A significant change to Universal Credit could leave some claimants financially worse off if they fail to meet their migration deadline. The health element rate has been reduced by more than £200 per month for new claimants, according to recent updates from the Department for Work and Pensions.
Understanding the Health Element Reduction
Previously, individuals receiving the health element of Universal Credit could obtain up to £429.80 per month. However, following a rule change implemented in April, new claimants are now only eligible for a maximum of £217.26 per month. This reduction could result in a steep drop in payments for those with health conditions who miss their migration deadline, compared to those who transferred before the new rules took effect.
Transitional Protection: A Safety Net
Claimants can still safeguard their benefit payments by adhering to the deadline stated in their migration notice. This ensures they receive transitional protection, which prevents them from being worse off after moving from legacy benefits to Universal Credit. Transitional protection effectively allows claimants to bypass new rules and criteria that would otherwise reduce their entitlement.
For example, if someone received £600 per month from Tax Credits but only qualifies for £400 under Universal Credit's standard rules, transitional protection adds an extra £200, maintaining their original £600 payment. This protection is crucial for new claimants to avoid the abrupt financial impact of the reduced health element rates.
Consequences of Missing the Deadline
If a claimant misses the migration deadline, they lose eligibility for transitional protection. Their legacy benefits will cease, and they can still apply for Universal Credit but will be subject to the new health element rules. They must also meet all standard Universal Credit requirements and go through the normal claims process.
What to Do If You Missed the Deadline
For those unable to meet the deadline due to valid reasons, contacting the Universal Credit Migration Notice Helpline is advised. The helpline may grant additional time to submit a claim, but requests should ideally be made before the deadline. The helpline operates Monday to Friday, 8am to 6pm, at 0800 169 0328.
It is important to note that only individuals receiving a migration notice or experiencing a change in circumstances need to act. Legacy benefits such as tax credits, Income-based Jobseeker's Allowance, and Income Support have already been replaced by Universal Credit. Income-related Employment and Support Allowance and Housing Benefit (except for those in supported or temporary accommodation) will also be phased out soon.
