Our interviews show that claimants did not have the information they needed or wanted to understand how moving to UC would affect them. Such misinformation and misunderstanding are likely to be reasons some people are not moving to UC despite having a strong financial incentive to do so.
Today the DWP published the latest data on the outcomes of tax credit claimants who have been sent their ‘migration notice’. This is a letter informing people that they have three months to make a claim for universal credit (UC), at which point their tax credit payments will be terminated. The data reveals that 16,000 people sent a migration notice did not make the transition to UC and had their legacy benefits terminated. This equates to 27 per cent of those who have been sent a migration notice and reached their deadline (based on those sent a migration notice in the first half of 2023).
CPAG in Scotland’s Early Warning System has been operating for ten years! Over Challenge Poverty Week we are looking back at some of the social security events in this period, key findings from the Early Warning System and how they have influenced policy and practise. Today we are looking back at universal credit and how Early Warning System evidence can influence its future.
As more families migrate from older benefits to universal credit, new official figures show there are 2.3 million children in households on universal credit (UC) which are having debt deductions from their benefit, forcing them to live on significantly less than their entitlement.
28% of tax credit claimants who are required to move to universal credit haven’t claimed and have had their benefits stopped and their cost-of-living payments also at stake.
Two-thirds of people sent a migration notice between November 2022 and March 2023 made a successful UC claim before their migration deadline. A further 5 per cent made a claim after their deadline had passed. And 28 per cent did not claim UC at all and had their legacy benefit payments terminated. We are concerned that a sizeable minority of claimants are falling through the gaps.
The benefit cap and the two-child limit has caused hardship to tens of thousands of families, with both policies failing to meet their original aims, according to the findings of a new study.