LRD guides and handbook April 2018

State benefits and tax credits 2018

Chapter 1

Universal Credit roll-out


[ch 1: pages 11-12]

Universal Credit (UC) is being introduced in stages across Great Britain by postcode area. The new benefit was originally due to be phased in over four years between 2013 and 2017, but it is running way behind schedule and is not now expected to be fully implemented until 2022. 


The website: Entitledto (www.entitledto.co.uk) explains that, from the beginning of 2018, whether claimants apply for UC or existing benefits usually depends on where they live. 


When a postcode moves to UC, claimants can no longer make a new claim for benefits like tax credits or Housing Benefit. 


Those making a new claim for benefits, and those who are already claiming benefits but have a change in their circumstances, may have to claim UC at some point before December 2018 when the roll-out for new claims is due to cover the whole of the UK.


The exceptions to this rule are families with three or more children making a new benefit claim. They can continue to make new claims for existing benefits and tax credits until at least February 2019.


Once the full roll-out for new claims is complete, existing benefit claimants who have not had a change in circumstances will be moved over to UC at some point between July 2019 and March 2022. This is known as “managed migration”.


Anyone who has a change of circumstance before that point will be moved earlier. This is known as “natural migration”. 


UC full service areas are where UC is available to all types of claimants. You can find out if you are in a UC full service area using a postcode checker at: https://universalcreditinfo.net.


In live service areas, you cannot make a new claim to UC, but may be able to claim other benefits instead.


Eventually all UC claims will be on the full service and you will have a UC online account.


Calls for the government to ‘pause and fix’ Universal Credit 


Unions, charities, campaign groups, advice centres, the Labour Party and others have been calling on the government to “pause and fix” UC. General union Unite held a national day of action against UC on 2 December 2017, calling on the government to “stop and fix” the benefit before rolling it out further. The public and commercial PCS union says the roll-out of UC should be suspended immediately and says: “A review of the entire project — from its impact on claimants to systemic failings, IT problems and pressures on staff — is needed before any decision is made as to whether it is fit to continue.”


It says there are problems with poor training, too few staff, poor IT systems and stress for its members. 


The union has criticised the acceleration of the roll-out, pointing out that, until July 2017, DWP rolled out UC to new claimants at a rate of five jobcentres a month. From July, it was rolled out to 29 jobcentres, with plans to increase to 50 job centres a month up to January 2018, then up to 60 after that. However, in the November 2017 Budget, it was announced that the roll-out would slow from February 2018 to 10 jobcentres a month for February to April, before increasing to 41 in May, then 60 a month with a pause in August. As a result, the full roll-out is due to be complete by the end of 2018.


The number of people on UC as of 14 December 2017 was 700,000. Forty two per cent (300,000) were in employment. By 2022 over seven million households will receive UC and a Citizens Advice analysis found that over half (54%) of these will be working households.