Many households are at risk of losing support as the government ramps up efforts to move claimants onto Universal Credit, leading to concerns about how this could affect communities in need.
Universal Credit Deadline: 318,000 Households at Risk of Benefit Cuts, DWP Warns
By Chourouk Derkaoui
Published on 23 November 2024 11:53
Universal Credit deadlines have led to over 318,000 households losing their benefits after failing to switch within the three-month time limit, prompting a warning.
In addition, hundreds of thousands of benefit claimants were cut off from essential support between July 2022 and June 2024 because they failed to respond to migration notices, according to data from the Department for Work and Pensions (DWP).
Ayla Ozmen, director of policy and campaigns at Z2K, said: "We're concerned to see that more people have had vital benefit payments stopped as part of the government's plan to move people on to Universal Credit."
Universal Credit Transition Overview
| Aspect | Details |
|---|---|
| Households Affected | Over 318,000 lost benefits due to inaction after receiving migration notices. |
| Program Deadline | Migration to Universal Credit must be completed by March 2026. |
| Migration Notices Issued | Approximately 1.4 million notices sent since July 2022. |
| Outcomes for Claimants | - 55% will be better off. - 35% will lose money. - Remaining claimants see no change. |
| Monthly Notices Issued | Increasing to 63,000 per month from February 2024. |
The DWP has rushed the process of transferring all former benefit claimants to Universal Credit. Additionally, Citizens Advice and Citizens Advice Scotland have received an extra £15 million to help claimants through this transition.
Dame Clare Moriarty, CEO of Citizens Advice, said: "Over the last five years, our specially trained advisers have supported thousands of people across Britain to navigate the move from old benefits to Universal Credit. We make our service as accessible as possible, offering phone, chat, and British Sign Language options, so we're there for people as they move over."
Legacy Benefits Being Replaced
- Working Tax Credit
- Child Tax Credit
- Income-based Jobseeker’s Allowance
- Income Support
- Income-related Employment and Support Allowance
- Housing Benefit
Urgent Action Needed
Claimants receive a migration notice and have three months to claim Universal Credit before their existing benefits cease. In the case of those who make the transition via the managed migration process, the DWP provides transitional payments to compensate for financial losses.
Sir Stephen Timms MP, Minister for Social Security and Disability, urged claimants to act quickly: "I want to encourage anyone receiving a migration notice over the coming months to act without delay to secure quick access to benefit entitlement."
The government plans to send out the migration notifications by December 2025 and finish the process by March 2026. Individuals thinking about switching to Universal Credit before getting a migration notification should do research because reverting to benefits will not be possible.