The Division for Work and Pensions (DWP) restarted the ‘managed migration’ strategy of transferring as much as 2.6 million folks presently claiming legacy advantages over to Common Credit score in Could.
Solely 500 folks in Medway and Bolton had been chosen to undergo the method as a part of the ‘discovery part’ earlier than DWP ramps up transfers to attain its completion deadline by the top of 2024.
Nonetheless, DWP has now introduced that the invention part will broaden to Cornwall subsequent week. Writing within the newest version of the Touchbase Bulletin, DWP stated: “From 25 July, we're increasing our discovery part to incorporate Truro and Falmouth. We'll ship a Migration Discover to a small variety of claimants on legacy advantages to allow them to know that they should transfer throughout to Common Credit score, clarify how the method will work and what they might want to do.”
DWP added: “Everybody transferring over from legacy advantages as a part of this course of can have their entitlement to Common Credit score assessed in opposition to their present claims, with transitional safety supplied for eligible claimants whose preliminary Common Credit score entitlement would have been lower than their entitlement to legacy advantages on the level of transferring to Common Credit score. These will proceed until their entitlement adjustments.”
You will need to notice that solely claimants going by means of Managed Migration can have their funds protected. If a change of circumstances is reported which triggers a change, this may be classed as a ‘Pure Migration’ transfer to Common Credit score.
Equally, requesting a transfer to Common Credit score from a legacy profit wouldn't qualify for transitional safety and can be counted as ‘Voluntary Migration’.
DWP additionally defined that a devoted helpline, solely out there on the letter claimants obtain, will present assist for folks to make their Common Credit score declare, and steering can even be out there on-line together with on the Understanding Common Credit score web site.
These in want of additional assist can even go to their native Jobcentre Plus.
Legacy advantages transferring to Common Credit score
- Earnings-Associated Employment and Assist Allowance (ESA)
- Earnings-Based mostly Jobseeker’s Allowance (JSA)
- Working Tax Credit score
- Little one Tax Credit score
- Earnings Assist
- Housing Profit
Everybody transferring over from legacy advantages can have their entitlement to Common Credit score assessed in opposition to their present claims, with high up funds out there for eligible claimants whose entitlement would have been diminished due to the change - making certain they obtain the identical entitlement as on a legacy system.
These will proceed until their circumstances change.
Migration course of from legacy advantages to Common Credit score
There are 3 ways folks can migrate to Common Credit score, outlined within the DWP’s ‘2022-24 technique for implementing the ultimate part of Common Credit score’ - you may learn it in full on the GOV.UK web site, right here.
These are:
- Pure migration - a change of circumstances triggers a transfer
- Voluntary migration - claimants chooses to maneuver
- Managed migration - DWP triggered
The DWP explains: “Of the two.6 million households remaining on legacy advantages in April 2022, ought to they select to assert UC in the present day, we estimate round 1.4 million (55%) would have the next entitlement on UC, 300,000 would see no change and roughly 900,000 households (35%) would have a decrease entitlement.”
The DWP additionally estimates that of the 900,000 households who would primarily be worse off transferring to Common Credit score, round 600,000 would obtain transitional safety by means of the managed migration course of, whereas others will “both go away advantages, migrate naturally earlier than DWP asks them to maneuver or obtain a extreme incapacity transitional cost”.
You possibly can learn the total information to the DWP's managed migration to Common Credit score on the GOV.UK web site, right here.
Which teams are anticipated to be higher or worse off on Common Credit score?
The DWP estimates ESA claimants who're within the assist group however who don't get the Extreme Incapacity Fee to be higher off on Common Credit score.
Households who get ESA and obtain the Extreme Incapacity Premium and the improved incapacity premium, are anticipated to be worse off.
Extra particulars about which teams may obtain the next or decrease entitlement on Common Credit score might be discovered right here.
DWP estimates on who will obtain increased or decrease entitlements or see no change to the quantity of profit they obtain are summarised under.
Increased entitlement after transferring to Common Credit score
- ESA claimants: 600,000
- Tax Credit (Working and Little one) claimants: 700,000
- Whole, together with different legacy advantages: 1.4 million
Decrease entitlement after transferring to Common Credit score
- ESA claimants: 500,000
- Tax Credit (Working and Little one) claimants: 300,000
- Whole, together with different legacy advantages: 900,000
No change after transferring to Common Credit score
- ESA claimants: 100,000
- Earnings Assist: 100,000
- Whole, together with different legacy advantages: 300,000
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Transitional safety
The DWP stated that round 400,000 ESA and 100,000 Tax Credit claimants will obtain transitional safety, which suggests they need to not see any discount of their advantages once they switch.
Nonetheless, the worth of this safety might be eroded yearly as a result of, excluding the childcare aspect, any annual improve in Common Credit score might be deducted from the transitional safety.
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