UC migration, do I get backdated?

MartBear

We are aiming to sign on to UC tomorrow. From what our letter says, we will get no payments for 5 weeks, as the ESA will stop immediately. Only tax credits will continue and they stop in 2 weeks. So we'll miss out on 2 ESA payments, and 3 tax credits. As well as housing benefit and council tax.

When UC starts, we will get our first payment which will cover the bills for the next month... But do we get anything backdated for the previous 5 weeks? We've been lent some money from family to help make it through the 5 weeks without payment, but would like to be able to pay them back.

If it takes longer than the 5 weeks, we also run the risk of going into debt to pay bills.... So would need that paid back.

I'm not expecting to hit an issue with our money. We're pretty sensible with money, we have no choice but to be, just want to know that since we're being forcibly moved onto a different benefit, we're not going to suddenly see ourselves with a loss of 5 weeks payment

Spoonie_Turtle

UC is paid in arrears so your first payment will be for the first month of your claim.

Your ESA should have a two week run-on I thought.  Same with Housing Benefit.
Council Tax Support is through your council, not UC.

poppy12345

Once you submit your claim for UC your tax credits will stop completely. Income Related ESA continues for 2 weeks and then stops, same applies to housing benefit if you claim that.

If any part of your ESA is contributions based this will continue but be deducted in full from any UC entitlement. 

You first UC payment will be just under 5 weeks after you submitted your claim. Unless payment date falls on a weekend or a bank holiday and then you’ll receive payment on the last working day before.

For example, if you submitted your claim today then your assessment periods will be 4th to 3rd of every month and your first payment will be 10th October. That payment will cover the period between 4th Sept to 3rd October which is 1 month because it’s paid 1 month in arrears.

You can ask for an advance payment but this needs to be repaid back and your future payments will be reduced until it’s paid back. 

There’s no loss of payments here and your ESA continues for 2 weeks. 

MartBear

Ah ok.

It seems like a loss to me, if tax credits stop and ESA stops in two weeks.

I think it's because of how we managed money. If we had no helps, let's say We get paid ESA and tax credits, just as an example let's say that's £400. That £400 covers the bills for the next two weeks, then we get paid again, and once more it covers the next two weeks.

Now, if we get no money, then when we do get it in 5 weeks. We'll be paying the bills that should have been paid during those 5 weeks. We pay gas and electric weekly, so we'll have had to find money for that. Food etc, now we don't have that money. We won't have TV or phones, water, etc. apart from the one ESA payments which will cover some of it. For one month, we'd be going into debt. Then when we get paid the 4 weeks in arrears, that payment would then pay off what we had to borrow, and then for the next 4 weeks, we're digging the hole again.

I understand there is help, I think I'm happy now, just explaining why to me it seems we miss out on a month of payments. Because that first payment should really pay our October bills based on how we pay normally, but would instead be paying September because we'd not have any money that month.

I've since spoken with UCs migration team (I really struggle with phonecalls, but to be honest, they were amazing and answered quickly too). I shall now be migrating next week, when we get our ESA payment. As we will have that, plus one more two weeks later, which to our way of paying just leaves us short of tax credits, and carers allowance. Money borrowed from family should easily carry that shorted amount, and then we can pay that back over time. I've also been informed that if I ask, we can change our payments to fortnightly instead of monthly, which works out so much better for us that I will be doing that after the first payment.

So yeah, I think I'm comfortable with the process now, and would just like to say thank you to those who read and responded. Thanks so much for your input and advice where given. I have anxiety through the roof, but between you here and the lovely lady at UC migration, I feel pretty calm about it all now. 

poppy12345

ESA is a weekly benefit paid fortnightly in arrears. UC is a monthly benefit paid monthly in arrears. You are not missing out because at the end of each assessment period you get paid for that assessment period, which is 1 month.

You just have to learn to budget a little more due to the monthly benefits, rather than fortnightly and weekly, if your tax credits are paid weekly. 

8dayweek

I might have misconstrued what you meant, but just to confirm Carers Allowance won’t stop, so you’ll also have that. 

MartBear

8dayweek said:

I might have misconstrued what you meant, but just to confirm Carers Allowance won’t stop, so you’ll also have that. 

Oh that's great, I must have misread that. I checked it multiple times too, I could have sworn it was affected because it was for my wife and as her claim was under review for the 5 weeks that id not get it. 

Oh that's even more help. Thanks again everyone. 

M25

And for those in Scotland you can get paid roughly fortnightly if you wish https://www.gov.uk/universal-credit/how-youre-paid#:~:text=When you're paid twice,amount for your second month.