Hundreds of thousands of benefit claimants have had their payments stopped in recent years, the Department for Work and Pensions (DWP) has revealed, as it continues to overhaul the universal credit system.
Official statistics show that 356,521 households in the UK have had their benefits closed due to failing to claim universal credit after being invited to.
This means a loss of payments averaging over £1,000 a month, for failing to respond to the “migration notice” that the DWP has sent to most households still on “legacy benefits”.
These include tax credits, income support, jobseeker’s allowance, employment and support allowance, and housing benefit. The government is aiming to complete the migration of all of these benefits to universal credit by the end of March 2026.
Of the 2.3 million households that have been sent a migration notice so far, 1.9 million have successfully migrated. Around 10,000 are still undergoing the migration process, which started in July 2022.
While anyone who has their legacy benefits closed can later apply to universal credit, they will not be guaranteed the same transitional protection. This ensures that all people who undertake the DWP’s managed migration process will not see their total payments decrease as a result.
However, the payments will also not increase annually in line with inflation as in previous years, instead staying the same until they are equivalent to universal credit levels.
Anyone who receives a migration letter has three months to make a universal credit claim. If no reply is received within 11 weeks, the DWP says it will intervene with an “enhanced support journey” which could involve letters and even home visits.
Welfare experts continue to advise any benefit claimant who receives a letter to act in good time to ensure they do not miss out.
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Conor Lawlor, a benefit specialist at Turn2Us, said: “If someone gets a managed migration letter now, they should make a claim for universal credit before the deadline in their letter to ensure they get transitional protection.
“They should already be going through the enhanced support journey, so the DWP will be in touch with them if there’s no response following a notice being issued. If they need additional support with their claim, they should use the Turn2us find an adviser tool.”
Research from the DWP released this week found that some of the key reasons that people choose not to claim after receiving a letter are confusion about eligibility requirements, believing they were earning too much, and feeling the process was too much effort.
Some also believed they had too much in savings as, unlike with legacy benefits, no claimant with over £16,000 in savings can claim universal credit. However, the DWP has said this rule will be disregarded for 12 months for anyone who undergoes managed migration.
A DWP spokesperson said: “It is important people respond to the letter asking them to make the move to universal credit in order to continue receiving benefits.
“Help is at hand for those making the move, including our dedicated helpline, guidance on gov.uk, and the Citizens Advice’s free and independent help to claim service.
“We’re also giving extra help to people moving from employment and support allowance, such as phone calls and additional guidance.”