Martin Lewis explains big Universal Credit change and if you’ll be better off

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Martin Lewis explains a big change coming at a profit for people – and whether they will get better.

About 2.6 million are still on old benefits like tax credits that are being replaced universal credit,

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Martin Lewis shares help for those on benefits set to move to Universal Credit

everyone at six so called inheritance benefit The government has said that it will be transferred to Universal Credit by the end of 2024.

Many people will move naturally through changes in circumstances during that time, for example if they have children or change jobs.

Anyone who hasn’t moved will eventually be invited under a process called managed migration.

it started at the beginning of the month With 500 people at two locations And gradually it will be rolled out more widely.

Universal Credit and benefits will be paid quickly - check your payment date
I'm a Profit Expert - How to Avoid Losing Cash From the New Universal Credit Rule

speaking on Martin Lewis money show, Money-saving expert answers audience question After he asked if they would be made worse by the move.

He said: “I believe 55% of them, according to government data, would be better off moving to Universal Credit, 35% would be worse off and the numbers could vary greatly.

“The people who would be in a better position are those working and paying rent, especially in cities that have elements of the high housing benefit type or that are on the top-end side of Universal Credit.

“Whose conditions will worsen may be people who are not making rent or are out of work.

“So, if you are in that category, your situation may get worse, but by the end of 2024 you will automatically relocate at some point and there is nothing you can do about it.”

But some people will be saved from losing cash in the short term.

Those who are not in a better position will receive transitional payments that increase the income on Universal Credit to the same amount as the inherited benefits.

But importantly you will not get this money if you choose to proceed universal credit Voluntarily – You must wait to be invited to move.

He cautioned that it is important for anyone moving forward to seek one-on-one advice.

He added: “It’s important to understand that when you make a request as soon as you make a request, you’re going to move and not change your mind.”

“So don’t even rely on online mileage calculators to check your status, go and get a one-to-one evaluation from a properly qualified free benefits specialist and if they tell you you’d be better off, you really Might want to apply for Universal Credit soon.

You should carefully consider what moving over means for your money, as you cannot go back once you are on Universal Credit.

We spoke to a mileage expert who explained how to get advice on the switch – Here’s what he explains on how to avoid losing cash.

checking your benefits

around Universal Cre will benefit 1.4 million peopledit and can fetch an additional £220 per month on average.

And about 900,000 wouldn’t be better And they must wait to be transferred so that they don’t miss out on cash.

According to the government’s estimates, there will be no change in the amount received for another 300,000 people.

Examples of people who may be entitled to less on Universal Credit, according to the government, include:

  • Families receiving ESA and Critical Disability Premium and Advanced Disability Premium
  • Families with children with the following disabilities are added on to inheritance benefits
  • Self-employed families who are subject to a minimum income floor after the 12-month grace period is over
  • working families who worked a certain number of hours (eg lonely
    Parents working 16 hours a day claim Working Tax Credit)
  • Tax credits for households with savings of more than £6,000 (and up to £16,000)

If you think your situation won’t get better, hold on and wait to move through managed migration.

You’ll get top up payments, known as transitional payments, so you don’t lose cash, but you won’t get them if you proceed voluntarily.

if you get one Critical Disability Premium (SDP) you may get paid extra The top of Universal Credit is known as a transitional element.

This is the case whether you move by yourself or through managed migration.

A free online mileage calculator can help you check but you should also ask for advice.

You can get them from charities like turn2us And entitled to,

Citizen Advice also has one Help with claiming service To support Universal Credit claims.

Martin also highlighted that while profits are not growing in line with inflation, earnings on benefits are shrinking for millions of Britons.

Inflation is currently 9% and last month’s growth Benefit payout was just 3.1%Squeezing the finances of millions.

Universal Credit typically increases in April based on the inflation rate of the previous November, along with other benefits.

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