Thousands to have benefits axed after ignoring DWP letter 'three months ago'

James Rodger

2 July 2024 at 8:45 am·2-min read

Thousands could have payments stopped this month in a Department for Work and Pensions (DWP) and HMRC shake-up. The DWP is currently shifting people claiming older legacy-style benefits onto Universal Credit as part of a process called 'managed' migration.

In April, the benefits department sent out Migration Notices to people claiming Tax Credits alongside Housing Benefit. Those who received their notices in April will have to put in their claim within the month under a three month rule, as outlined in the DWP letters to households.

The number of people that DWP are sending migration notices to has been gradually increasing throughout 2023 and 2024 but their plans mean they are controlling the increase in numbers. From August 2024, DWP will start contacting Tax Credit claimants who have reached their state pension age.

They will invite them to claim Universal Credit or Pension Credit, depending on their circumstances. Tax credit only claimants, that is, those claiming tax credits but no other legacy benefits, join the managed migration exercise during 2023. By the end of the 2023/24 tax year, most will have migrated to Universal Credit, the all-in-one style benefit

Tax credit claimants who also claim any of the other legacy benefits (including ESA) will be selected for the managed migration mainly during 2024. People claiming other legacy benefits, but not ESA only or ESA plus housing benefit only, will also be selected for the managed migration exercise during 2024.

People claiming ESA only or ESA plus housing benefit (but not tax credits), will be selected for the managed migration exercise during 2028. By the end of the 2028/29 tax year, most will have migrated too. The government explained previously: "Eventually, all remaining legacy benefit claimants will be contacted by the DWP and told they must claim Universal Credit to continue to receive means-tested support."

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