People claiming Tax Credits with Housing Benefit began receiving invitations to move to Universal Credit from 13 May 2024, according to a guide published by Law Centre NI on 20 May 20241. The same guide sets out the groups due to follow: people claiming Income Support in June 2024, people claiming Housing Benefit only and people claiming Child Tax Credits with income-related Employment and Support Allowance in July 2024, and people claiming income-based Jobseeker's Allowance in September 20241. Claimants receiving multiple benefits migrate according to the planned rollout date of their lead benefit1.
Managed migration is the official process by which a legacy benefit claimant moves to Universal Credit after an invitation from the Department1. The guide states that it is the only type of migration that offers Transitional Protection, which "ensures that a claimant is no worse off at the point they migrate to Universal Credit"1. The process started in Northern Ireland in April 2023, when a managed migration trial began inviting people on legacy benefits to claim Universal Credit1.
A Migration Notice is an official letter telling a claimant their Tax Credit award will end and that they must claim Universal Credit1. Claimants have at least three months from the date the notice is issued to make their claim, and reminders are usually sent after three weeks, seven weeks and ten weeks1. The guide states that the legacy benefit, meaning the Tax Credit award, ends whether or not a claim for Universal Credit is made1. The Final Deadline Date is one calendar month after the deadline day, and a valid claim made within that month is treated as if made on the original deadline date, preserving eligibility for Transitional Protection1. Deadline extensions can be requested, extended by a maximum of four weeks per request, with no limit on the number of requests, and the guide advises requesting an extension at least one week before the deadline date on the letter1.
On capital, the guide says any claimant whose capital is over £16,000 will have the excess disregarded for twelve assessment periods, but if capital drops below £16,000 in any of those periods the protection no longer applies and normal Universal Credit capital rules apply1. A claimant migrating through managed migration has their award reduced by £4.35 for each £250 held between £6,000 and £16,0001. The guide also states that Tax Credits has no run-on period, so there is a full five-week wait before a first Universal Credit payment1, and that self-employed claimants have a 12-month grace start-up period before the minimum income floor applies1. As of 13 May 2024, the Administrative Earnings Threshold is £892 per assessment period for a single person1.
"From the second assessment period of a claimant's Universal Credit claim (month two onward), any change in circumstances that leads to an increase in their Universal Credit award will result in a reduction of their Transitional Element amount (on a £1 for £1 basis) until it is completely gone."
The guide adds that the addition of a Childcare Costs Element does not erode the Transitional Element, and that the element is eroded when benefit uprating occurs at the start of each financial year in April1.
Why it matters for households
Households in Northern Ireland receiving Tax Credits alongside Housing Benefit are the first group affected from 13 May 2024, with Income Support claimants, Housing Benefit only claimants, Child Tax Credits claimants with income-related ESA, and income-based Jobseeker's Allowance claimants following by September 20241. For these households the Tax Credit award ends on the migration deadline whether or not a Universal Credit claim is made, and because Tax Credits has no run-on period there is a full five-week wait before the first Universal Credit payment1. Transitional Protection is available only through managed migration, and it is calculated into the Universal Credit award1. The protection can reduce over time: from the second assessment period, any change of circumstances that increases the Universal Credit award cuts the Transitional Element pound for pound until it is gone, and uprating in April erodes it further1. Capital above £16,000 is disregarded for twelve assessment periods, but falls below that level end the protection1. Claimants with Housing Benefit migrating alongside Tax Credits can read how the Universal Credit housing element compares, and those with children can check claiming childcare costs through Universal Credit.
What happens next
The rollout continues through 2024: Income Support claimants in June 2024, Housing Benefit only and Child Tax Credits with income-related ESA claimants in July 2024, and income-based Jobseeker's Allowance claimants in September 20241. Anyone who receives a migration notice has at least three months from the date it is issued to claim, with reminders at three, seven and ten weeks1. The guide states that claimants who miss the deadline date have until the Final Deadline Date, one calendar month later, to make a valid claim and still receive Transitional Protection1.
Turn2usFree benefits calculator and grants search from a charity
Citizens AdviceFree advice on money, consumer and legal problems in England and Wales
GOV.UKOfficial information on tax, benefits and government services
MoneyHelperFree, impartial money and pensions guidance, set up by government