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North Wales Live
22-07-2025
- Business
- North Wales Live
People who get four different DWP benefits urged not to ignore letter
While the Universal Credit and Personal Independence Bill is grabbing attention in Parliament, the transition to Universal Credit is quietly taking place. This managed migration began in May 2022 with the aim of moving all recipients of six legacy benefits onto the Universal Credit system. The DWP intends to send out migration notices to all remaining claimants by the end of this year, with a plan to close all legacy benefits by March 2026. Working Tax Credit and Child Tax Credit have already been phased out due to the migration. However, claimants of four other benefits are still being transferred and should anticipate a letter from the DWP if they haven't received one yet. The following benefits are set to cease soon as part of the Universal Credit migration: Income-related Employment and Support Allowance (ESA) Income Support Income-based Jobseeker's Allowance (JSA) Housing Benefit People claiming these benefits who are affected by the migration will be sent a migration notice letter from the DWP. It's vital that people don't disregard this letter, as the migration won't be automatic and your benefits will terminate even if you decide not to claim Universal Credit, reports the Mirror. The letter you'll receive will include a personal deadline date, which is the final day you can apply for Universal Credit and still be eligible for transitional protection. You're free to apply for the benefit after this date or even before receiving a migration notice, but you'll miss out on this safeguard. The DWP clarifies: "As you've received a Migration Notice letter some of the normal eligibility rules for claiming are different. This is part of 'transitional protection'." This transitional protection is designed to make sure that individuals receive the same amount on Universal Credit as they did from their previous benefits, regardless of whether they fit the new criteria, to prevent anyone from being worse off due to the change. Take, for instance, if you were getting £140.55 weekly on ESA but under Universal Credit's standard rules, you're only entitled to £100, you'd receive an extra £40.55 per week as transitional protection. Sign up for the North Wales Live newsletter sent twice daily to your inbox Should you find yourself unable to apply before your transitional protection deadline, it's crucial to ring the Universal Credit Migration Notice Helpline at 0800 169 0328. If you have a valid reason and contact them before your deadline, you might be granted an extension. To claim Universal Credit, you can go online and set up a Universal Credit account. Remember, you must finish your application within 28 days of creating the account. Alternatively, you can apply over the phone using the Universal Credit Migration Notice Helpline. The shift to Universal Credit is still ongoing, with a significant overhaul planned for next year. The proposed alterations in the forthcoming Bill will slash and freeze the health component rate for new claimants from April 2026. Those already receiving the benefit before the change comes into effect will be shielded from the reduction. Considering the government's plan to send out all migration notices by December 2025 and wrap up all legacy benefits by March 2026, those transitioning to Universal Credit should also be safeguarded by this concession.
Daily Mirror
21-07-2025
- Business
- Daily Mirror
DWP claimants issued with letter in post after major cut in payments
The DWP is in the process of replacing six legacy benefits with Universal Credit, but there have been concerns about the migration process, with claimants reporting payment cuts Benefit claimants undergoing a significant transition have been affected by payment reductions due to delays in verifying their ID and financial details. The Department for Work and Pensions has stated that it has made improvements to rectify the issues, which resulted in some individuals reporting considerable payment decreases. As part of its 'managed migration,' thousands are receiving letters informing them that their current benefits will cease and they need to apply for Universal Credit instead. In total, six legacy benefits are being replaced by Universal Credit. These include Income Support, Housing Benefit, Working Tax Credit, Child Tax Credit, income-based Jobseeker's Allowance and income-related Employment and Support Allowance (ESA). Both forms of tax credits have already been abolished as of April 2025, after everyone was requested to transition before that date. Those who still need to make the switch are primarily people on income-related ESA, reports Birmingham Live. The DWP anticipates having sent all 'migration notice' letters to ESA claimants by December, enabling them to be successfully transferred to Universal Credit before the current financial year concludes on April 5, 2026. Many of those receiving income-related ESA belong to a support group where they cannot work due to health conditions and disabilities. Their physical and mental vulnerabilities mean they are likely to require assistance with the transfer process to ensure they switch before their previous benefits are cut off and receive the correct amount of Universal Credit rather than facing a payment reduction. ESA claimants in the support group should be automatically transferred into Universal Credit's equivalent category for those with long-term sickness or disability. However, concerns have been raised after some claimants received the wrong amount of Universal Credit following the changeover. Benefits advice workers believe this occurred because some people's ID and details were not verified immediately, so an individual's first Universal Credit payment may have been reduced as it only reflected what had been confirmed at that time. The DWP says it is tackling these issues and has enhanced the ID verification process. Sir Stephen Timms, minister for social security and disability, said: "Adequate resourcing for the transition is an important priority for the department. "The department has identified a small number of cases where the payments due have not all been paid in full in the first assessment period, due to delays in the process. "The problem has been addressed by introducing additional automation, and increasing the resources to deal with these cases. DWP has also enhanced the identity verification process, reducing the requirement for customers to attend the office or receive a home visit. "We have robust plans in place to support the safe migration of cases onto UC. We will continue to monitor the position on these cases carefully through to the end of the migration activity, responding quickly if difficulties arise." Sir Stephen was answering a query from Dr Beccy Cooper, Labour MP for Worthing West. She enquired what evaluation the DWP had conducted regarding "the adequacy of administrative capacity to manage the volume of transitions from Employment and Support Allowance to Universal Credit. "What steps [were being taken] to ensure that vulnerable claimants do not experience prolonged delays or shortfalls in payment due to outstanding actions as a result of these transitions."
