Moving to Universal Credit if you have an existing Tax Credits or other legacy benefit claim

The government are in the process of moving people on the old benefits system over to Universal Credit. This process is known as ‘managed migration’.

Universal Credit is now the main benefit that can be claimed by working age people on a low income. It can be claimed by people in lots of different situations, including whether you are in or out of work. It can include extra amounts if you’re responsible for children, are caring for a disabled child or adult or are unable to work due to ill health or disability. You can also get help with rent and childcare costs through Universal Credit.

See our page on Universal Credit for detailed information about what it is and how it works.

If you are on any of the following benefits (which are known as legacy benefits), the DWP will send you a letter telling you that your benefits are ending and inviting you to claim Universal Credit instead. The letter is known as a ‘Universal Credit Migration Notice’:

• Working Tax Credit
• Child Tax Credit
• Income Support
• Housing Benefit (for working age people)
• Income-related Employment and Support Allowance
• Income-based Jobseeker’s Allowance

The above benefits are the only benefits that are being replaced by Universal Credit.

The government aim to send out migration notices to all legacy benefit claimants by December 2025.

I’ve received my migration notice. Do I have to claim Universal Credit?

You do not have to claim Universal Credit. It is your choice whether to claim it. However, your legacy benefits will still stop regardless of whether you claim Universal Credit or not. If you rely on your benefits to meet your living costs and rent, you will need to claim Universal Credit to continue to get financial support.

Will I automatically be moved onto Universal Credit?

No, you will not be moved onto Universal Credit automatically. You must make a claim for Universal Credit by the deadline date in your migration notice letter.

If you don’t claim Universal Credit by your deadline date your legacy benefits will stop and you will be left without any financial support.

How do I claim Universal Credit?

Most claims for Universal Credit are made online on the gov.uk website.

If you are unable to make or manage a claim online you can make a telephone claim instead by calling the Universal Credit helpline on 0800 328 5644.

If you need help making your claim contact Citizens Advice Help to Claim Service.

When should I claim Universal Credit?

Your migration notice letter will tell you the deadline by which you need to make a claim for Universal Credit, which is usually three months after the date you receive your migration notice. If you claim Universal Credit any time within this period you may be entitled to transitional protection (more on this below) to ensure that you are not worse off than you were on your legacy benefits.

Your legacy benefit will terminate from the day before your make your Universal Credit claim, but you will get a 2 week run-on of Income Support, Housing Benefit, Income-related Employment and Support Allowance and Income-based Jobseeker’s Allowance. You do not get a 2 week run-on of Working Tax Credit or Child Tax Credit. It may be beneficial for you to wait until after you’ve recently received a legacy benefit payment before claiming Universal Credit. This is because it takes around 5-6 weeks to get your first Universal Credit payment.

If you are working and are paid monthly, you might want to avoid making your Universal Credit claim on or around your usual pay date. This is because two monthly wages might be used some months when calculating your Universal Credit entitlement. This may happen, for example, if your employer pays you early or reports your pay to HRMC via the PAYE system early due to a bank holiday or your usual pay day falling on a weekend.

If you are not sure when is the best time for you to make your Universal Credit claim we recommend that you get further advice.

What happens if I miss my deadline?

Your migration notice letter tells you what date you need to claim Universal Credit by. This is known as your deadline day and is usually three months after the date you receive your migration notice.

Your legacy benefits will end the day before your deadline. If you don’t claim Universal Credit by your deadline, you may miss out on transitional protection (see below for information on this) and you may be left without financial support for around 5-6 weeks, which is the usual time it takes to receive your first Universal Credit payment.

If you cannot claim Universal Credit by your deadline, you may be able to get an extension. You will need to call the Universal Credit Migration Notice helpline on 0800 169 0328 to ask for an extension.

Provided that you claim Universal Credit within one month of your deadline (known as your ‘final deadline’) you may still be entitled to transitional protection (more on this below) to ensure that you are not worse off on Universal Credit.

If you claim Universal Credit after your final deadline you will not be eligible for transitional protection. This means that you might be worse off on Universal Credit than you were on your legacy benefits.

