UK households receiving six legacy benefits are being urged to take action after thousands had their payments stopped for not transitioning to Universal Credit ahead of their deadline. The Department for Work and Pensions (DWP) has revealed that more than 180,000 benefit claimants lost out by not making the switch in time.
The transition from legacy benefits to Universal Credit, known as managed migration, involves the DWP sending out-migration notices to inform claimants of the need to switch. Claimants have three months from the date of the notice to claim Universal Credit or risk losing their benefit entitlements.
Since March 2024, over 800,000 migration notices have been sent out. However, between July 2022 and March 2024, 184,120 people failed to make the switch and consequently lost their benefits.
Andy Wood, a tax expert, highlighted the significance of these numbers: “According to a recent update from the DWP, 824,050 individuals in 540,070 households received migration notices between July 2022 and March 2024 across England, Wales, and Scotland. The vast majority (821,430) were tax credit claimants.”
The transition to Universal Credit is replacing six legacy benefits, including Working Tax Credit, Child Tax Credit, Housing Benefit, income-related Employment and Support Allowance (ESA), Income Support, and income-based Jobseeker’s Allowance (JSA).
Wood provided a breakdown of the transition: “Of the 824,050 individuals issued migration notices between July 2022 and March 2024, 400,940 (49 per cent) have successfully transitioned to Universal Credit, with 60 per cent of those households receiving transitional protection to maintain their payment levels. An additional 238,990 (29 per cent) are still in the process of switching. Meanwhile, 184,120 individuals (22 per cent) have not transitioned and have had their legacy benefit claims closed.”
He stressed the urgent need for the DWP to adopt a more supportive approach: “The termination of benefits for 184,000 claimants highlights the critical need for a more empathetic and supportive approach in the Universal Credit rollout. Many of these individuals are likely facing significant challenges, and the DWP must prioritize their well-being over meeting migration targets. The primary goal should be ensuring that no one is left without essential support.”
The DWP’s management of the migration process has raised concerns, particularly for vulnerable individuals who may face significant hardships if they lose their benefits. The department is being urged to provide comprehensive support to ensure a smooth transition for all claimants.
Households affected by this transition are advised to respond promptly to migration notices and seek assistance if needed to avoid losing their benefits. For more information and support, claimants can visit the DWP website or contact their local Jobcentre Plus.
The DWP continues to work towards completing the transition to Universal Credit, with a focus on minimizing disruptions and ensuring that all claimants receive the support they need.
