The Department for Work and Pensions (DWP) has issued an urgent three-month warning to thousands of claimants as their benefits could be phased out on April 5, 2025.
Thousands on legacy benefits must switch to Universal Credit when they receive their migration notice letter, with the DWP sending hundreds of thousands of these notices over the next year.
The change is part of the DWP’s managed migration plan, which aims to move all claimants of legacy benefits to Universal Credit by March 2026.
These include Child Tax Credits, Housing Benefit, Income-based Jobseeker’s Allowance, Income-related Employment and Support Allowance, Income Support, and Working Tax Credits.
Failure to act means thousands could lose their benefits.
The first legacy benefit to be stopped will be Tax Credits in April of this year. After this date, no current claims will be reissued anyone claiming now will need to act. The DWP planned to have sent all Tax Credit claimants a migration notice.
Failure to act means thousands could lose their benefits
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A recent DWP survey revealed significant confusion about the transition process, with many recipients at risk of losing their benefits if they fail to respond within three months of receiving their notice.
Those who miss their deadline date can still move to Universal Credit later, but they won’t receive important financial protections designed to prevent them from losing money.
The survey found that while 78 per cent of respondents claimed to know about Universal Credit, seven in 10 were unaware of transitional protection payments.
This protection is crucial for those who would receive less under Universal Credit than their current benefits.
For example, if someone receives £800 from Tax Credits but would only be entitled to £600 under Universal Credit, they can receive a £200 top-up to maintain their current level.
The survey revealed 91 per cent of participants had already made major financial decisions based on their tax credits ending, with over half cutting spending.
Many had turned to savings or additional work hours, while 28 per cent had relied on credit cards and overdrafts, and 23 per cent sought financial help from family and friends.
Sir Stephen Timms, social security and disability minister has urged immediate action, stating: “As we start the new year, families across the country are thinking about what’s next.
“With this in mind, I encourage everyone who has received a migration notice to act as quickly as possible and move onto Universal Credit.”
He emphasised the urgency of the situation, adding: “We know how quickly time can pass when you’re busy – and with just three months to go until Tax Credits close on April 5 – now is the time to respond to your Universal Credit migration notice.”
The migration process requires claimants to submit their Universal Credit application within three months of receiving their notice letter.
If recipients fail to act within this timeframe, their current benefits will be stopped completely. The DWP plans to send migration notices to all legacy benefit claimants by the end of this year.
The migration notice will detail the exact date one needs to make a claim.
Those needing assistance with their migration can contact the Universal Credit Migration Notice Helpline.
More information about the managed migration process is available on the gov.uk website.