Daily Mirror
20-07-2025
- Business
- Daily Mirror
Brits who get four benefits warned not to ignore DWP letter that will stop payments
People on these benefits will be moved to Universal Credit amid the welfare reforms, but they'll need to act as this won't be automatic While the Universal Credit and Personal Independence Bill is making headlines in Parliament, the migration to Universal Credit is quietly underway. This managed migration kicked off in May 2022 with the goal of shifting all recipients of six legacy benefits onto the Universal Credit system. The DWP aims to send out migration notices to all remaining claimants by the end of this year, with a view to shutting down all legacy benefits by March 2026. Working Tax Credit and Child Tax Credit have already been phased out due to the migration. However, claimants of four other benefits are still being transferred and should expect a letter from the DWP if they haven't received one yet. The following benefits are set to end soon as part of the Universal Credit migration: Income-related Employment and Support Allowance (ESA) Income Support Income-based Jobseeker's Allowance (JSA) Housing Benefit People claiming these benefits who are affected by the migration will be sent a migration notice letter from the DWP. It's crucial that people don't ignore this letter, as the migration won't be automatic and your benefits will end even if you decide not to claim Universal Credit. The letter you'll receive will include a personal deadline date, which is the final day you can apply for Universal Credit and still be eligible for transitional protection. You're free to apply for the benefit after this date or even before receiving a migration notice, but you'll miss out on this safeguard. The DWP clarifies: "As you've received a Migration Notice letter some of the normal eligibility rules for claiming are different. This is part of 'transitional protection'." This transitional protection is designed to make sure that individuals receive the same amount on Universal Credit as they did from their previous benefits, regardless of whether they fit the new criteria, to prevent anyone from being worse off due to the change. Take, for instance, if you were getting £140.55 weekly on ESA but under Universal Credit's standard rules, you're only entitled to £100, you'd receive an extra £40.55 per week as transitional protection. Should you find yourself unable to apply before your transitional protection deadline, it's crucial to ring the Universal Credit Migration Notice Helpline at 0800 169 0328. If you have a valid reason and contact them before your deadline, you might be granted an extension. To claim Universal Credit, you can go online and set up a Universal Credit account. Remember, you must finish your application within 28 days of creating the account. Alternatively, you can apply over the phone using the Universal Credit Migration Notice Helpline. The shift to Universal Credit is still ongoing, with a significant overhaul planned for next year. The proposed alterations in the forthcoming Bill will slash and freeze the health component rate for new claimants from April 2026. Those already receiving the benefit before the change comes into effect will be shielded from the reduction. Considering the government's plan to send out all migration notices by December 2025 and wrap up all legacy benefits by March 2026, those transitioning to Universal Credit should also be safeguarded by this concession.
Scottish Sun
09-07-2025
- Business
- Scottish Sun
‘Unbeatable' bank account for millions on Universal Credit that could help you save £1,200
We explain how the scheme works and how much you can get BANK ON IT 'Unbeatable' bank account for millions on Universal Credit that could help you save £1,200 MILLIONS of people on Universal Credit could earn £1,200 in free cash with an 'unbeatable' bank account. Help to Save is a type of savings account that gives you a 50% bonus on any money you squirrel away. Advertisement 1 Millions of people on Universal Credit can get £1,200 free cash with bank account Credit: Getty Anyone on Working Tax Credit or receiving Universal Credit can open one. You can pay in between £1 and £50 each calendar month and save into the account for up to four years. The bonuses are paid at the end of the second and fourth years, with the maximum bonus worth £1,200. If you paid in the maximum of £50 a month for a year then you could earn £300 over the year. Advertisement But if you opened the account now and paid into it until the new year then you would earn £125. The scheme has paid out millions of pounds to more than 500,000 people since it was launched in 2018. Meanwhile, MoneySavingExpert founder Martin Lewis has described the account as 'unbeatable'. But David Cameron, who launched Help to Save when he was Prime Minister, said up to 3.5million people could be eligible for the scheme, meaning millions are missing out. Advertisement How does Help to Save work? Help to Save is a type of savings account that is available to people who receive Tax Credits and Universal Credit. The scheme is government-backed so all of your money is protected and you will not lose anything you pay in. You can open a Help to Save account if you are receiving Universal Credit and you had a take-home pay of £1 or more in your last monthly assessment period. Your take-home pay is your pay after deductions such as tax or National Insurance. Advertisement If you stop claiming benefits you can keep using your Help to Save account. One thing to consider is that if your Help to Save cash means you have more than £6,000 in personal savings, it can affect whether you are eligible for some benefits and how much you get. How you can find the best savings rates If you are trying to find the best savings rate there are websites you can use that can show you the best rates available. Doing some research on websites