Over 100,000 people set to lose benefits after DWP Universal Credit decision

Over 100,000 people are set to lose benefits under a Department for Work and Pensions (DWP) Universal Credit shake up. The DWP is shunting benefits claimants from 'legacy benefits' off their current payments and onto Universal Credit, a one-size-fits-all system, instead.

The so-called ‘managed migration’ process - which the DWP planned to complete by 2028 - has brought this forward in a bid to cut costs and the government intends to notify all old-style benefit claimants by December 2025.

The Canary today reported Citizens Advice (CA) have indicated that the migration process is leaving out around 25% of former claimants. It said that 20% of legacy claimants in their thirties haven’t completed the transition to Universal Credit.

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The Public Accounts Committee (PAC) warned: "DWP said it was not concerned that so far 21% of tax credits claimants had not transferred to Universal Credit when invited to do so, even though it has only limited assurance that people who did not switch over are not missing out on benefits they are entitled to.

PAC chair Meg Hillier MP concluded: "If the transition from legacy benefits to UC fails even an apparently small proportion of people, it will lead to real world misery for thousands. The DWP must make sure that people are not cast into financial hardship due to a bureaucratic change, and that robust support is in place for those vulnerable claimants who need it most."

The non-claim rate rises according to age. According to CA, the failure rate is 20% for people in their thirties and 22% for people in their forties as well as 27% for people in their fifties and 32% for people in their sixties or over.

CA warned: "This is a much higher rate than expected and has led the DWP to alter its financial forecasts to show savings of £5 billion between 2024 and 2029 as a result of people missing out on benefits they are entitled to. Because the migration dates have now been brought forward, this saving is likely to be made even more quickly."