The Department for Work and Pensions has warned people claiming six benefits they could be worse off under Universal Credit. As part of the managed migration system, the DWP is moving people on so-called legacy benefits onto the all-in-one payment.
Housing Benefit, Income-related Employment and Support Allowance (ESA), Income-based Jobseeker’s Allowance (JSA), Child Tax Credit, Working Tax Credit, and Income Support are all impacted by the shake-up to the DWP Universal Credit system.
DWP aims to have all claimants on Universal Credit by March 2026. People on the six legacy benefits will receive a “migration notice” by post when it’s their turn to switch, giving them a three-month deadline to apply for Universal Credit.
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If they don’t apply within this period, their current benefits will stop, the DWP has warned. But before deciding to move to Universal Credit early, it’s vital to consider the implications carefully – because once you’ve switched, there’s no option to revert to the previous benefits.
The government initially committed that there would be no cash losers at the point of moving to Universal Credit (assuming no change of circumstances) for those who are part of the managed migration.
But in reality, the rules that have been introduced do not provide that 100% guarantee for every case but it does provide a mechanism for DWP to add a temporary additional element to the Universal Credit award to smooth the transition to the new benefit in most of the cases where someone would be worse off when they migrate.
Those who start to claim it by choice or because of a change of circumstances (natural or voluntary) will not have access to any transitional protection – the one exception being for certain claimants entitled to a severe disability premium in their legacy benefits (income support, JSA and ESA