IMAGE DESCRIPTION: An image of a couple of people on a laptop and using it to claim benefits with a circular image of someone completing a form. Title:The Daily Mirror covers Legacy Benefits moving over to Universal Credit (UC). The ME Association Logo (bottom right).

The Daily Mirror covers Legacy Benefits moving over to Universal Credit (UC)

Since the start of September, letters – called migration notices – are being sent to people who claim ESA telling them to make an application for Universal Credit

By Ruby Flanagan

Extracts

As letters have been sent to ESA claimants in September, the disruption would come at the worst possible time around Christmas. It makes it crucial that they are aware of what is happening. Under the managed migration plan, six older benefits – which are called “legacy” benefits – are being scrapped and these include:

  • Working Tax Credit
  • Child Tax Credit
  • Income-based Jobseeker’s Allowance (JSA)
  • Income Support
  • Income-related Employment and Support Allowance (ESA)
  • Housing Benefit

While PIP is not affected as part of the change, many claimants also get ESA so need to be aware of what is happening. There are differences between Universal Credit and ESA, and the Benefits and Work forum has highlighted the main ones as being:

  • Universal Credit is usually a monthly payment instead of fortnightly like ESA
  • The housing costs element of Universal Credit is usually paid to you rather than to your landlord – so you have to budget it and make the payments for your rent.
  • Universal Credit is paid as a single payment into one bank account. If you have a partner, you might be used to one of you receiving the ESA payment and the other receiving Child Tax Credit, for example
  • Universal Credit is a digital system – your claim is made online and you maintain it through an online journal
  • You will normally need to sign and adhere to a claimant commitment detailing your responsibilities. You will be placed in one of four conditionality groups depending on your circumstances and if it is not followed you will face sanctions

MEA Comment

There was always going to be a planned transition for those people claiming 6 “legacy” benefits (Income related JSA, income related ESA,  Income Support, Child Tax Credits, Working Tax Credits, and Housing Benefit) that were designed to be replaced with Universal Credit.

The original target for people to be moved from these old-style benefits to the new UC system has actually been delayed multiple times over the years, meaning that people receiving these benefits have remained on the old system for much longer than initially intended.

Universal Credit is an income-related benefit, designed to support those whose other sources of income fall below a minimum level; it is a benefit used to support both those who are working, those who are able to work, and those who are unable to work, either because of health reasons or because of other commitments and responsibilities such as caring for others.

The Work Capability Assessment used in ESA to determine whether someone is eligible for ESA and exempted from looking for work is also used in UC and is exactly the same assessment. Anyone who has an existing claim of ESA will have their existing status transferred to a UC claim. There are many people who currently claim ESA through their national insurance contributions, who also have a UC claim and their ESA status is recognised in their UC claim, exempting them from work requirements. 

The former Conservative government proposed many changes to our welfare benefits system, including the proposal that the Work Capability Assessment would be abolished completely. These changes were never formally enacted as they would require new legislation to be voted for in Parliament. As it stands, the WCA is still in place and remains the process by which the DWP decides who is deemed too “sick” to be required to work. This is the same whether someone claims ESA or claims UC.

For those that receive a Migration Notice, it is important for them to apply for Universal Credit as directed in their letter. This is because they are entitled to what is known as Transitional Protection, which means that they are guaranteed that their benefit income will not reduce under the new system they are transferred over to. Failure to apply for UC within the time frame means they could lose their protection, even if they make a UC claim later on.

Ella Smith, 
Welfare Rights Adviser
.
The ME Association.

Ella Smith - MEA Welfare Benefits Adviser 

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