Citizens Advice response to the House of Commons Public Accounts Committee inquiry on progress in implementing Universal Credit
Throughout 2023, Citizens Advice supported almost 7,500 people with issues around managed migration to Universal Credit. More than two-thirds of these cases were from September onwards as the managed migration rollout was scaled up. We also supported almost 6,000 people with natural or voluntary migration from legacy benefits to Universal Credit over this period.
In this submission, we focus on:
The general experience of Universal Credit and managed migration. The proportion of people failing to claim Universal Credit following a migration notice is alarmingly high, and there are anomalous elements of the migration process that cause unnecessary harm.
How managed migration is experienced by different groups. Some groups face greater risks than others, and many people claiming Universal Credit for the first time have high practical and emotional support needs.
The uncertainty around the transitional element. Uncertainty is a barrier to complete and accurate advice, and risks the accumulation of overpayment debt.
The growing deductions problem. Migration to Universal Credit will: (a) lead to legacy benefit overpayment debts being identified; and (b) require many claimants to accrue advance payment debt.
Citizens Advice recommends that the government:
As quickly as possible, completes their investigation into the higher than expected number of people not claiming Universal Credit by their migration notice deadline, and publish the results of this investigation.
Introduce stronger safeguards so that those who can least afford to lose benefit income, and/or are most likely to face difficulties making a Universal Credit claim, are able to access high-quality advice, and are supported to migrate successfully to Universal Credit.
Produces and publishes detailed guidance on how the transitional element is being calculated, and commits to writing off any overpayment debt that arises from erroneous calculations or changes to calculating methods.
Writes off legacy benefit overpayment debts identified at the point of migration to Universal Credit.
Develops an alternative to the benefit transfer advance loans that will be required for many claimants to bridge the wait between legacy benefit and Universal Credit payments.