Is ESA being replaced with Universal credit?&If so does this mean they will be swapping people over?

Bpositive91

I found this online and also a few other sources

Universal Credit is replacing means-tested benefits, including income-related Employment & Support Allowance (ESA). The benefits Universal Credit replaces are known as 'legacy benefits'. The DWP is gradually moving people on legacy benefits - including ESA - to Universal Credit.10 Nov 2021

also this

Income-related ESA is being replaced by Universal Credit. Universal Credit is a payment for people over 18 but under State Pension age who are on a low income or out of work.


If people are already on ESA does that mean they will be transferred to universal credit or is this only for new claims ?

many thanks 

poppy123456

Yes UC has replaced the old legacy benefits, which is why it’s no longer possible to claim them. 

The process to move people across is called managed migration but it hasn’t yet started because of the pandemic.
When the time comes (which could be a few years at least) you will be invited to claim it, which you must do within a certain time period. 

Your existing ESA award at the time will be honoured in UC and you will receive a transitional protection which means you won’t be any worse off. 

calcotti

Managed migration is set to resume later this year and  targeted to be completed by the end of 2024. (Of course every target to date has been missed.)

androgynous

poppy123456 said:

Yes UC has replaced the old legacy benefits, which is why it’s no longer possible to claim them. 

The process to move people across is called managed migration but it hasn’t yet started because of the pandemic.
When the time comes (which could be a few years at least) you will be invited to claim it, which you must do within a certain time period. 

Your existing ESA award at the time will be honoured in UC and you will receive a transitional protection which means you won’t be any worse off. 

It simply isn't true that you won't be any worse off on UC. Not all existing ESA awards at the time will be honoured even with the TP. There are winners and there are losers and generally the losers are those who are single and 'Severely Disabled'.


Take the example of an over 25 single person, both in the Support Group or LWRCA in receipt of the EDP and SDP. Two identical cases on ESA and UC. These are 2021/2022 current rates.

On ESA they would be receiving WEEKLY:-

Personal Allowance                           £74.70
Enhanced Disability Premiuim           £17.20
Severe Disability Premium                 £67.30
Support Group                                  £39.40

Weekly Total £198.60   Monthly Total £851.14 (based on 30 days in a month).

On Universal Credit they would be receiving MONTHLY :-

Standard Allowance                           £324.84
LCWRA Element                                £343.63
Transitional Protection                      £120.00

Monthly Total  £788.47    

That is still a shortfall of approximately £62.67, hence the legal cases. It's the same amount regardless of how many days are in the month. The ESA individual amounts are weekly.

The Transitional Protection means your UC payment overall remains static until the TP has been eroded. It doesn't take long, only a year or two. Any increases or changes to UC trigger that amount being deducted from your TP but no overall increase in your UC. 

All you will be left with is the Standard Allowance and the LCWRA if still eligible, at the blink of an eye. £688.47 a month.

There have been legal cases ongoing for 6 years regarding this issue and the DWP have lost 4 times. They are now intending to appeal for a 5th time. They can't appeal forever but they can still appeal long enough to bring hardship to those who need financial support more than ever.

poppy123456

Those that have to claim UC now because of change of circumstances will be worse off if they claim the SDP, even with the SDP transitional protection. 

This isn’t managed migration, which is what my comment referred to if you read it again.
As advised once managed migration starts no one should be any worse off because of the transitional protection. Yes it does erode over time, just like it did when people transferred from Incapacity Benefit. 

calcotti

androgynous said:

It simply isn't true that you won't be any worse off on UC. Not all existing ESA awards at the time will be honoured even with the TP. 

The transitional protection for managed migration which is the subject of this thread operates differently to the SDP transitional protection for natural migration that you have used as an example.

For transitional protection under managed migration the transitional element is not a fixed amount and will be set so that total UC matched the legacy benefits being lost at the point of transfer. In your example the transitional element would be £182.67.

It is true that this then effectively freezes the benefit amount until such time as the transitional element has been eroded and that claimants in that situation will be worse off over time than had the legacy benefits continued.

It is true that at the point of transfer a claimant under managed migration will not be worse off on UC, as stated by poppy.

In your example for natural migration it is also not true true to say that the transitional element can, if circumstances remain unchanged, be eroded in such a way that the UC payable is less than the amount at the point of transition.

It couldn’t go from Standard Allowance, LCWRA Element and SDPTE Total  £788.47 to Standard Allowance and the LCWRA only totalling £668.47 a month. The transitional element would only be fully eroded when the total of the other elements has reached £788.47

calcotti

woodbine said:

Am I right in thinking anyone just on ESA cont. won't be moved to UC ?

That’s correct. UC replaces means tested benefits, as quoted in the opening post. (I think we’ve discussed this previously.)