DWP benefit claimants lose £4,130 due to Universal Credit switch delay

Millions of Brits are missing out on a substantial sum of money after failing to move across to Universal Credit.

Universal credit
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Universal credit

Brits are being warned about a change in the benefits system that could see them miss out on thousands of pounds. This is because of a ‘managed migration’ being carried out by the Department for Work and Pensions which will see people on the old system switched across to the new one.

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We reported earlier this week on DWP’s recent £737 boost to people with these 25 health conditions. Now, let’s get into the change that’s happening with legacy benefits and Universal Credit. Here’s everything you need to know.

Three-month deadline

Millions of Brits claiming the old-style legacy benefits are being moved over to Universal Credit. This ‘managed migration’ started in May last year and will see claimants receive a letter in the post.

The ‘migration notice’ received contains a three-month deadline. Recipients therefore have three months to start claiming Universal Credit, and if they don’t within the stated period, they will stop receiving financial aid. To give you an idea of how many people this is affecting, the DWP released some worrying figures that showed 31,460 households receiving Tax Credits had their benefits stopped after missing the deadline.

Missing the deadline

These claimants had received their ‘migration notice’ between November 2022 and September 2023. The average household lost out on roughly £4,130 a year as a result of missing the deadline to switch over. Overall, DWP stopped ‘well over £100 million worth of benefits for people who've missed their deadline’, according to Ayla Ozmen, director of policy and campaigns at anti-poverty charity Z2K. Six benefits are being replaced by Universal Credit, namely Working Tax Credit, Child Tax Credit, Income-based Jobseeker’s Allowance (JSA), Income Support, Income-related Employment and Support Allowance (ESA), and Housing Benefit.

If you have missed your deadline, there is help available, says a DWP spokesperson:

The vast majority of Tax Credit claimants have successfully moved to Universal Credit, accessing the vital safety net provided to millions as they build towards financial independence. There is a range of support available to help people move, including extensions for those who need extra support.

Some people may wish to make the switch before they even receive the letter. You can contact Citizens Advice or Turn2Us for advice about the move.

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Sources used:

Mirror: Warning as benefit claimants lose £4,130 each ahead of switch to Universal Credit

The Sun: SHAKE-UP Warning for those on tax credits ahead of payments stopping as thousands lose £100m – move to make to avoid missing cash

Universal Credit claimants could soon lose almost £400 in major change to benefits Universal Credit claimants could soon lose almost £400 in major change to benefits