Big changes are coming to benefits as the DWP rolls out its plan to migrate to Universal Credit. Will you keep your payments or face a financial shock? Find out who is entitled to top-up and why a crucial letter could make all the difference.
DWP Reveals Who Wins Big in the Universal Credit Switch—and Who Doesn’t
By Chourouk Derkaoui
Published on 20 November 2024 08:45
Thousands of people across the UK are gearing up for a financial shake-up as the Department for Work and Pensions (DWP) ramps up its migration to Universal Credit. If you're on legacy benefits, here's why this change could hit your wallet harder than you'd think—or leave you better off if you play your cards right.
Universal Credit: The Biggest Benefit Overhaul in Decades
The DWP is ditching six existing benefits—income-based Jobseeker's Allowance, Employment and Support Allowance, Housing Benefit, Income Support, Working Tax Credit, and Child Tax Credit—in favour of the streamlined Universal Credit.
Tax credits are set to be scrapped as early as April 2025, and the countdown has begun. But here’s the kicker: the way you're transferred could determine whether your payments stay stable, increase, or plummet.
Who Gets Protected—and Who Doesn't
There are three pathways to Universal Credit, but don't assume you’re safe from financial losses:
- Managed Migration
If you get a Migration Notice letter, you qualify for a top-up payment, called transitional protection, to keep your payments at the same level. But there's a catch: you must claim by the deadline in the letter. Miss it, and you lose the safety net. - Voluntary Migration
Tempted to switch early? Think twice! Those who voluntarily migrate don’t get transitional protection. Once you make the leap, there’s no turning back. The DWP warns: make sure you're better off before you apply. - Natural Migration
Experience a major life change like moving house or having a baby? That could force you into Universal Credit without protection. If your payments drop, tough luck—there’s no extra help.
Are You Better Off Moving Early?
The DWP estimates 1.4 million households could boost their income by switching voluntarily. But beware: the legacy benefits system is complex, and comparing entitlements isn’t straightforward. Missteps could leave you worse off, with no way to return to your old benefits.
The DWP is urging claimants to use tools like independent benefit calculators or consult welfare advice services before making the jump.
What Happens If You Wait?
If you’re holding out for managed migration, you could secure transitional protection—but only under strict conditions. The DWP stresses that this top-up will vanish if your circumstances change after your move.
Here’s how it works:
- The transitional amount is calculated based on your previous benefits versus your new entitlement.
- It considers everything from your employment status to your savings and family situation.
- But if you move, get a new job, or face other changes, the extra payment disappears.
If you’re on tax credits, you can still switch to Universal Credit even with savings above the £16,000 limit. But after 12 months, the usual rules apply, meaning excess savings could disqualify you.
What Should You Do?
With thousands facing uncertainty, it’s critical to stay informed. If you receive a Migration Notice, don’t wait—get advice before the three-month deadline lapses.
Need help?
- Call the Universal Credit Migration Notice Helpline at 0800 169 0328 (Monday to Friday, 8am–6pm).
- Or reach out to the Citizens Advice Help to Claim service:
- England: 0800 144 8 444
- Scotland: 0800 023 2581
- Wales: 08000 241 220
Act now, or risk losing out—because when it comes to Universal Credit, timing is everything.