DWP change for anyone moving to Universal Credit as claimants risk losing £4,130 if they don't act

The Department for Work and Pensions (DWP) has launched a new tool to make it easier for people to switch over to Universal Credit, after thousands of benefit claimants missed out on their payments during the last 'managed migration.'

There are still two million people claiming legacy benefits, such as Employment Support Allowance or tax credits, who will be moved over to the new system in the next year. During the last 'migration' to Universal Credit, there were 31,460 households that failed to make the move to the new system - losing an average £4130 each.

With a new web page to direct people to make the change over to Universal Credit, the ‘Move to Universal Credit’ website, it is hoped that fewer people will drop out of the system and more will continue with their claims. The DWP is set to ramp up its migration campaign over the next year, as benefits bosses set their sights on the next major phase of the move over to Universal Credit, with a planned national advertising push to make people aware of the move to the new system.

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The new website replaces the DWP's 'Understanding Universal Credit' page and offers essential information for claimants who have received, or are due to receive, their Managed Migration letter. This letter will have a deadline for when any legacy benefits will end, and when you need to apply for Universal Credit by, as the migration is not automatic.

The government had originally set itself the deadline of completing this migration by this year, but due to pandemic pressures, this deadline was pushed back repeatedly. It is now the aim of the DWP to completely finish the move over to Universal Credit by 2029 - though most people are forecast to have completed the move by March 2025.

Who is likely to get a Migration Notice this year?

The people who are likely to get a Migration Notice letter from this month are those claiming the following legacy benefits:

• Tax Credits with Housing Benefit

• Income Support only

• Income Support with Tax Credits

• Income Support with Housing Benefit

From June, people claiming just Housing Benefit will start receiving letters. From July, this will expand to include those claiming Income-related ESA with Child Tax Credits. Then, in August, those on pension age Tax Credits will receive their notices.

Income-based Jobseekers Allowance will begin migration in September, with those on just ESA and ESA with Housing Benefit will be notified at an unspecified date.

DWP guidance on GOV.UK warns: “It is important that you do not do anything until you receive your letter. You will not be moved automatically. Once you’ve received your Universal Credit Migration Notice letter, you’ll need to make a claim for Universal Credit to continue to get financial support. There will be a deadline in your letter.

“This is three months from the date the letter was sent out. Your current benefits will end as soon as you submit your claim for Universal Credit and you will not be able to go back to your existing benefit once you have claimed.”