Timings of payments when migrating from legacy benefits

starlight33
starlight33 Online Community Member Posts: 34 Contributor
edited December 2024 in Universal Credit (UC)

HI. Does it make a difference what day in the month the form is submitted in terms of payments and deductions on the 1st UC payment. If ESA IR and CB is paid every 2 weeks and a payment is due on 30th of ESA. Is it better to submit the UC form on 30th of the month or earlier in the month say beginning, middle or end. Ideally looking at around 23 to tie in with DD. The original deadline is 1st Feb. Heard that when you submit the form in the month has an effect on the 1st UC payment in terms of a reduction in the amount. Is this correct?

Also when ESA CB is paid separately to UC do the dates of payment for ESA stay the same as now or do they alter the payment date. Thanks

Comments

  • Kimmy87
    Kimmy87 Online Community Member Posts: 1,844 Championing
    edited December 2024

    When you submit the form doesn't have any bearing on how much you get paid with the first payment.

    After you apply for UC your first payment will be 5 weeks later.

    I myself wanted to be paid at the beginning of the month, so I applied on the 24th my payment date is the 2nd.

    Payment dates for ESA CB remain the same. It will change automatically to New Style ESA.

    You'll probably get a letter mentioning work coach, medical evidence etc. Don't panic, these are generic letters assuming it's a new application and not a transfer from CB ESA. Most of it won't apply to you.

    You will need an appointment to agree commitments. This is a formality your only commitment will be to keep them informed of any changes. If a face to face is booked you can request a telephone appointment as a reasonable adjustment.

    You will receive £276.40 a fortnight NS ESA, and the deduction from UC is £598.86. This looks wrong only because ESA is a weekly benefit and UC monthly. There are 4.3 weeks in a month.

  • poppy123456
    poppy123456 Online Community Member Posts: 62,725 Championing

    Your CB ESA will continue as normal but it will revert to New Style ESA automatically. Your payments will be £276.40/fortnight. The deduction from UC will be £598.86/month and it will always be that amount. It will seem like it's a higher amount than what you receive but it's not. ESA is a weekly benefit and UC is monthly and there's 4.3 weeks in a month, not 4 weeks. To work out the monthly deduction you times the weekly amount by 52 then divide by 12.

    There will also be 1 month a year where you will receive 3 ESA payments but the deduction from UC will be the same as always.

    Your ESA payment dates and day should remain the same as always.

    IR ESA and HB will continue for 2 weeks once a claim for UC has been submitted. Many people find claiming UC just after their ESA payment. You should then be entitled to 1 further IR ESA after that.

    If you claim UC on 23rd of the month then your monthly assessment periods will be 23rd to 22nd of every month. Your payment date will be 29th of every month, unless payment date falls on a weekend on bank holiday and then you will receive your money on the last working day before.

    You also said the following… I heard that when you submit the form in the month has an effect on the 1st UC payment in terms of a reduction in the amount. Is this correct?

    No, that's not correct. You will still be entitled to your maximum UC entitlement minus any deductions for things like your ESA and any potential earnings you may have. UC is a monthly benefit paid 1 month in arrears so you will always receive 1 months money.

    Your first UC payment will be about 5 weeks after you submit your claim. You can ask for an advance payment but this needs to be repaid back and your future UC payments will be reduced.

  • starlight33
    starlight33 Online Community Member Posts: 34 Contributor

    Thanks. Was a little confused. So just the ESA deduction in this case and in SG.