DWP set to give three-month benefit switch deadline to 90,000 claimants in July

David Bentley

28 June 2024 at 11:20 am·3-min read

Thousands of people are to be told to move from their old-style benefits to Universal Credit in July. The next stage of the DWP's Universal Credit rollout is set to begin, this time focusing on people claiming income-related Employment and Support Allowance (ESA) alongside Child Tax Credit.

The managed migration by the Department for Work and Pensions has so far been mainly targeting those who claim Working Tax Credit and/or Child Tax Credit. In April, Income Support claimants and those on tax credits coupled with Housing Benefit were also asked to transfer across.

Throughout June, people who only receive Housing Benefit are being invited to switch to Universal Credit. July will see the first wave of Employment and Support Allowance recipients making the move - this will be those who also receive Child Tax Credit. Around 90,000 people are to be sent letters telling them they have three months to transition to Universal Credit.

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The remaining 800,000 who receive ESA, either on its own or with Housing Benefit, are expected to be moved across between September 2024 and the end of December 2025, years earlier than their originally scheduled timeframe of 2028/2029. A trial run involving hundreds of these vulnerable claimants has been taking place in June to make sure any issues are resolved before the process ramps up in September.

The DWP said: "Many customers will be better off on Universal Credit compared to legacy benefits and we estimate around half of our ESA and ESA with Housing Benefit customers would receive over £100 a month more on Universal Credit. Customers will also be able to benefit from improved work incentives and enhanced labour market support for those who want it.

"Our current planning assumption is that we would begin notifying this group in September 2024, with the aim of notifying everyone to make the move by December 2025."

The expansion of Universal Credit to replace legacy benefits comes as it emerged that thousands of people on tax credits have failed to make the switch when asked to do so, meaning their existing payments are abruptly terminated with no going back. Anti-poverty charity Z2K says this is leaving people around £412.50 a month - or £4,950 a year - worse off.

Ayla Ozmen, director of policy and campaigns at Z2K, said: "The Department for Work and Pensions (DWP) has now cut off benefits worth over £500 million from people who have missed their deadline to move to Universal Credit.

"The DWP recently announced it would speed up plans for managed migration to UC, including bringing forward the migration of 800,000 seriously ill and disabled people on Employment and Support Allowance, so it's really critical that the next government gets this right and stops cutting off vital income."

Get breaking news on BirminghamLive WhatsApp. Join our dedicated community to get 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 Universal Credit, benefits, finances, bills and shopping discounts.

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