27 August 2024
How to Transition from Legacy Benefits to Universal Credit
What You Need to Know About Moving to Universal Credit
The UK government is currently moving millions of people from legacy benefits like Employment and Support Allowance (ESA) and Jobseeker's Allowance (JSA) to Universal Credit. This significant change, known as "managed migration," affects those who rely on these benefits due to illness, disability, or unemployment.
Starting from September 2024, claimants will receive "migration notices" from the Department for Work and Pensions (DWP), instructing them to switch to Universal Credit within three months. Failure to do so could result in the loss of benefits.
The migration process began in November 2022, and by the end of 2025, around 800,000 households on ESA alone will be required to transition. While this migration aims to streamline the benefits system, it has raised concerns, especially for vulnerable groups. For instance, individuals with mental health issues or disabilities may struggle with the transition. Additionally, those who delay their application risk losing the transitional element, which helps cushion any immediate drop in income.
For Boom Community Bank members, this transition highlights the importance of financial planning and understanding the new benefits landscape. We encourage our members to be proactive, seek guidance, and use resources like Citizen's Advice to navigate this change effectively.
Staying informed and acting promptly can prevent income disruptions, ensuring financial stability during this period of change. If you or someone you know is affected by this transition, ensure to act within the given timeframe and consult with financial advisers to protect your benefits.
Helpful Resources:
For additional resources and tools to help you navigate this transition, visit our Money Focus page. You'll find free benefit calculators, financial tools, and more to support you during this period of change.
