Universal Credit

Tuesday 28th March 2023 Written Statements

[The Minister for Employment (Guy Opperman)]

Since its introduction in 2013, universal credit has protected the most vulnerable in society, supported households through periods of financial uncertainty, and helped people progress in work and move into better-paid jobs. A dynamic benefit that reflects people’s needs from month to month, universal credit successfully supports millions of people, and ensures that individuals are provided with the support they need to increase their earnings and move into better-paid, quality jobs.

In April 2022, the Government set out their plan to complete the move to universal credit and published “Completing the move to Universal Credit”, learning from the pilot that was paused in 2020.

In May 2022, we commenced our discovery phase. Initially, we issued 500 migration notices to households in Bolton and Medway. This notification letter sets out the requirement to make a claim to universal credit in order to continue to receive financial support from the Government. It advises that they have a minimum of three months to make their claim and provides details of the support available.

Following these initial notifications, we expanded the discovery phase to Truro and Falmouth in July 2022, Harrow in August 2022, Northumberland in September 2022, and more recently all postcodes in Cornwall during February 2023.

In January 2023, we published our learning from the earliest testable service, which set out our initial learnings from the discovery phase. It also set out the Department’s plans for the move to universal credit in 2023-24 and 2024-25.

We are now preparing to increase the numbers of migration notices issued and will expand into additional areas, bringing in the whole of Great Britain during 2023-24—social security is a transferred matter in Northern Ireland.

Through 2023-24, our focus will be on notifying households that receive tax credits only, increasing volumes incrementally each month. As we move into 2024-25, all cases with tax credits—including those on both employment support allowance and tax credits—all cases on income support and jobseeker’s allowance (income-based) and all housing benefit cases, including combinations of these benefits, will be required to move to universal credit.

At the point of moving over to universal credit—for those claimants moving through the managed migration process—legacy benefit claimants will be assessed for transitional protection and paid where appropriate. The aim of this temporary payment is to maintain benefit entitlement at the point of transition so that claimants will have time to adjust to the new benefit system.

In line with the 2022 autumn statement, the Government are delaying the managed migration of claimants on income-related employment support allowance—except for those receiving child tax credit—to universal credit. Employment support allowance claimants, however, are still able to make a claim for universal credit if they believe that they will be better off.

This Government remain committed to making this a smooth and safe transition. As we move to the next phase of the move to universal credit, we will continue to build on our learning to ensure that the service continues to meet the needs of those required to make the move to universal credit.

[HCWS678]