You won't be moved to Universal Credit automatically. You'll receive a Migration Notice letter asking you to claim Universal Credit within three months from the date on the letter. If you move over to Universal Credit from tax credits because you’ve received a Migration Notice, any savings over £16,000 won't affect your eligibility for Universal Credit for 12 assessment periods (about 12 months).
After then, the normal Universal Credit savings rules will apply.
If your circumstances change, you might be asked to switch to Universal Credit from Working Tax Credit. For example, if you:
start working less than 16 hours a week
were on Working Tax Credit and become sick
have a child
start renting a property, especially if it’s in a new local authority area.
The amount of Universal Credit you are paid could be more or less than the benefits you get now. The way savings are counted are different than the rules for tax credits. If you have savings of more than £16,000 you won't qualify for Universal Credit. And if you have savings of over £6,000 the amount you get could be affected.
It's important to get specialist benefits advice before you claim Universal Credit if you think this will affect you.
Your Universal Credit payment will also adjust month by month if the amount you earn goes up or down. This should make it easier for you to accept short-term work or take on more hours. If you earn less during one month, your Universal Credit should go up to make up for the shortfall in earnings. There are also no limits to the number of hours you have to work, as there are with Working Tax Credit. If your working hours aren’t the same from month to month, it can mean you might need to budget more carefully now.
For the DWP to work out how much Universal Credit you should get, they need to know how much you’ve earned in the past month. Either you or your employer need to tell the DWP how much you’ve earned. This is so you don’t get too much or too little Universal Credit.