Completing the move to Universal Credit

The DWP has just published its policy on completing the move to Universal Credit. The work, known as ‘managed migration,’ was paused during the pandemic as the DWP focussed its efforts on responding to the surge of claimants at that time. It is now planning to resume the roll out and aims to complete the full implementation of Universal Credit by 2024.

Although there is some natural migration to Universal Credit when people’s circumstances change, for many housing associations, approximately two thirds of tenants who claim benefits are still receiving so-called ‘legacy benefits,’ so the numbers of people who will move to Universal Credit over the next two years is not insignificant.

The DWP has set out three ‘tracks’ of migration:

• Natural
• Voluntary
• Managed

'Natural migration' is when people’s circumstances change, such as employment status, and they need to make a new claim for benefit. This will mean that they will naturally move to Universal Credit.

'Voluntary migration' is aimed at people the DWP thinks will be better off on Universal Credit, and the policy sets out the methodology and assumptions behind this. The DWP estimates that around 1.4 million people may be better off (55% of claimants). Over 2.5 million households are still claiming legacy benefits, and people should always get independent advice from a welfare benefits expert before making a decision to move to Universal Credit. Those who choose to move voluntarily will not be entitled to any transitional protection and cannot revert to previous benefits if they find themselves worse off.

'Managed migration' is for people who do not choose a voluntary move and remain on legacy benefits. This is likely to include people in receipt of disability benefits, and the DWP estimates that 900,000 households will have a lower entitlement. In these cases, people will be entitled to transitional protection if the Universal Credit award is less than their current level of entitlement.

Given the numbers of people currently claiming legacy benefits, this is a complex issue for tenants and social landlords, and tenants will need support and advice before making any changes. The DWP has resumed engagement with stakeholders, so please contact me with any issues or concerns you might have. You can email emcmullan@sfha.co.uk 

Please also complete our recently relaunched Social Security and Financial Wellbeing Survey which plays a vital role in informing our conversations with the DWP.