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Universal Credit ‘managed migration’ delayed – but you can be moved onto profit early | Personal Finance | Finance

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The method whereby the DWP moves people over is generally known as ‘managed migration’ with people receiving a letter ahead of the executive change. But a person could also be moved over ahead of this process in some cases, which is generally known as ‘natural migration’.

Recent Work and Pensions Secretary Mel Stride told the Work and Pensions Committee this week that a claimant will robotically trigger a move in the event that they report a change of their circumstances.

In keeping with the Government website, changes can include:

  • Finding or ending a job
  • Having a baby
  • Moving in with a partner
  • Beginning to take care of a baby or disabled person
  • Changing a mobile number or email address
  • Moving to a recent address
  • Changing bank details
  • Rent going up or down
  • Changes to a health condition
  • Becoming too ailing to work or meet your work coach
  • Changes to earnings (just for the self-employed)
  • Changes to savings, investments and the way much money an individual has
  • Changes to immigration status, if a claimant is just not a British citizen.

Universal Credit is steadily being rolled out in several parts of the country, replacing these six legacy advantages:

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

Mr Stride told the cross-party panel of MPs that his department’s three essential objectives are helping essentially the most vulnerable, getting people back into work and tackling advantages fraud.

But some MPs challenged him and queried if the UK Government is taking money from those with the least by delaying moving some legacy claimants onto the brand new system, through sanctions, and by recovering overpayments.

Mr Stride told the Work and Pensions Committee the UK Government has a “particular duty now to concentrate on those most in need as we undergo these difficult times”.

Conservative MP Nigel Mills asked in regards to the delay to managed migration of individuals on legacy advantages reminiscent of Employment and Support Allowance (ESA) onto Universal Credit.

The migration process was as a result of be accelerated next 12 months ahead of the unique completion deadline at the tip of 2024.

But Chancellor Jeremy Hunt announced within the Autumn Statement the managed migration scheme could be delayed until 2028.

Mr Stride told the MPs that 33 percent of individuals on ESA are more likely to lose out as a consequence of that migration, and 55 percent will get an even bigger payment.

He said he sees the delay as an “opportunity for a reallocation of resources” to assist the department concentrate on those that need the assistance.

Individuals who will see their payments decrease may give you the option to get transitional protection, to maintain them at the identical level for a period, to avoid a sudden drop in income.

Forms of claimants who may get a lower payment with Universal Credit, and who could also be eligible for transitional protection, include:

  • Households who receive Employment and Support Allowance (ESA) with the Severe Disability Premium and Enhanced Disability Premium
  • Households with the lower disabled child addition on legacy advantages
  • Self-employed households who’re subject to the Minimum Income Floor, after the 12-month grace period has ended.
  • In-work households that work a selected variety of hours (for instance, lone parent working 16 hours claiming Working Tax Credits)
  • Households receiving tax credits with savings of greater than £6,000, and as much as £16,000.
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