such as MoneyFacts and price comparison sites including Compare the Market and Go Compare will quickly show you what's out there. These websites let you tailor your searches to an account type that suits you. There are three types of savings accounts fixed, easy access, and regular saver. A fixed-rate savings account offers some of the highest interest rates but comes at the cost of being unable to withdraw your cash within the agreed term. This means that your money is locked in, so even if interest rates increase you are unable to move your money and switch to a better account. Some providers give the option to withdraw but it comes with a hefty fee. An easy-access account does what it says on the tin and usually allow unlimited cash withdrawals. These accounts do tend to come with lower returns but are a good option if you want the freedom to move your money without being charged a penalty fee. Lastly is a regular saver account, these accounts generate decent returns but only on the basis that you pay a set amount in each month. If you or your partner have £6,000 or less in personal savings, this will not affect how much Universal Credit or Housing Benefit you get. This includes any savings in your Help to Save account, including bonuses. Advertisement Any savings or bonuses you earn through Help to Save will also not affect how much Working Tax Credit you get. Are there any other options? If you're not on Universal Credit or Tax Credits so don't qualify for a Help to Save account, you do have some other options. It is always a good idea to have an easy-access savings account so you can withdraw money whenever you need to. But make sure you read the small print as some have withdrawal limits which if you breach could mean your interest rate falls. Advertisement At time of writing you can get 5% on savings of up to £3,000,000 with Chase Bank and there is no minimum pay in. Meanwhile, you can earn 4.75% with Atom Bank and can open the account with just £1. But if you make a withdrawal in a month then the rate drops to 2.5%. Another option is a regular savings account, which allows you to put money away each month and the interest is paid yearly. Advertisement These accounts offer higher interest rates than traditional or easy-access savings accounts but usually impose rigid rules such as limiting the number of withdrawals you can make. They will also usually cap how much you can save. Zopa customers can earn 7.1% interest on up to £300 a month with its regular savings account. To be eligible you need to have a Zopa 'Biscuit' current account. Advertisement First Direct will give you 7% interest if you pay in between £25 and £300 a month into its regular savings account. If you paid in the maximum £300 a year then you would earn £135 a year in interest. But if you close the account early then you will only get 1.75% interest. Do you have a money problem that needs sorting? Get in touch by emailing money-sm@ Advertisement Plus, you can join our Sun Money Chats and Tips Facebook group to share your tips and stories
Daily Mirror
10-06-2025
- Business
- Daily Mirror
DWP warning to people making new claim for Universal Credit
You could previously use payslips or P60s to confirm your identity online when applying for Universal Credit - but the DWP removed this option in April this year A major change to how you apply for Universal Credit has been introduced by the Department for Work and Pensions (DWP). When you apply for Universal Credit, you need to prove your identity. You could previously use payslips or P60s to confirm your identity online - but the DWP removed this option in April this year. On the website, it reads: 'Universal Credit no longer uses Government Gateway or Verify for online verification.' You can use any two of the following items to verify your identity online: UK passport Self-assessment returns Credit references or records Get the best deals and tips from Mirror Money You can also verify your identity in person if you have an appointment at your nearest Jobcentre Plus, by bringing in proof of ID and proof of your address. It comes after Universal Credit payments went up by 1.7% this April. Universal Credit is made up of a standard allowance which is based on your age and if you're claiming as a single person, or in a couple. The standard allowance is the basic amount you get before any additional elements you may be entitled to, or any deductions, are taken into account. Here is how much the Universal Credit standard allowance has risen by: Single under 25: from £311.68 a month to £316.98 a month Single 25 or over: from £393.45 a month to £400.14 a month Joint claimants both under 25: from £489.23 a month to £497.55 a month Joint claimants, one or both 25 or over: from £617.60 a month to £628.10 a month You may be subject to deductions if you have savings or if you owe the DWP money. If you work, there is a taper rate which reduces your maximum Universal Credit payment as your earnings increase. The taper rate is 55% which means 55p is deducted from your maximum Universal Credit payment for every £1 you earn. Some people get a "work allowance" which is a set amount you can earn before your Universal Credit is reduced. If you have over £6,000 in money, savings and investments, your benefit will be reduced by £4.35 for every £250 you have between £6,000 and £16,000. Another £4.35 is taken off even if any extra amount you have saved is not quite £250. For example, if you have £6,300 in savings, you won't not face any deductions on the first £6,000, but the other £300 would see your payments deducted by £8.70. These figures apply if you're a single claimant, or claiming as part of a couple. Universal Credit is replacing six older legacy benefits, including Working Tax Credit, Child Tax Credit, Income Support, Income-based Jobseeker's Allowance, Income-related Employment and Support Allowance and Housing Benefit.
