Thousands cut off from £4,960 benefits in DWP Universal Credit move
Thousands on benefits will be cut off from £4,960 a year in a Universal Credit move. People will lose nearly £5,000 a year as the new Labour Party government pushes forward with its Universal Credit 'managed migration process' by March 2025.
More than 171,000 people on tax credits have had their benefits stopped after failing to move to Universal Credit. Anti-poverty charity Z2K data shows that 171,750 households receiving tax credits, who were sent migration notices between November 2022 and December 2023, had their benefits stopped.
This means a typical household has lost around £4,960 a year. A Z2K spokesperson said: "The total amount of benefits that the DWP has cut off for people who have missed their deadline for moving to universal credit has now jumped to over £850 million.
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"This is particularly concerning as we are fast approaching the point at which the government plans to start moving seriously ill and disabled people over to Universal Credit. We want to see the government slow down the move to universal credit to ensure that safeguards are in place so that no one is left without anything to live on.
"But in the meantime, if you receive a letter telling you to claim Universal Credit, you should seek advice immediately and make sure you submit the claim before the deadline." A DWP spokesperson said: "We are committed to ensuring all customers receive the support they need from our staff and services.
"The department has a wide range of support available to all individuals, particularly those who are vulnerable." Universal Credit is replacing six benefits under the old welfare system, commonly called legacy benefits. They are Working tax credit, Child tax credit and Income-based jobseeker's allowance as well as Income support, income-related employment and support allowance and Housing benefit.
If you're on any of these benefits now, you can choose to move over - but you might not be better off.