What benefits is Universal Credit replacing?
Universal Credit is gradually replacing certain benefits. If you currently receive one of those legacy benefits, you'll have to move onto Universal Credit by 2023. Find out which benefits Universal Credit is replacing.
Universal Credit is replacing the following six means-tested legacy benefits:
- Housing benefit
- Income Support
- Income-based Jobseekers Allowance (JSA)
- Income-related Employment and Support Allowance (ESA)
- Child Tax Credit
- Working Tax Credit
Most people are no longer able to make a new claim for legacy benefits and will need to apply for Universal Credit.
If you're currently claiming a legacy benefit, how and when you move to Universal Credit is determined by:
- Whether you have to make a new claim because of a change in circumstances. This is known as natural migration to Universal Credit.
- Nothing has changed, but the Department for Work and Pensions (DWP) have asked you to start claiming Universal Credit. This is called managed migration to Universal Credit.
If you would prefer, you can choose to apply for Universal Credit instead of your current legacy benefit. However, you will not be able to return to the benefit it is replacing.
What are the differences between Universal Credit and legacy benefits?
Universal Credit works differently from the legacy benefits. It is essential that you know the differences between them. The most significant differences are:
- You can receive Universal Credit if you're either unemployed or employed.
- A single payment is made monthly, rather than weekly or fortnightly.
- Unlike housing benefit, your rent will be paid into your account as part of your monthly Universal Credit payment.
Moving to Universal Credit because your circumstances have changed
If you currently claim a legacy benefit but your work, home or family situation has changed, you might need to move on to Universal Credit - known as natural migration.
You should report a change in circumstances immediately. If you don't report a change and you're judged to have been paid too much, you will have to pay the money back in the future and may receive an additional penalty charge.
A change in circumstances could be:
- A partner leaves your household.
- A partner joins your household.
- You or your partner's employment status, such as starting a new job, or increasing or decreasing your hours.
- You move house to a new local authority.
- You start/stop becoming a carer.
- You start/stop a claim based on a disability.
If you have to make a new claim for Universal Credit because of a change in circumstances, transitional protection is not available for you. This means you could receive more or less than you do with your legacy benefit.
Your old benefits will stop once you claim Universal Credit. If you currently claim Housing Benefit, Income Support, Income-based JSA or Income-related ESA you will recieve an additional two week payment at your current rate.
Moving to Universal Credit if your circumstances don't change
If your circumstances haven't changed and you currently claim benefits which are being replaced by Universal Credit, you will be asked by the DWP to claim Universal Credit.
This is known as managed migration to Universal Credit and is expected to start by November 2020 and completed by December 2023.
Transitional protection will be available to managed migration claimants. Universal Credit transitional protection is a top-up award which ensures you are not financially worse off when your benefits are moved onto Universal Credit.
If your Universal Credit payment is less than your current legacy benefit entitlement, you will automatically receive transitional protection to top up your Universal Credit.
- Introduction to Universal Credit
How will moving to Universal Credit affect you
- What benefits is Universal Credit replacing?
- How will Universal Credit affect Child Tax Credits?
- How will Universal Credit affect Working Tax Credits?
- How will Universal Credit affect my Income Support?
- How will Universal Credit affect my ESA?
- How will Universal credit affect Housing Benefit?
- How will Universal Credit affect Council Tax?
Help with your Universal Credit claim
- How to apply for Universal Credit
- How to fill in your Universal Credit application form
- How to reapply for Universal Credit
- What is the Universal Credit Claimant Commitment?
- How to claim Universal credit with a mental health condition
- How to prepare for your Universal Credit Work Capability Assessment
- How to claim Universal Credit when working
- How to claim Universal Credit when self employed
- How to claim Universal Credit as a student?
- Help if you already claim Universal Credit
- Universal Credit sanctions
- Challenging a Universal Credit decision
- Universal Credit resources