Benefit payments have been stopped for around 318,000 people who ignored specific instructions from the Department for Work and Pensions. Many different types of claims have been affected, and the DWP has warned that two benefits will be scrapped for good just weeks from now, with four others to be phased out during the 2025-2026 financial year.
The rollout of Universal Credit will mean 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 stop when the tax credits system, administered by HMRC, closes down at the end of March 2025.
The DWP is sending ‘migration notice’ letters to households asking them to follow specific instructions to make a claim for Universal Credit instead of their existing payments. This must be done within three months unless someone requests an extension.
READ MORE:
The latest DWP statistics show that around 875,000 people have successfully moved across to Universal Credit, 318,000 had their benefits terminated when they ignored instructions to make the changeover, and 164,000 claims are still in progress. The majority of those whose claim was closed down when they did not swap over 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 in receipt of Child Tax Credit.
Around 6,000 people whose legacy benefits were stopped were on both types of tax credits plus Housing Benefit. Just over 1,000 were getting a combination of Child Tax Credit, Housing Benefit and Income Support.
Claimants 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 – make up the final wave of people who will be asked to move across. Those receiving it alongside Child Tax Credit and/or Housing Benefit are already being sent letters and figures show most have made the changeover successfully so far.
Just under 700 people who only get ESA have been transferred to Universal Credit in a trial run ahead of the process being stepped up from February so it can be completed by the end of the year. The DWP has confirmed it has introduced an ‘enhanced support journey’ for income-related ESA claimants who may need extra help to make a claim for Universal Credit. This is provided after the standard three-month migration deadline has passed and includes additional contact over the phone and, if necessary, home visits.
The DWP said in its official guidance: “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 is available on 0800 169 0328, between 8am and 6pm, Monday to Friday. Support is also available via the Citizen Advice Help to Claim service, with advisers available 8am to 6pm, Monday to Friday on 0800 144 8444 in England, 0800 023 2581 in Scotland and 08000 241 220 in Wales.
Get breaking news on BirminghamLive WhatsApp. Join our dedicated community for the latest updates. You can find out more in our Money Saving Newsletter, which is sent out daily with all the updates you need to know on pensions, PIP, Universal Credit, benefits, finances, bills, and shopping discounts.