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The second in a series of blogs introducing Universal Credit (UC) . Here we look at聽the latest timetable for the gradual roll out of UC , When am I affected by UC? Are all new claims for UC now? How will I switch to UC - the two types of migration? When do I actually have to switch to UC?聽What is the extra protection for the severe disability premium?聽

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Welcome back to Part 2 of this series of blogs聽 blog looking at Universal Credit (UC).

In Part 1, we looked at what Universal Credit (UC) is, the six "legacy benefits" that UC eventually replaces,聽why UC is deliberately intended to be rather different, how UC聽 will have some affect for people of 鈥減ension age鈥澛�

Here in Part 2 - we look at the gradual timetable for claiming UC and what that means for both those who might be seeking income-related assistance for the first time and those who are already getting one of the six "legacy benefits" that UC will eventually replace entirely.聽 There are two different ways of moving over to UC and we look at the major difference that how you switch makes. As a result the DWP has been in the Courts over one big potential loss that could be relevant to many people affected by cancer. So we will take a look at the additional protections that have come out of that.聽

We then get onto Universal Credit proper itself: How do I claim UC? What happens next? How do I get paid UC? And some key differences in the way UC works for people who are too unwell to work and people who are taking time out as carers? We will explore some of the practicalities and pitfalls for people affected by cancer in a little more detail聽 a further blog.

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The latest timetable for UC

There have been many planned timetables . Early teething troubles meant several changes to the plan but all insisting that UC would have been fully rolled out by October 2017. However it became clear that the first IT system was not going to go much further and the whole project came under a recue mission, involving starting again from scratch/ Timetables were abandoned until the things were "good and ready" .聽Regardless of the timings,聽聽UC has stuck to three main phases in rolling out聽UC. These are listed below along with their implications for people affected by cancer:

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Phase 1: an interim "Live Service UC"聽 open to聽jobseekers only

This started in聽all parts of the UK -聽except聽N. ireland 鈥� from聽April 2013. Originally planned to be rolled out by April 2014, the聽聽"accelerated roll out of Live Service UC鈥�聽 took place between聽聽Feb 2015 and March 2016. 聽

• "Live Service" UC could only be claimed by聽people who were unemployed; i.e who were聽available for, and actively seeking, work. You also had to have fairly straightforward circumstances that the system could cope with.
• the computer was only used to make the claim. All further contact was by traditional phone calls and letters.
• this phase had little impact on people affected by cancer, unless you happened to be聽a UC jobseeker when cancer came in your life. At that point, the DWP liked people to stay with UC, but you were free to switch over to "legacy benefits" instead. Some were better off staying with UC, some were better off switching.聽

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Phase 2: the "transition" to "Full Service" Uiversal Credit.聽聽

The new IT system, allowed the gradual聽introduction of Full Service UC, where UC claims were open to almost everyone who might claim it, while new applications for "legacy benefits" were mostly closed down. This mainly took place between October聽2017 and December 2018.聽 In N.Ireland, UC came appeared for the first time as Full Service UC.聽As each area strted - or聽 transitioned over to -聽 Full Service UC 聽it meant that:聽

• that UC opened up to all groups who might claim it, including those affected by cancer who might be claiming as too unwell to work, as carers or as聽聽workers on a low incomes.聽
• at the same time, the "legacy benefits" closed their doors to new claims in most cases
• the new computer is not just for claiming. You carry on with an online account聽 for much of your ongoing business with UC :聽to keep in touch with UC, report changes, send documents, see your monthly statements etc
• those who were on Live Service UC switched over to the new system. The last person switched by April 2019
• those already getting a "legacy benefit" stay as they are. Unless they聽either聽choose聽to claim UC instead聽or聽have a change of circumstances of a kind that needs a new claim under the legacy system. As in most cases, you cannot make such a new claim, you claim UC instead. This is聽called a聽"natural migration".聽聽Do get advice聽before聽 making a UC claim, whether off your own bat or whether you are told you now have to do so. You may do better under UC,聽you may do worse, but once done there is聽no going back聽聽"once on UC, you stay on UC"聽.聽 So you need to look before you leap and double check tofficial advice that you have to switch, as it may not always be correct.聽
• If you are a winner in the UC sums, then you may want to go for it straigtaway. But if you are a "loser" in the switchover games, then you do not usually get any protection from the losses. in this phase.聽

So phase 2 has made Universal Credit much more relevant to people affected by cancer. It will usually be where you make a new claim for means tested benefits if you are of "working age". Older people stay with Pension Credit (PC) right through these phases and after UC is rolled out, apart from the big change for mixed age couples mentioned in Part 1.聽

