The government is changing the way in which Tax Credits are paid. If you are currently in receipt of Tax Credits, you will be moved over to Universal Credit (UC) in a process called ‘managed migration’.
Migration is not an automatic process to move you onto UC. The Department of Work and Pensions (DWP) will send you a migration notice, and then you will have 3 months from the date of the notice to make a new claim.
If you make a claim during this time, there should be no break in your claim, and you should be able to receive transitional protection. Transitional protection is an amount which tops up your UC payment, so that you are not substantially worse off when you move onto UC from legacy benefits.
If you do not claim by the deadline or by an extension date that you have agreed with DWP, you will not be eligible for any transitional protection.
If your UC claim increases, your transitional protection amount will be reduced. This is because the transitional protection is a top up payment so if your UC claim is increasing, it’s bringing you closer to the amount you were previously receiving before moving to UC.
Some benefit rates increase each year, this does not include the transitional protection amount.
Who is affected?
The changes only apply to those who are Tax Credits-only recipients. This means that they receive Child or Working Tax Credit but don’t also receive Income Support, Income-based Job Seeker’s Allowance, Housing Benefit, or income based Employment Support Allowance.
You can find more information and support by visiting the websites:
If you need further support, please contact our Money Advice Team.