Managed migration opens to Tax Credits claimants with Housing Benefit

People claiming Tax Credits alongside Housing Benefit started receiving Migration Notices from April 2024, according to Law Centre NI's February 2024 guide to managed migration¹. A Migration Notice tells a claimant their legacy award is ending and invites a claim for Universal Credit, and it sets a Deadline Day by which that claim must be made¹.

Managed migration is the process by which the Department for Communities writes to claimants to notify them that their legacy benefit will end¹. Policy in Practice describes the equivalent process run by the Department for Work and Pensions, saying Universal Credit managed migration "will be rolled out in all areas by March 2025"². The notice may carry an HMRC logo or, for Northern Ireland residents, a Department for Communities logo, and will always include a deadline date².

The two sources give different dates for some groups. Law Centre NI, which covers Northern Ireland only, lists Tax Credits with Housing Benefit from April 2024, Income Support from May 2024, Housing Benefit only and Employment and Support Allowance (income-related) with Child Tax Credits from July 2024, and income-based Jobseekers Allowance from September 2024¹. Policy in Practice gives April 2024 for Income Support or households on both Tax Credits and Housing Benefit, June 2024 for Housing Benefit only, July 2024 for ESA with Child Tax Credit, and September 2024 for income-based JSA². It also reports that pension age households receiving Tax Credits will move to Universal Credit or Pension Credit from August 2024². Law Centre NI states that income-related ESA alone, and income-related ESA with Housing Benefit, are scheduled to move in 2028/29¹; Policy in Practice says those ESA with Housing Benefit households will move from 2025².

Claimants have at least three months from the date their Migration Notice was issued to claim Universal Credit, and the Deadline Day can be extended by contacting the Department for Communities or Universal Credit before that date, with no limit on the number of extensions¹. A Final Deadline Day falls one calendar month after the Deadline Day or extended Deadline Day, and a claim must be made before it to get Transitional Protection¹.

Transitional Protection is delivered through a Transitional Element, an extra amount in the Universal Credit calculation covering any loss on moving from a legacy benefit¹. It can be eroded by changes in circumstances, by a nil Universal Credit award for more than three consecutive monthly assessment periods due to earnings, or naturally as benefit rates rise¹. Policy in Practice says the element is not permanent and will reduce over time as circumstances change and Universal Credit awards are uprated².

On capital, Law Centre NI says any amount over £16,000 on Migration Day is disregarded for 12 assessment periods under Transitional Protection, while capital between £6,000 and £16,000 is still taken into account¹. Policy in Practice says savings above £16,000 are disregarded for 12 months for households in receipt of Tax Credits².

Why it matters for households

Households in these groups lose their legacy awards on Migration Day, the day before the Deadline Day or extended Deadline Day, if no claim is made¹. There is a two-week run-on payment for Income Support, income-based Jobseekers Allowance, income-related Employment and Support Allowance and Housing Benefit, but no run-on for Tax Credits, and there is approximately a five-week wait before Universal Credit is paid¹. Policy in Practice states that if no claim is made following a migration notice, households will no longer receive any benefit support².

For couples, each claimant receives their own Migration Notice and both must claim, after which the claims are linked as a joint claim using a linking code¹. Full-time students normally cannot claim Universal Credit unless they have completed a Work Capability Assessment and been found to have Limited Capability for Work, though a student who receives a Migration Notice can claim and finish the course they were on¹. Self-employed people migrating from Tax Credits get a 12-month grace period before the Minimum Income Floor applies, with Universal Credit calculated on actual earnings during that period¹.

Policy in Practice notes that households moving through natural migration do not receive the same protection as those moved through managed migration². It also reports that Housing Benefit will remain for pension age households and for households in supported or temporary accommodation².

What happens next

The remaining groups move on the timetable above, with income-related ESA cases scheduled for 2028/29 in Northern Ireland¹ and from 2025 according to Policy in Practice². Policy in Practice reports that the DWP aims to move everyone to Universal Credit by 2025, after which it will no longer operate legacy benefits². It adds that timescales for mixed age couples are not certain, with further information to be released by the DWP².

If a Migration Notice arrives, the migration notice guide sets out the steps, and moving to Universal Credit from legacy benefits covers the claim itself. Transitional protection explains how the element is calculated and eroded, and help with rent covers the housing element and Local Housing Allowance. Pension age households receiving Tax Credits can read about Pension Credit and Pension Credit versus Universal Credit for mixed age couples.