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A firebreak until Phase 3聽

This is where we are now . This "firebreak" is聽

• partly to test the聽system under a steady load of new claims coming in, before adding the pressure of moving people over from "legacy benefits" to UC under Phase 3.聽聽
• but this quieter time is also when the DWP planned to make some changes to open up UC fully to all the groups intended. It has also been a time when they have come under pressure to make some unplanned improvements.聽

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Phase 3 鈥� Managed Migration from legacy benefits over to UC聽.聽

This is when DWP will start contacting everyone on legacy benefits, requiring them to claim UC instead.聽

• This has sort of started from聽聽July 2019,聽聽but only as a limited pilot聽 in the Harrogate area. The pilot is to trial聽out different ways of easing some perhaps very vulnerable people over to UC, to make the process as painless as possible and not to leave聽anyone behind.聽Only after a pilot has proved successful -聽and lessons learned for the plans ahead -聽will聽 Parliament approve聽the powers for the main migration.聽
• Phase 3 proper is now expected to start in late 2020 and the DWP hope to complete this by December 2023. As a precaution, HMRC are keeping tax credit capacity open until 2025聽and the end of 2025
• If you lose out in a聽"managed migration"聽you will get聽"transitional protection"聽to cushion that drop聽

Once the last person has left the 鈥渓egacy benefits鈥� building, the lights will be turned off and legacy benefits will be abolished. However, currently only 2 million聽out of UC鈥檚 eventual caseload of 7.5 million are on UC, so legacy benefits -聽and any聽changes within those benefits 鈥� will聽remain important for a while yet.

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So when will I get to meet Universal Credit?聽

The fact that all areas now operate Full Service UC means that:聽

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for entirely new claims for "working age" means tested benefits:聽

• you will claim Universal Credit rather than one or more legacy benefits聽
• the only exception is that if you live in designated supported accomodation or temporary accommodation, then you will still claim Housing Benefit (HB for the rent, rather than doing this through your UC claim. This is because UC is not able to deal with the speed and flexibility essentil to keep these kinds of accomodation going.
• there is no longer a bar for larger families,聽but there is on -for some people already getting a "legacy benefit" .聽

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If you are already getting a legacy benefit:聽

• nothing changes immediately; you stay with that benefit for the time being聽聽
• You are free to claim UC instead at any time聽- but do get advice first. You may do better under UC but want to make the switch as smoothly as possible. But you may also do worse. At the moment there is no protection against any losses, and there is no way to switch back if you have switched unwisely.
• At some point though, you will have move over to UC. This will happen in one of聽two聽ways of聽"migrating"聽over to UC, and which one applies can make a rel difference to the amount you will get under UC.
• only one of those ways is in operation at the moment and there is some confusion around whether you need to swap to UC if circumstances change. You do not always have to swap when you are asked to by benefits officials. They may well be right, but not always. Read on and get advice.

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The two types of "migration" to Universal Credit (UC)

This 鈥渕igration鈥� to UC can happen in one of two ways:

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鈥渘atural migration鈥澛�

This is when聽certain聽changes of聽a circumstances occur聽that would have needed a new claim under the old "legacy benefits" system. Because you can鈥檛 usually make such a new聽claim you 鈥渘aturally migrate鈥� to UC,聽by claiming UC instead.聽

However, many changes would聽not聽need聽a new claim and can be sorted out by an adjustment within your current benefit.聽These "natural聽migrations" have been happening since your area became Full Service UC and will keep doing so right up until everyone has moved over to UC

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鈥� managed migration鈥澛�

these will be where DWP聽write to you setting a date for you to switch over to UC. These have only just started happening聽, but only聽in a pilot area iin Harrogate聽from 24th July聽2019. Once the pilot is evaluated,聽聽it will then聽be up to MPs聽 to grant the聽powers聽 - or require changes first - for the Department of Work and Pension (DWP)聽to press on across the UK. The DWP are currently saying they anticipate starting this process in late 2020 and aim to finish it by the end of 2023.聽 聽

Which one will apply for you, depends on which comes your way first.聽 鈥淣atural migrations鈥� have rather a head start . Indeed, the DWP聽have long estimated that, as a result of managed聽migration being held back until it is well tested and proven, many more聽people will actually switch by a natural migration. In fact now it is going to be the majority that switch to UC that way.

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Does it matter which way i switch?

