit entitlement at the point they move.

Minister for Employment, Guy Opperman MP 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.

“The movement of those on legacy benefits to Universal Credit will ensure we can continue to provide the best level of support to benefit recipients through an effective and streamlined system.

“This Government remains committed to supporting the most vulnerable in society. I want to encourage all those who receive their migration notices to take action to ensure that they continue to receive the benefits they are entitled to.”

The move of claimants on legacy benefits to Universal Credit was paused during the pandemic following record demand so that DWP could process increased application volumes.

Since its introduction some claimants have naturally moved to Universal Credit following a change in their circumstances and claimants have always been able to make a claim for Universal Credit if they wish to do so.

From April, there will be an increase in letters known as Migration Notices being issued and recipients who fail to act will risk losing their current benefit entitlements.

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