An urgent benefits change is set to impact thousands of individuals across four key groups. The Department for Work and Pensions (DWP) has confirmed the final wave of letters regarding the transition to Universal Credit.
According to the DWP’s latest guidance, by the end of September, all remaining tax credit recipients of State Pension age, those on income-based Jobseeker’s Allowance, claimants receiving only income-related Employment and Support Allowance (ESA), and others on income-related ESA along with Housing Benefit should have been notified.
The change will affect hundreds of thousands of people, with the majority being ESA claimants. These benefit recipients were not due to switch to Universal Credit until 2028/2029, but this has been advanced by four years.
Most individuals in each of the four groups should have received Migration Notice letters by the end of September. However, the DWP emphasises that this timeline is merely a guide and there is no cause for concern if they have not yet been contacted.
The aim is to complete the process by December 2025, allowing all legacy benefits to be discontinued at the start of the next fiscal year, reports Birmingham Live.
Furthermore, some tax credit recipients of State Pension age will have been asked to transition to Pension Credit instead, with letters sent to this group in July.
According to DWP advice, claimants are instructed: “It is important that you do not do anything until you receive your letter. This is called a Universal Credit Migration Notice and it tells you when you need to move to Universal Credit.”
“You will not be moved automatically and you must claim Universal Credit by the deadline date given in your letter. The deadline date for applying is three months from the date the letter is sent out. Look out for your letter as ignoring it could even stop your payments.”
“If you have a question about claiming Universal Credit or have a problem getting online, call the number shown in your Universal Credit Migration Notice letter. If you currently receive tax credits, you’ll still need to claim by the date in your letter even if you’ve just renewed your tax credits.”
The DWP says you won’t have to move to Universal Credit if you only receive Housing Benefit and either you or you and your partner:
- are of State Pension age (66 years old or over)
- live in temporary accommodation provided by a council because you were homeless
- live in supported accommodation including refuges, hostels, extra care housing and some sheltered housing
Instead, they’ll keep receiving housing cost support via Housing Benefit.
Moreover, individuals receiving so-called new-style benefits, which are contributions-based, are also exempt from moving to Universal Credit. The new-style benefits specific to this case are New Style Employment and Support Allowance and New Style Jobseeker’s Allowance.
While you can choose to apply for Universal Credit concurrently with these benefits, there will be a deduction from your UC amount equivalent to your new-style benefit payment.