Given that you will need to switch at some point, does it really matter how? The answer is聽鈥淥h, yes, it very well might聽鈥� . And the reason why, is summed up in two words of jargon:聽鈥渢ransitional protection鈥�.聽Managed Migrations聽come聽飞颈迟丑听补诲诲别诲听鈥渢ransitional protection鈥�聽 -聽for those who might lose out under UC rates-聽聽聽while Natural Migrations聽do not.

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What is "transitional protection"?聽

Inevitably, even at times when聽no overall cuts are intended in switching people to a new benefit,聽聽some people聽鈥渨颈苍"聽under the new way of doing the聽sums and some people聽鈥渓辞蝉别鈥�聽. The time-honoured precedent 鈥� until now 鈥� is that transitional protection means that聽聽鈥渘o-one loses out at the point of change鈥�.聽Normally then:

• "Winners"聽under the new sums -聽 get any extra amounts straightaway. For them,聽聽the challeng of UC is getting used to its different and new ways of doing benefits.聽聽With preparation for these changes, they might well聽want to opt into UC early,聽聽rather than wait until they are called.
• "Losers"聽in the sums game - get an extra聽鈥渢ransitional element鈥�聽that tops up the聽聽amount the standard UC sums would give you to the level you were getting under the聽under the old "legacy benefits". So, UC would,聽in its first monthly payment, match the monthly equivalent i.e. what you had in your last month under the "legacy benefits".聽
• However, you are frozen at this rate - with no annual increases -聽until聽the normal UC rates catch up. So over time transitional protection oftens the drop down to the new rates by iphasing it in gradually. You don't experience a drop straightaway, but little by little the value of your benefit gets eaten away.聽

Under UC, there are three main limits on the extent of this transitional protection:

• it's not just annual increases that nibble away at that "transitional element". Any increase in entitlement - apart from increased help with childcare in work - will eat into that transitional element聽
• there are quite a few ways that you can lose that transitional element.聽
• And anyone who volunteers to swich over or goes through a natural migration to UC does not get any transitional prtection in the first place. If you lose in the sums, you will drop straight down to the standard UC rate.聽

A natural migration, then could be rather bad news, whether you do so, because:

• you felt like switching anyway, but hadn鈥檛 realised you might lose out; or
• were encouraged to switch over now by over enthusiasm or being mistakenly told you have to switch聽a too enthusiastic staff member at DWP; or
• had a change in circumstances 鈥� whether avoidable or not 鈥� that聽does聽mean that you need to switch to UC.

The main point is that once you have switched to UC, you cannot switch back . So if you know that you are going to lose out, you ideally want to hang on where you are, if at all possible,聽until you can have a "managed migration",聽聽that聽will聽come聽with that very important transitional protection.

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What changes of circumstances cause a natural migration?

This is an area of some confusion. Some local DWP managers have been telling staff and stakeholders that "Any change - even a change of phone number causes a natural migration to UC" .聽It does not.聽聽

The golden rule is: Would the change of circumstances mean that you would need to make a new claim under the old system? . If it does then it may well mean you hve to switch - but see below. If a new claim wouldnt be necessary than you do not have to switch. For example:聽

• Janet needs is living in a private rented flat when the added medical points from her cancer means that she is offered a Housing Association property in the same area. Everyting may be changing - address, phone number, landlord - but this can all be handled within her existing Housing Benefit (HB) claim. She does not have to switch to UC
• John has moved back to be near his friends and family. He has his own place and claims HB from the local council. A new treatment is offered but he has to be near the hospital in London, so John moves. He now has to claim HB from a new local council there and he cannot usually do that. So normally this means a natural migration to UC . UC takes over not only help with rent but any other means tested benefits that John gets.聽

So the key is whether the move requires a new claim or not. However, what looks like a new claim, isn't necessarily a new claim:

• Ali is getting old style聽Contributory Employment and Support Allowance聽because he is too unwell to work following a cancer diagnosis. He doesn't get any top up yet from Income-related ESA. His Benefits Advisor, helps him claim Personal Independence Payment (PIP) as well. As a result 3 months later, Ali gets a backdated award of PIP. He is now entitled to an extra premium in the sums for Income-related ESA. At first he thinks he can't have it, as this looks like a new claim. But ESA is all one benefit, so adding on some Income-related ESA is adding an extra part to his current claim, not making a new claim.聽
• Bethan is a lone parent recovering from cancer treatment. She has been getting Child Tax Credit for her son Lachlan right through her treatment. She is now ready to start part time work and to come off her Income-related ESA. She is looking for "in work" support from Working Tax Credit instead. Again this looks like a new claim. But as with ESA the two tax credits are part of one common claim. So Bethan can have the WTC part added on to her existing Child Tax Credit.聽

厂辞:听

• natural migration is only triggered if you would need to make a new claim (but see below for an important exception)聽.聽
• Many small changes and som rather big ones -聽such as moving house in the same area - can all be sorted within an existing claim.聽
• And what might look like a new claim - to add on Income-related ESA or get the other tax credit when you are getting one -聽聽isn't technically a new claim.聽

There are, then, times when you might wrongly think you have to switch or be told by a benefits official that you have to when you do not.

