2025 marks an ambitious year for the Department for Work and Pensions, as not only is it undertaking the new fraud investigation powers being granted by the Labour government as well as tightening eligibility criteria, it’ll also be swiftly building on the momentum around the Universal Credit migration.
Throughout 2024, thousands of benefit claimants have moved from legacy benefits like Tax Credits to Universal Credit as part of the managed migration process. Next up on the DWP’s radar are the thousands who claim Income Support and well over two million Brits who claim Housing Benefit.
This process starts with migration notices, with the DWP issuing thousands since June to people who claim combinations of Housing Benefit and Income Support with other legacy benefits like Tax Credits. While most of 2024 saw the department focused on migrating Tax Credit recipients to Universal Credit, it’s readjusting its focus to other legacy benefits for 2025 as 2.1 million households are still to make the move.
Since the managed migration process started, the DWP has released findings from benefit recipient feedback and has adjusted accordingly. Most recently, the department admitted the migration notices had been “overwhelming” recipients and so it has streamlined the information in the letter to assure its impact is understood.
Once a claimant receives this notice, they need to either make their own Universal Credit claim on the gov.uk site, through the dedicated phone line or they will be referred to support that can help them manage their application. When their claim for Universal Credit has been made their legacy benefits will end, but if they apply before the deadline indicated on their migration notice they will be entitled to a transitional element.
This will ensure their benefit payments don’t suddenly drop or outright stop during the transition to Universal Credit, this will end or start decreasing once they receive their first Universal Credit payment. They’ll also receive transitional protection which could increase the amount of Universal Credit they get if they would be drastically impacted by the migration.
The latest data from the DWP revealed people receiving Income Support or Employment and Support Allowance are more likely to ask for help when making their Universal Credit claim. Whereas people on Housing Benefits and other legacy benefits are more likely to claim Universal Credit than those receiving Tax Credits alone.
If claimants ignore their migration notices and don’t make a Universal Credit claim, their legacy benefits will stop. Currently, the DWP is aiming to send out the final migration notices next December and start closing legacy benefits by March 2026.