Tons of of 1000’s of profit claimants have had their funds stopped in recent times, the Division for Work and Pensions (DWP) has revealed, because it continues to overtake the common credit score system.
Official statistics present that 356,521 households within the UK have had their advantages closed on account of failing to assert common credit score after being invited to.
This implies a lack of funds averaging over £1,000 a month, for failing to answer the “migration discover” that the DWP has despatched to most households nonetheless on “legacy advantages”.
These embody tax credit, revenue help, jobseeker’s allowance, employment and help allowance, and housing profit. The federal government is aiming to finish the migration of all of those advantages to common credit score by the top of March 2026.
Of the two.3 million households which have been despatched a migration discover thus far, 1.9 million have efficiently migrated. Round 10,000 are nonetheless present process the migration course of, which began in July 2022.
Whereas anybody who has their legacy advantages closed can later apply to common credit score, they won’t be assured the identical transitional safety. This ensures that every one individuals who undertake the DWP’s managed migration course of won’t see their complete funds lower consequently.
Nevertheless, the funds may even not enhance yearly consistent with inflation as in earlier years, as an alternative staying the identical till they’re equal to common credit score ranges.
Anybody who receives a migration letter has three months to make a common credit score declare. If no reply is obtained inside 11 weeks, the DWP says it would intervene with an “enhanced help journey” which may contain letters and even residence visits.
Welfare specialists proceed to advise any profit claimant who receives a letter to behave in good time to make sure they don’t miss out.
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Conor Lawlor, a profit specialist at Turn2Us, stated: “If somebody will get a managed migration letter now, they need to make a declare for common credit score earlier than the deadline of their letter to make sure they get transitional safety.
“They need to already be going by way of the improved help journey, so the DWP shall be in contact with them if there is not any response following a discover being issued. In the event that they want extra help with their declare, they need to use the Turn2us discover an adviser software.”
Analysis from the DWP launched this week discovered that a few of the key causes that folks select to not declare after receiving a letter are confusion about eligibility necessities, believing they have been incomes an excessive amount of, and feeling the method was an excessive amount of effort.
Some additionally believed that they had an excessive amount of in financial savings as, in contrast to with legacy advantages, no claimant with over £16,000 in financial savings can declare common credit score. Nevertheless, the DWP has stated this rule shall be disregarded for 12 months for anybody who undergoes managed migration.
A DWP spokesperson stated: “It will be significant folks reply to the letter asking them to make the transfer to common credit score as a way to proceed receiving advantages.
“Assistance is at hand for these making the transfer, together with our devoted helpline, steerage on gov.uk, and the Residents Recommendation’s free and unbiased assist to assert service.
“We’re additionally giving further assist to folks transferring from employment and help allowance, reminiscent of cellphone calls and extra steerage.”
