Universal Credit rollout invites Housing Benefit only and ESA(IR) with Child Tax Credit claimants

The next phase of the Universal Credit rollout began in 2024, with the Department for Work and Pensions inviting groups of legacy benefit claimants to move across. According to the Law Centre NI's Social Security Law and Practice Bulletin, published in June 2024, the July 2024 group covers "People claiming Housing Benefit only and people claiming Child Tax Credits with Employment and Support Allowance (Income Related)"¹.

The rollout has been staged by claimant group. The bulletin sets out the following order¹:

Policy in Practice, which tracks the managed migration timetable, gives a slightly different account of the earlier stages. It says people on Income Support, or households receiving both Tax Credits and Housing Benefit, would receive notices from April 2024, with notices likely to continue until June 2024, and that people on Housing Benefit only would be moved from June 2024². It also states that people claiming Employment and Support Allowance with Child Tax Credit would be moved from July 2024, and people on income-based Jobseekers Allowance from September 2024². The two sources therefore differ on the month given for Housing Benefit only claimants and on when notices began for Income Support and Tax Credit with Housing Benefit households.

Policy in Practice adds that pension age households receiving Tax Credits will be moved to Universal Credit or Pension Credit from August 2024, and that people on Employment and Support Allowance with Housing Benefit will move from 2025². It says Universal Credit managed migration will be rolled out in all areas by March 2025, and that the DWP aims to move everyone to Universal Credit by 2025, after which it will no longer operate legacy benefits².

On the process itself, Policy in Practice says households moved through managed migration receive a migration notice telling them their legacy benefits are ending, and that the notice will always include a deadline date². Claimants must then make a claim for Universal Credit manually, either online or by phone². It says households that claim before the deadline receive a transitional protection element within their initial Universal Credit payment, increasing the award to legacy benefit levels, and that this element is not permanent and reduces over time as circumstances change and awards are uprated². Households in receipt of Tax Credits with savings above £16,000 have those savings disregarded for 12 months². It also says households in supported or temporary accommodation will not receive a notice and their Housing Benefit claim will continue².

Why it matters for households

People in the groups being invited have their legacy awards, including Housing Benefit and income-related Employment and Support Allowance, brought to an end and must claim Universal Credit instead. The migration notice carries a deadline, and Policy in Practice says that if no claim is made following a notice, households will no longer receive any benefit support². The amount a household receives can change: those who claim before the deadline receive transitional protection to bring the initial award up to legacy levels, but that protection reduces over time². Policy in Practice also notes that households claiming Council Tax Reduction with legacy benefits may have to reclaim it, and that a reduction can stop if a claim is not made, potentially increasing council tax bills². It says households moving through natural migration, rather than managed migration, do not receive the same protection².

What happens next

The bulletin lists September 2024 as the next stage, for people claiming Jobseekers Allowance (Income-Based)¹. Policy in Practice lists pension age households receiving Tax Credits moving from August 2024, and people on Employment and Support Allowance with Housing Benefit moving from 2025². It says managed migration will be rolled out in all areas by March 2025². The bulletin also records that from 1 July 2024 the Department for Communities will record new data on claimants with pre-settled status¹.