The health element rate has been cut by over £200 a month for new claimants
Over the past few years, the Department for Work and Pensions has been migrating benefit claimants from six legacy benefits onto Universal Credit. Four benefits have already ended with Employment and Support Allowance and housing benefit the only ones still operating fully.
Now, people still moving between the benefits could face an even steeper drop in their payments if they don’t meet their migration deadline due to new Universal Credit rule changes that were introduced in April.
Previously, people claiming the health element of Universal Credit could receive up to £429.80 per month. Now, after the rule change, new claimants will only be eligible for a maximum of £217.26 per month.
This could mean people with health conditions who missed their migration deadline face a £200 steeper drop in their payments than those who moved over to Universal Credit just before the new rules were implemented.
However, they can still protect themselves from losing or interrupting their benefit payments by sticking to the deadline in their migration notice. This will mean they get ‘transitional protection’.
Transitional protection is meant to ensure that no one is left worse off after being forced to move from their legacy benefit to Universal Credit. It essentially allows them to bypass rules and criteria that would otherwise mean they don’t qualify for the same amount on Universal Credit that they received on their legacy benefit.
For example, if someone received £600 a month from Tax Credits but only qualifies for £400 from Universal Credit under the normal eligibility rules, the Transitional Protection will add an extra £200. So they end up with the same £600 payment each month.
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This protection could help new claimants avoid the steep cliff edge of the new health element rates while migrating their benefit claim. However, if you miss the deadline in your migration notice, you will not be able to get any Transitional Protection.
If you missed your transitional protection deadline or didn’t act on the migration letter at all, your legacy benefits will stop. You can still make a new claim for Universal Credit but you won’t receive transitional protection and will be held to the new health element rules. You will also need to meet the full requirements for Universal Credit and apply through the normal claim process.
If there’s a good reason that you can’t meet the deadline listed on your migration notice, you can contact the Universal Credit Migration Notice Helpline. They may be able to give you more time to make your claim but you’ll normally need to request this before the deadline.
The helpline is available from Monday to Friday, 8am to 6pm on 0800 169 0328. It’s important to note that if you’re getting legacy benefits you’ll only need to act if you receive a migration notice telling you to claim Universal Credit or if your circumstances change.
Tax credits, Income-based Jobseeker’s Allowance (JSA) and Income Support have already ended and been replaced by Universal Credit. Income-related Employment and Support Allowance and Housing Benefit, unless you’re in supported or temporary accommodation, will follow suit soon.
