Millions of benefit claimants have until next month to switch to Universal Credit or risk losing payments.
The benefit system is undergoing major changes, with Universal Credit set to replace tax credits for working-age households.
Everyone on Tax Credits should have already received a Migration Notice letter inviting them to claim Universal Credit.
Those who miss their deadline risk losing vital financial support.
A total of 355,940 of individuals who were sent migration notices did not claim Universal Credit and have had their legacy benefit claims closed, according to thee latest DWP figures.
The DWP warned: “Tax Credits are closing on 5 April 2025, and customers must respond to their migration notices by their deadline date to continue to receive financial support from the Government.”
Migration Notice letters give recipients three months to apply for Universal Credit.
To continue receiving financial support, claimants must apply by the deadline date specified in their letter
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To continue receiving financial support, claimants must apply by the deadline date specified in their letter. Those who haven’t received a Migration Notice should visit the Universal Credit guidance website immediately.
Universal Credit eligibility requires applicants to live in the UK, be aged between 18 and state pension age, and have £16,000 or less in savings and investments.
Those moving from Tax Credits benefit from ‘transitional protection’, allowing them to claim even with savings over £16,000 for 12 assessment periods.
After this 12-month ‘transitional capital disregard’, normal eligibility rules apply. Joint claims must be made for households, even if one partner isn’t eligible. Full-time students in higher education can also receive a ‘transitional student disregard’ until their course ends.
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After this 12-month ‘transitional capital disregard’, normal eligibility rules apply
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Missing the deadline could result in a complete loss of financial support. Those unable to claim by their deadline should contact the Universal Credit Migration Notice Helpline as soon as possible on 0800 169 0328.
The DWP is providing extra support by opening this helpline on Saturday, April 5 – the final day of Tax Credits.
Extensions may be granted for those with a “good reason” but must be requested before the deadline date.
Applications made after the deadline with savings over £16,000 will be rejected. If recipients decide not to claim Universal Credit after receiving the migration notice, their Tax Credits will end on April 5.
Housing benefit will continue for those who don’t switch, but all other benefits will cease. The changes to the Tax Credit system will not affect Personal Independence Payments (PIP).
A total of 355,940 of individuals have had their legacy benefit claims closed for not answering the letters on time
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Those living in supported or temporary accommodation will continue to receive housing benefit regardless.
The Government is phasing out several individual benefits including housing benefit, income support and jobseeker’s allowance to bring more financial support under Universal Credit.
Universal Credit payment amounts vary based on individual circumstances. The maximum monthly allowance is £316.98 for a single person over 25. Couples over 25 can receive up to £628.10 per month.
The DWP continues to increase the number of migration notices being sent to customers receiving Employment and Support Allowance.
All ESA notices are due to be sent by the end of 2025. This marks the final stage of the benefits overhaul bringing government financial support under Universal Credit.