Around 318,000 individuals have had their benefit payments halted after ignoring specific instructions from the Department for Work and Pensions (DWP).
This has affected a variety of claims, and the DWP has issued a warning that two benefits will be permanently discontinued in just a few weeks, with four others set to be phased out during the financial year 2025-2026. The final rollout stages of Universal Credit will mark the end of Working Tax Credit, Child Tax Credit, Income Support, income-based Jobseeker’s Allowance, income-related Employment and Support Allowance, and Housing Benefit.
The first two of these legacy benefits will cease when the tax credits system, managed by HMRC, shuts down at the end of March 2025. The DWP is dispatching ‘migration notice’ letters to households, instructing them to follow specific steps to claim Universal Credit instead of their current payments.
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This must be done within three months unless an extension is requested. The most recent DWP statistics reveal that approximately 875,000 people have successfully transitioned to Universal Credit, 318,000 had their benefits terminated when they disregarded instructions to switch, and 164,000 claims are still being processed.
The majority of those whose claim was closed because they did not transition to Universal Credit were receiving both Working Tax Credit and Child Tax Credit (almost 220,000 claimants), while 64,000 were on Working Tax Credit only and another 23,000 solely received Child Tax Credit. Around 6,000 individuals who had their legacy benefits ceased were recipients of both types of tax credits and Housing Benefit.
Just over 1,000 were receiving a mix of Child Tax Credit, Housing Benefit and Income Support, reports Birmingham Live. Those on income-related Employment and Support Allowance (ESA) – a benefit for those with disabilities and long-term health conditions that limit their ability to work – constitute the final group of people who will be asked to transition.
Those receiving it alongside Child Tax Credit and/or Housing Benefit are already being sent letters and figures indicate most have successfully made the switch so far. Just under 700 people who only receive ESA have been transferred to Universal Credit in a trial run before the process is accelerated from February so it can be completed by year’s end.
The DWP has confirmed the introduction of an ‘enhanced support journey’ for income-related ESA claimants who may require additional assistance to make a Universal Credit claim. This is provided after the standard three-month migration deadline has passed and includes extra phone contact and, if necessary, home visits.
The DWP has issued official guidance stating: “To continue receiving financial support you must claim Universal Credit by the deadline date given in your letter. If you cannot claim Universal Credit by the deadline date, you should contact the Universal Credit Migration Notice Helpline as soon as possible. You may be able to get more time to make a claim if you have a good reason. You must request this before your deadline date.
“On Universal Credit, most people will be entitled to the same amount they received from their previous benefits or more. If your circumstances change before you make your claim, this may affect the amount you get. Your Universal Credit payment is made up of a standard allowance and any extra amounts that apply to you, for example if you have children, a disability or health condition that prevents you from working, or need help paying your rent.”
“If the amount you’re entitled to on your existing benefits is more than you’ll get on Universal Credit, a top-up is available. This is called transitional protection. You can only get this additional amount if you have received a Migration Notice and claim by your deadline date.
“If your circumstances change after you’ve made your claim, any transitional protection you receive may stop.” The Universal Credit Migration Notice Helpline can be reached at 0800 169 0328, from 8am to 6pm, Monday to Friday.
Additionally, the Citizen Advice Help to Claim service is available with advisers on hand from 8am to 6pm, Monday to Friday on 0800 144 8444 in England, 0800 023 2581 in Scotland and 08000 241 220 in Wales.