Benefit claimants receiving Personal Independence Payment (PIP) as well as Employment and Support Allowance (ESA) need to be on “high alert” for an important letter from the Department for Work and Pensions (DWP).
Those who receive this combination of benefits could face suspension of their payments as the DWP prepares to shift recipients onto Universal Credit under the “managed migration” process, according to specialists.
The team at Spencer Churchill Claims has emphasised that “people claiming ESA alongside PIP should be on high alert”, cautioning that “if you’ve received a letter from the DWP since the start of September, it is vital that you act to make the transition to Universal Credit as soon as possible”.
Ignoring such correspondence could result in payments being ceased “just ahead of Christmas” the claims consultant warned, potentially triggering severe budgetary hardship.
Additionally, people must also look out for upcoming changes if they are receiving aid from any of the six “legacy” benefits, which include Income-based Jobseeker’s Allowance (JSA), Income-related Employment and Support Allowance (ESA), Income Support, Housing Benefit, Child Tax Credit (CTC), and Working Tax Credit (WTC), reports the Mirror.
The DWP is in the midst of transferring claimants from legacy benefits to Universal Credit, a process known as ‘managed migration’, which kicked off in 2022 and is set to wrap up by March 2025.
Spencer Churchill’s advisors continued: “It’s crucial for people on these benefits to pay attention to any letters from the DWP. You have three months from the date of your letter to make a claim, otherwise, you could lose your entitlements entirely.”
On Universal Credit, the advisors noted that most claimants will receive the same amount or more compared to their previous benefits. But this is “not guaranteed”, they warned. They explained: “If you are worse off under Universal Credit, you may be entitled to a top-up called transitional protection, which will cover the difference.
“However, this protection is only available if you respond to the DWP‘s Migration Notice in time and make your claim before the deadline. Any changes in circumstances could also impact how much you receive.
“The process of managed migration is already underway, and those affected by the changes need to ensure they act quickly. Failing to respond to the DWP letter within three months risks losing the support you’ve relied on.
“The sooner you make the switch, the sooner your current payments can be protected under Universal Credit, including any transitional protection that might apply.”
For those worried over potential cuts to their benefits, the experts reassured: “Transitional protection payments will continue until your Universal Credit matches what you were receiving on legacy benefits. However, this only applies if you claim by the deadline and meet the requirements. Acting now will safeguard your finances as you transition to the new system.”