DWP benefit change deadline could leave claimants without cash this Christmas

The date you choose to make the move from your old benefits to Universal Credit must be carefully considered

People claiming old-style benefits are being warned they could be left without money this Christmas if they don't choose the right moment to transfer across to Universal Credit. The DWP has sent out thousands of Migration Notice letters telling claimants to make the changeover within three months, a timeframe that will fall near or during the festive season for many households.

Universal Credit is taking the place of six legacy benefits: Child Tax Credit, Housing Benefit, Income Support, income-based Jobseeker's Allowance, income-related Employment and Support Allowance (ESA) and Working Tax Credit. If you're currently on any of these benefits, you don't need to do anything unless either your circumstances change or you receive a Migration Notice letter telling you to move to Universal Credit instead.

The Migration Notice will give you three months to apply for Universal Credit. An extra month 'grace period' can be offered if you don't take any action until the last minute and have a good reason for the delay. But people also need to be aware it takes five weeks after putting in a claim before the first Universal Credit payment arrives, so they need to plan their changeover carefully.

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In the final wave of the Universal Credit rollout, letters started to be sent in September to 20,000 people on income-based Jobseeker's Allowance along with 800,000 people claiming income-related Employment and Support Allowance (ESA) either on its own or with Housing Benefit. Migration Notices were also sent last month to people on tax credits who are in mixed-age households where one partner is of State Pension age and the other isn't. Meanwhile, 100,000 people on Housing Benefit and 80,000 people claiming income-related ESA alongside tax credits started to be contacted in July.

Many will have received a letter sometime in August or September telling them to move across to Universal Credit within three months, which would mean a deadline towards the end of November or in December for doing so. With the time taken to process an application including verifying someone's ID and benefit entitlement, the standard wait of five weeks - and sometimes longer - could mean their first payment won't arrive in their account until early in the new year. So they'd have no money over Christmas.

A 'new claim advance' can be offered to cover household expenses during the five-week wait and some legacy benefits pay an additional two weeks 'run-on' to help bridge the gap. But benefits advisors and other claimants who have already made the move are urging people to apply earlier rather than later. They also suggest people try to set aside some cash before they make the changeover because any new claim advance they do get will need to be repaid by deductions from future Univeral Credit payments.

The DWP said: "To continue receiving financial support you must claim Universal Credit by the deadline date given in your letter. This is three months from the date the letter was sent out. If you cannot claim Universal Credit by the deadline date, you should contact the Universal Credit Migration Notice helpline as soon as possible.

"You may be able to get more time to make a claim if you have a good reason. You must request this before your deadline date. If the amount you're entitled to on your existing benefits is more than you’ll get on Universal Credit, a top-up is available. This is called transitional protection. You can only get this additional amount if you have received a Migration Notice and claim by your deadline date. If your circumstances change after you've made your claim, any transitional protection you receive may stop.

"If you receive tax credits, you can make a Universal Credit claim even if you have more than £16,000. After 12 months, normal eligibility rules will apply and you will not be eligible for Universal Credit if you still have more than £16,000 in money, savings and investments. If you apply after the deadline date and have more than £16,000 you will not be able to claim Universal Credit."

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