DWPS Managed Migration rolls out July 2019 – Landlords are you ready?

by CARIDON LANDLORD SOLUTIONS

15:07 PM, 8th May 2019
About A year ago

DWPS Managed Migration rolls out July 2019 – Landlords are you ready?

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DWPS Managed Migration rolls out July 2019 – Landlords are you ready?

Managed Migration is due to roll out in July 2019 and it is important for us Landlords to understand how the process could affect our tenants. To date DWP have not announced the areas that they will first pilot the roll out, however when we find out the areas we will let you know!

What is managed migration?

Most Universal Credit claimants transition onto Universal Credit through a process called “natural migration”, this action usually occurs if:

  • They chose to make a claim for Universal Credit
  • There has been a change in their circumstances ending their Tax Credit claim
  • They need to make a claim for another benefit which has been replaced by Universal Credit which will result in their Tax Credit claim being terminated

However, those claimants that have not had any change of circumstances that would require them to claim Universal Credit or chose not to claim Universal Credit will eventually be moved across to Universal Credit by DWP/HMRC through a process called ‘managed migration’ as the tax credits system will cease to exist.

The government offers those who transition onto Universal Credit through managed migration transitional protection if they have not had any change in their circumstances, so that the claimant does not lose out financially.

When will managed migration happen?

In GB, DWP will begin to pilot the managed migration process from July 2019 to July 2020, moving 10,000 existing legacy benefit claimants across to Universal Credit. DWP’s intention is to take remaining other legacy claimants through the managed migration process between November 2020 and December 2023.

Further reading please read:

Draft Regulations
www.legislation.gov.uk/ukdsi/2019/9780111178317/contents

Contact Sherrelle for offline Universal Credit advice

Sherrelle is an independent consultant and is recommended by Property118 for landlords who require professional advice and assistance in regards to dealing with Universal credit related matters

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Comments

Bill irvine

9:04 AM, 9th May 2019
About A year ago

Morning folks

Sherrelle's note is important if you're a landlord who accommodates Housing Benefit (LHA) tenants. "Managed Migration" heralds the start of the process of DWP instructing tenants and other "legacy benefit" (Income Support, JSA, ESA, Housing Benefit, Tax Credits) claimants to claim Universal Credit, instead of their current entitlement(s), including HB/LHA.

The process kicks off in Harrogate and will move to other, yet unannouced parts of GB, after July. Although, the initial project involves only 10,000 claimants, by December 2023 it's expected an additional 3 million will be added through this process.

In addition, "Natural Migration" (NM) continues, quite separately, adding around 180,000 new awards every month. DWP anticipates an additional 2 million claimants, through this process, by the end of 2019.

NM is normally caused by changes in claimants' circumstances (move to new district; become unemployed or incapable of work; youngest child turns 5; fail work capbility test etc) but can also involve DWP staff advising tenants to claim when there is no necessity to do so.

Many have discovered that by claiming UC they find themselves worse off and, at least, having to wait 5 -9 weeks for their first payment. Not suprisingly, these delays cause rent arrears and associated cash flow issues for landlords.

Every week that passes I'm contacted by PRS landlords who have experienced their first UC tenant. Few, if any, have been impressed by the way their tenant's case has been handled by DWP and are usually taken aback and totally frustrated by DWP's unwillingness to engage or respond to "direct payment" requests and are unsure about how best to contact DWP and/or prosecute complaints.
In contrast, those landlords that have already taken time to familiarise themselves with this new benefit are often able to navigate some of the many obstacles DWP construct to impede and frustrate contact and by doing so mitigate potential losses.

A couple of my clients have already successfully sued DWP in the Small Claims court for rental lossess, directly related to mistakes made by DWP in relation to APA awards, where DWP agreed to pay my client but then promptly paid the tenant(s) who, of course, mispent the award on other "priorities".

My advice to landlords involved in this niche area, is - get yourself educated on the key components of this benefit ASAP. Otherwise, you're likely to experience some of the financial pain that has already been reported and discussed on this helpful forum.

Bill Irvine

Mick Roberts

12:31 PM, 16th May 2019
About A year ago

Reply to the comment left by Bill Irvine at 09/05/2019 - 09:04
Apologies for my delay,

Not been on here for a while.

Ooh most Landlords won't know what's hit 'em once managed migration starts.

And why DWP won't talk to us Landlords who's big interest is keeping the tenant in their home, is beyond me.

We are getting a bit better here in Nottingham, but that's only cause I've got some VERY GOOD contacts within the local Job Centre which most Landlords aren't gonna' have.

And this 5 weeks wait is preposterous. Most people claiming UC are generally skint-That's why claiming it. And then to be told, Ooh we know u skint & no food in, but we still gonna' make u wait 5 weeks. But u can have an Advance Loan. Which will make u more skint every month than u normally would be.


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