DWP warning as 318,000 households could have benefits cut by not doing one thing

Hundreds of thousands failed to respond to migration notices in a three-month window resulting in their benefits being stopped

A warning has been issued that 318,000 households could have their benefits cut after they failed to move on to Universal Credit.

Figures from Department for Work and Pensions (DWP) show from July 2022 to June 2024, hundreds of thousands failed to respond to migration notices in a three-month window. This means more than 318,000 households had their payments stopped because they did not move over.

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."

DWP has accelerated the transition of all claimants from older benefits which will be completed in March 2026. A £15million increase in support was introduced by the Universal Credit programme. It will help Citizens Advice and Citizens Advice Scotland continue supporting a move from legacy benefits.

Dame Clare Moriarty, chief executive 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."

More than a million people have made Universal Credit claims since 2019. Claimants receive a DWP migration notice and have three months to claim Universal Credit before their current benefits end. Working Tax Credit, Child Tax Credit, Income-based Jobseeker's Allowance, Income Support, Income-related Employment and Support Allowance, and Housing Benefit are being replaced by UNiversal Credit

Almost 1.4 million migration notices have been sent out to claimants since July 2022. An estimated 883,944 people have already claimed Universal Credit and 166,594 are still changing over. The DWP reckons 55 per cent of claimants will be betteroff and 35 per cent will lose money. Other claimants will not see any change.

Keir Starmer's government wants to increase the speed of migration notices and 63,000 notices will be issued each month from February next year. Sir Stephen Timms MP, Minister for Social Security and Disability said: "I want to encourage anyone receiving a migration notice over the coming months to act without delay to secure quick access to benefit entitlement."

Final notices will be be sent in early December 2025 before the programme closes in March 2026. It mainly affects income-related Employment and Support Allowance (ESA) The DWP hopes to formally close the Move to Universal Credit programme by the close of March 2025. Citizens Advice's Help is available from trained advisers to support new Universal Credit claims.

Those thinking of switching to Universal Credit before a migration notice is received should research their options as they cannot return to legacy benefits once moved. But those moved by the official "managed migration" process will a transition of payments every month if they are expected to be financially worse off.