Households receiving six legacy benefits that will be replaced by Universal Credit have been issued a warning after thousands of people had their payments removed.
New government figures show that 284,660 benefit claimants lost their benefits for failing to switch to Universal Credit within a significant three-month period.
Two million legacy benefit claimants are gradually transitioning to Universal Credit under a process known as managed migration.
Universal Credit was created to replace legacy benefits and began operating in November 2022 after a successful pilot in July 2019.
As part of the process, eligible households receiving legacy benefits, including tax credits, are sent ‘migration notices’ in the post telling them how to transition to Universal Credit, as it is not automatic.
It is vital that households apply for Universal Credit within three months of receiving their managed migration letter.
Failure to do so may result in suspension of benefits.
Since July 2022, the Department for Work and Pensions (DWP) has sent out almost 1.14 million migration notices.
However, according to the latest figures from the DWP, 284,660 people lost their benefits after failing to act on migration notices received between July 2022 and June 2024.
Since then, some 623,310 people have successfully applied for Universal Credit and a further 232,830 are still in the process of transitioning.
Michael Clarke, information programme director at anti-poverty charity Turn2us, said: “Too many people are unable to transition to Universal Credit after receiving a migration notice.
“Benefits are often a lifeline for the people we work with, and this loss of support could have serious consequences for their wellbeing.
“Many of those still claiming legacy benefits have complex needs and may lack digital access and support to manage their benefits.
“The DWP must provide everyone with the appropriate time, accessible information and personalised support they need to make the transition to Universal Credit.”
Experts have previously warned that managed migration poses a risk to vulnerable people who risk losing money.
Chief executives of charities including Mind, The Trussell Trust, Turn2Us and the Money and Mental Health Policy Institute said in 2022 that around 700,000 people with mental health problems, learning disabilities and dementia could struggle to take part in the process.
More than 20 organisations have called on the government to halt controlled migration to fix flaws in the system that could leave those at risk without access.
A DWP spokesperson said: “We are committed to ensuring all customers receive the support they need from our staff and services.
“The department has a wide range of support available to all people, particularly those who are vulnerable.”
What is managed migration?
ADVICE from Ayla Ozmen, policy and campaigns director at anti-poverty charity Z2K.
The DWP is suspending so-called ‘legacy benefits’ for people of working age.
This means you will not be able to claim benefits such as Employment and Income Support, Income Support, Tax Credits or Housing Benefit (unless you are in temporary accommodation or supported housing).
Instead, you will need to claim Universal Credit.
The DWP is sending everyone currently receiving these benefits a letter called a ‘migration notice’, giving them three months to claim Universal Credit.
If you don’t claim or ask for more time from the DWP, your legacy benefits could stop, even if you don’t get Universal Credit either.
That means you may not have enough money to live on and risk running up debt on big bills like rent.
If you wait too late to claim Universal Credit, you won’t get the difference “reimbursed” either.
And you might also miss something called a transition element.
Some people, including many disabled people, receive less money from Universal Credit than from inherited benefits.
The transitional element means you don’t face a sudden drop when you move to Universal Credit under managed migration, but it reduces over time.
But if you ignore your migration notice and then apply for Universal Credit, it’s treated as a new claim, so you don’t get any transitional element.
PROGRESS IN MANAGED MIGRATION
In January, the government announced the number of immigration notices it plans to send out over the next financial year.
Prior to this date, the focus was on sending migration notices to households requesting tax credits only.
However, 110,000 applicants for income support and another 120,000 applicants for housing tax credits began receiving their letters in April.
In June, more than 100,000 applicants were contacted who were only receiving housing benefits.
In July, more than 90,000 people claiming Employment and Support Benefit (ESA) and Child Tax Credits were asked to change their beneficiary.
Meanwhile, 20,000 applicants for unemployment benefit (JSA) will be contacted starting in September.
The Sun previously reported that in August, those claiming tax credits who are over state pension age will be asked to apply for Universal Credit or pension credit.
It was originally planned that those applying only for the income-related ESA would not be moved until 2028.
However, the DWP has put forward plans to move these households onto Universal Credit by the end of 2025.
From September 2024, 800,000 households will start receiving letters explaining how to move from ESA to Universal Credit.
HELP TO CLAIM UNIVERSAL CREDIT
In addition to benefit calculators, anyone moving from tax credits to Universal Credit can find help in a number of ways.
You can visit your local jobcentre by searching find-your-nearest-jobcentre.dwp.gov.uk/.
There is also a free service called Citizen’s Advice Help to Claim:
- England: 0800 144 8 444
- Scotland: 0800 023 2581
- Wales: 08000 241 220
You can also get help online from advisers at citizensadvice.org.uk/about-us/contact-us/contact-us/help-to-claim/.
Will I be better off with Universal Credit?
Around 1.4 million people receiving legacy benefits will be better off after switching to Universal Credit, the government says.
Another 300,000 people would see no change to their payments, while around 900,000 would be worse off on Universal Credit.
Of these, around 600,000 are expected to receive top-up payments if they move under managed migration, so they do not lose the cash immediately.
Most of them (around 400,000) apply for the Employment Support Benefit (ESA).
It is estimated that around 100,000 of them receive tax credits, while it is estimated that less than 50,000 of them receive other inherited benefits.
Some examples of who may be eligible for less Universal Credit according to the government include:
- Households receiving ESA and the Severe Disability Premium and Enhanced Disability Premium
- Households with the lowest additional contribution of disabled children to inherited benefits
- Self-employed households that are subject to the Minimum Income Floor after the 12-month grace period has ended
- Working households who worked a specific number of hours (for example, a single parent who worked 16 hours and claimed work tax credits)
- Households receiving tax credits with savings of more than £6,000 (and up to £16,000)
But if they don’t make the change in the future, they risk missing out on future benefit increases and seeing their payouts frozen.
Those who move voluntarily and are worse off will not receive these supplementary payments and could lose money.
Those who miss the deadline and file a claim later may also not get this temporary protection.
The clock starts counting down three months from the date of the first letter, and reminders are sent via mail and text messages.
After this, there is a one-month grace period, during which any claim to Universal Credit is backdated and transitional protection may still be granted.
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