DWP warning as thousands to receive letter which could see benefits stopped
Thousands of people will see their current benefit payments stop in the next few months as the Department for Work and Pensions (DWP) pushes through with its Managed Migration plan.
The DWP is currently working to move those claiming legacy benefits onto Universal Credit. The department has been phasing out the older benefits over the last few years and restarted the move after a brief pause during the Covid pandemic. At the time of the managed migration restarting, around 2.6million people were still claiming old-style legacy benefits in the UK.
In an update to Parliament, employment minister Jo Churchill said the DWP's 2024-25 plans were to issue "migration notices" to people claiming Income Support and Tax Credits with Housing Benefit from April this year. From June, people claiming Employment Support Allowance with Chil Tax Credit will receive notices from July, and those claiming Jobseekers Allowance will see them in September.
From August, the DWP will also start contacting people who claim Tax Credits and are over the state pension age. Ms Churchill added: "Households will be asked to apply for either Universal Credit or Pension Credit, depending on their circumstances."
Universal Credit is replacing the following six benefits in the UK:
8 money changes coming in February including Universal Credit and passport fees
- Working Tax Credit
- Child Tax Credit
- Income-based Jobseeker’s Allowance (JSA)
- Income Support
- Income-related Employment and Support Allowance (ESA)
- Housing Benefit (renting)
Those who are affected will receive a "Migration Notice" and once they do, they will need to make their claim for Universal Credit within three months or risk seeing their benefit payments stop. Once the application is made, claimants should receive their first payment after five weeks and will continue to receive Universal Credit payments going forward. If you claim Tax Credits your entitlement will end as soon as you claim Universal Credit.
The DWP focused on notifying households claiming Tax Credits only during 2023 and has continued to so far this year. Ms Churchill said: "This activity is progressing well, and we remain on track to notify over 500,000 Tax Credit only households of the need to claim Universal Credit by the end of March 2024. Furthermore, by February 2024 a month earlier than originally anticipated, ‘Move to Universal Credit’ will be underway across all Jobcentre districts within Great Britain."
You do not have to wait until you receive a Migration Notice to swap to Universal Credit. However, before you do so, claimants are advised to check whether they would be better off before moving. The DWP says the majority of people will be better off on Universal Credit however some people could be worse off - around 300,000 benefit claimants will see no change.
Top up payments will be made available to people who will be worse off and you can check how the move will affect you using an online benefit calculator. You can make your claim for Universal Credit online, but you can also use the Migration Notice helpline on 0800 169 0328 if necessary - you can also ask your local Job Centre for help with your claim.
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