{"id":68715,"date":"2023-08-31T00:47:17","date_gmt":"2023-08-31T00:47:17","guid":{"rendered":"https:\/\/geels.net\/?p=68715"},"modified":"2023-08-31T00:47:17","modified_gmt":"2023-08-31T00:47:17","slug":"universal-credit-warning-as-thousands-face-losing-benefits-worth-578-by-not-making-crucial-moves-are-you-affected-the-sun","status":"publish","type":"post","link":"https:\/\/geels.net\/beauty\/universal-credit-warning-as-thousands-face-losing-benefits-worth-578-by-not-making-crucial-moves-are-you-affected-the-sun\/","title":{"rendered":"Universal Credit warning as thousands face losing benefits worth \u00a3578 by not making crucial moves – are you affected? | The Sun"},"content":{"rendered":"

THOUSANDS of households are at risk of losing benefits worth hundreds of pounds by not making crucial moves. <\/p>\n

Nearly a third (28%) of tax credit claimants have had their benefits stopped because they have not claimed Universal Credit, according to new research. <\/p>\n

<\/p>\n

It comes as millions of people on "legacy benefits" will be moving to Universal Credit by the end of the year. <\/p>\n

The transfer, known as managed migration, began in May last year and households are being contacted by the government asking them to apply for Universal Credit. <\/p>\n

But only two thirds of people who were sent a migration notice between November last year and March this year made a claim before the deadline, according to an analysis by Child Poverty Action Group (CPAG). <\/p>\n

You typically have three months to move across.<\/p>\n

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It means they could be missing out on Universal Credit payments as well as risk not getting the next \u00a3300 cost of living payment. <\/p>\n

If the proportion of those who haven't claimed continues, 140,000 households could have their benefits stopped. <\/p>\n

CPAG found that others believed they were not eligible for Universal Credit while several thought they didn't need to apply because they'd recently renewed their tax credits. <\/p>\n

In most cases, you will be better off following a move from legacy benefits to Universal Credit.<\/p>\n

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But you might not always, so it's worth waiting until you absolutely have to move.<\/p>\n

Where your Universal Credit payment is lower than your legacy benefits entitlement, you will usually be eligible for a top-up\u00a0payment known as Transitional Protection.<\/p>\n

This means your Universal Credit entitlement will be the same as your legacy benefit entitlement at the point you move.<\/p>\n

Alison Garnham, chief executive of Child Poverty Action Group, said: \u201cSomething is really wrong when 28% of people who have maintained a tax credit claim haven\u2019t gotten a Universal Credit claim off the ground.\u00a0 <\/p>\n

"And with the managed migration to Universal Credit set to continue apace, it\u2019s\u00a0desperately worrying that so many families are at risk of having their tax credits summarily stopped because they haven\u2019t got a UC award up and running.\u00a0\u00a0\u00a0<\/p>\n

"An alarm is ringing loud and clear for the DWP \u2013 unless it gets more help to the families it\u2019s migrating to UC, they could lose a financial lifeline."<\/p>\n

A DWP spokesperson told The Sun it alerts people three months before they need to move to Universal Credit and follow up with letters and texts. <\/p>\n

They added: "Evidence shows most tax credit claimants have been able to claim Universal Credit without the need for additional support.<\/p>\n

\u201cExtensions can be arranged for those who need more time to make a claim and support is available in local jobcentres and via a dedicated DWP helpline. <\/p>\n

"Benefits are only ever stopped as a last resort after multiple unsuccessful attempts to engage with claimants."<\/p>\n

For those who miss the deadline, there is a one-month "grace period" during which any Universal Credit claim is backdated and transitional protection can still be awarded.<\/p>\n

Issues with overpayments <\/h2>\n

The research comes as an excess of 800,000 households on Universal Credit received less money than they were expecting in 2022 because they had to pay back tax credit payments, reports the BBC. <\/p>\n

Overpayments could have been made as claimants on tax credits moved to Universal Credit.<\/p>\n

Some may have been from years ago and have only just come out of the woodwork because of the switch.<\/p>\n

At least 80,000 households owe over \u00a35,000 or more in tax credit overpayments – this will take years to pay off. <\/p>\n

Their monthly benefits will have been reduced by up to 25% in order to pay back the debt and more people are set to go onto the same scheme in September.<\/p>\n

Now campaigners fear more people will face benefit deductions because of tax credits they didn't know about.<\/p>\n

A Freedom of Information request submitted by the BBC found the Department for Work and Pensions (DWP) has to take back more than \u00a31.5billion in overpaid tax credits.<\/p>\n

Both Universal Credit and tax credit payments vary depending on you're circumstances.<\/p>\n

But if you did get tax credits and weren't meant to or were overpaid, you could get 25% less in Universal Credit payments. <\/p>\n

For example, if you're single and aged under 25, then you'll usually get \u00a3292.11 a month from the DWP. <\/p>\n

But if you have to pay back tax credits, then that could be reduced to as little as \u00a3217.11 – that's a \u00a375 (25%) difference.<\/p>\n

For a couple over 25 who get \u00a3578.77 and need to pay back tax credit payments, they could get only \u00a3434.08.<\/p>\n

Of course, this depends on how much you owe as you may not see a cut of 25%.<\/p>\n

An HMRC spokesperson said: \u201cWe have well-established processes to help individuals manage repayment of tax credit debt, and we\u2019re committed to supporting those who are struggling with repayments.<\/p>\n

\u201cUniversal Credit deductions help protect claimants from enforcement actions such as eviction, ensure priority debts such as child maintenance are paid, and recover taxpayers\u2019 money when overpayments are made."<\/p>\n

How do I check if I overpaid tax credits?<\/h2>\n

The tax credits office will write to tell you how much you owe and how to repay the money. <\/p>\n

The money will then be taken from future Universal Credit payments.<\/p>\n

If you don't think you owe money but are being told you do, you can challenge it by calling the HMRC helpline on 0345 300 3900.<\/p>\n

How do I claim Universal Credit and how much can I get?<\/h2>\n

You can claim for Universal Credit online via the gov.uk website. <\/p>\n

You'll need to create an account and provide information on your financial situation.<\/p>\n

You must complete your claim within 28 days of creating your account or you'll have to start again. <\/p>\n

Everyone who is accepted on Universal Credit will be entitled to a Standard Allowance:<\/p>\n