If in doubt, get advice first. If you stand to gain from a switch it doesn't matter. But if you stand to lose, then you will lose straightaway. - with no protection and no going back. After much hurrumphing that staff could ever make such a mistake, the DWP have promised to compensate anyone who was misadvised by their staff and lost as a result.聽

An added protection for many people with cancer

One particular area of concern relevant to people with a聽cancer diagnosis, centres around an extra amount within legacy benefits called the聽鈥渟evere disability premium鈥� (SDP).聽 Across the UK -聽and across many different聽health conditions -聽 some 500,000 people get this extra premium within one or more of their聽legacy benefits. And that includes many 爱神传媒 Centre visitors. And they stood to lose significantly聽

So, do check whether you are one of them. You can find out more about the SDP premium - and who may or may not get it - in the blogs about the legacy means tested benefits 鈥� see in the list of links 聽below. The simplest question then is聽"Am聽I getting an SDP?"聽, but the next question might be聽鈥淚 see that I am not, but should聽I be? 鈥溌�

Do check聽both聽out with a Benefits Advisor, if you are in any doubt. Many people have missed out on the little bit of extra paperwork needed to get聽that useful premium added to e.g their聽Income-related ESA. If so, that can be sorted while you are still on your聽聽legacy benefit, giving you some very useful extra money for now. And also some extra protections come the switch over to Universal Credit.

The problem is that Universal Credit has no direct equivalent to the SDP or indeed the other two disability premiums in legacy benefits. The loss from switching over to UC without any transitional protection can vary from 拢185 to 拢280 a month if you are single and into the 拢500s a month if you are in a couple where you can both get an SDP

And that is exactly what happened to a brave, real life, "John" and 爱神传媒 Centre visitor. He moved back to London to receive specialist treatment, lost some 拢42 a week in a correct "natural migration" and was upset for both himself and others. So he was put in touch with a leading firm of solicitors who took the DWP to Court...and won.聽

The very different way "John" would have been treated under a managed migration and had he switched under聽a natural migration amounted to unlawful disability discrimination. The judge was scathing and the dwp were keen to appeal, but did agree to implement the judgement. And that has resulted in聽two key changes for those getting a "severe disability premium" :聽聽聽

• From 16th January 2019,聽聽you cannot claim UC听耻苍迟颈濒听you can be offered a 鈥渕anaged migration鈥� (with that important transitional protection). So, if your circumstances change and you would need to make a new claim under legacy benefits,聽 you do that rather than claim UC.聽
• Those involved in the court case stayed on UC but were compensated in full.
• The DWP were going to announce compensation for everyone else who had switched to UC and lost out before 16th January alongside the rules for managed migrations and how transitional protection works
• Ironically in a document that explained how to to do the sums, what could be seen as their first sum didn't add up. So it was back to Court
• A new set of sums does a bit better but still does not cover the full loss. The DWP are paying out on this, but it will be going back to the Courts聽

So,聽聽if you are getting a "severe disability premium" (SDP) within your legacy benefits you cannot claim UC for now. If you need to make a new claim because of a change in circumstances - then you can still claimn SDP you cannot claim UC for now and if circumstances change so that you can still make new claims under the聽聽鈥渓egacy benefits鈥� , then you can do just that. For the 10,000 or so that had already switched and lost out, compensation you may get compensation. However, a surprising amount of effort is being put into not quite paying you the full amount, but we await the latest Court judgement on this.聽

This protection only applies to the severe disability premium. You are still at risk of losing聽any other amounts for disability: such as the "disability premium" (within IS and HB)聽or the "enhanced disability premium" (within all except tax credits)聽and the adult "disability elements" in Working Tax Credit.聽

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Next Time

In Part Three we move on from the complications around whether to claim UC or not and when to do so. Things get a little simpler as we look at: How to go about claiming UC? When you will get a first payment? and What help you can get while you wait for that first payment?聽

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Further reading and links聽

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In this series:

UC4 - How does UC deal with sickness from work and carers?聽

UC5 -聽 The sums:聽How much UC might I get?

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Other relevant blogs:

Means teted benefits - a series looking at the legacy benefits - starting here