Can I claim Universal Credit before I get my migration notice letter?

Yes, you can choose to move to Universal Credit any time. However, if you are on legacy benefits and move before you receive your migration notice you will not be entitled to transitional protection (more on this below) and could end up worse off.

You might get a letter or leaflet preparing you for the move to Universal Credit before you receive your official migration notice letter. It is really important to note that this is not your official migration notice and if you claim Universal Credit at this point, you will not be eligible for transitional protection.

Some people may be better off on Universal Credit so it may be beneficial for you to move to Universal Credit sooner. However, some people are receiving more in legacy benefits than they would get if they move to Universal Credit without transitional protection. Therefore, if you are not sure about whether you should move to Universal Credit before you receive your migration notice we recommend that you get further advice.

What is transitional protection?

Transitional protection helps to make sure that you are not worse off on Universal Credit than you were on your legacy benefits.

If the amount of Universal Credit you are entitled to is less than your legacy benefits, your Universal Credit award will include a transitional element to top-up your Universal Credit to the level of your legacy benefits.

Transitional protection erodes over time and can also stop if you have a change of circumstances.

The calculation of the transitional element is complex, so if you are unsure whether you should be getting a transitional element, whether your transitional amount is correct, or if a change could affect your transitional element we recommend that you get further advice.

The government have produced guidance on transitional protection on the gov.uk website.

I get Tax Credits and have savings over £16,000, will I be able to claim Universal Credit?

You cannot normally claim Universal Credit if you have savings or other assets (called capital by Universal Credit) over £16,000. However, if you claim Universal Credit after you have received your migration notice and before the deadline (or final deadline) any capital/savings you have over £16,000 is disregarded for the first 12 months of your claim.

However, any capital/savings you have between £6,000 and £16,000 will be taken into account when calculating your Universal Credit. You are treated as having a monthly income of £4.35 for every £250, or part of £250, of capital/savings you have between £6,000 and £16,000. Anything over £16,000 is ignored for 12 months.

For example, if you have £17,200 of capital/savings, the first £6,000 is ignored (this is part of the usual Universal Credit rules) and anything over £16,000 is ignored. You are treated as having a monthly income of £4.35 for every part of £250 between £6,000 and £16,000 – as there are 40 parts of £250 between £6,000 and £16,000 you will be treated as having a monthly income of £174 (£4.35 x 40). Then the remaining £1,200 over £16,000 is ignored for 12 months.

After 12 months if you still have capital/savings over £16,000 you will stop being entitled to Universal Credit.

It is really important note that during the initial 12 month exemption period, if your savings dip below £16,000 and then go back over £16,000, the exemption will no longer apply and you will lose entitlement to Universal Credit.

What are the main differences between legacy benefits and Universal Credit?

Universal Credit is usually paid monthly in arrears. However, in Scotland you can choose to be paid twice monthly.

Help with rent is usually paid directly to you and you are expected to pay your landlord yourself.

You may have work-related requirements that you did not have on your legacy benefits.

If you are self-employed your Universal Credit award may be worked out on an assumed level of earnings rather than what you have actually earned.

Debt payments including council tax, energy bills, child maintenance and rent arrears can be deducted directly from your Universal Credit payments.

Overpayments of Tax Credits can be deducted directly from your Universal Credit payments.

See our page on Universal Credit for more detailed information about how Universal Credit works. Seek further advice if you are unsure how Universal Credit might affect you.

Where can I get advice about the move to Universal Credit?

If you are a working parent or carer and need further advice about moving to Universal Credit you can contact us via our helpline on 0300 012 0312 or by filling out our advice contact form.

Citizens Advice can help with general advice about moving to Universal Credit.

Help to Claim can help you make your Universal Credit claim.

If you need advice about budgeting or managing your money contact Money Helper.

You can also search for a local advice organisation on the Advice Local website.

This advice applies in England, Wales and Scotland. If you live in another part of the UK, the law may differ. Please call our helpline for more details. If you are in Northern Ireland you can visit the Labour Relations Agency or call their helpline Workplace Information Service on 03300 555 300.

If you have further questions and would like to contact our advice team please use our advice contact form below or call us.

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