DWP plans to drop the 10,000-case limit and press ahead with managed migration through a "Discovery Phase"

The Social Security Advisory Committee has published minutes and correspondence showing it opposed dropping the 10,000-case limit on Universal Credit managed migration, as DWP pressed ahead with a "Discovery Phase".

The Social Security Advisory Committee (SSAC) published minutes of its December 2021 meeting and its subsequent correspondence with Department for Work and Pensions (DWP) ministers in late March 2022, setting out its objections to the Department's plans to drop the 10,000-case limit on managed migration and proceed through a "Discovery Phase"1. Managed migration moves claimants of legacy benefits on to Universal Credit without a change of circumstances1.

The 10,000-case limit dates from 2019, when the then Work and Pensions Secretary Amber Rudd agreed that a maximum of 10,000 people could go through a managed migration pilot, with an evaluation report produced showing it was not having an adverse effect before Parliament would be asked to approve nationwide roll-out1. In her statement at the time she said the pilot would "give colleagues and claimants confidence in the Department's approach to the transition"1. The limit was set out in regulations from July 2019, starting with small numbers of no more than 10,000 claimants, expected to take around 12 months1.

In her statement, the Secretary of State Therese Coffey said her Department would resume the managed migration process and complete the move to UC by 20241. Despite only moving 38 people during the Harrogate Pilot, Ms Coffey stated it provided "valuable insights" and that the Department had "learned from this experience"1. DWP will begin the move initially with 500 claimants in Bolton and Medway1.

SSAC's formal reference report focused on the oversight and governance improvements needed to safeguard claimants if DWP decided to press on without reversing its proposed changes1. Its chair, Dr Stephen Brien, said:

"A process to move around 1.7 million households, many with complex lives, onto Universal Credit from legacy benefits creates a significant risk for both those who are reliant on these benefits and also for DWP in delivering it. For the public to have confidence in this process and to minimise risk further consideration needs to be given to establishing appropriate independent oversight and scrutiny of the programme as it moves forward."

In May 2022 the Work and Pensions Select Committee held a one-off session on UC managed migration1. On the three-month migration notice period, Ms Coffey said: "For the first groups of claimants in this initial phase of discovery, I have decided the department will not terminate any benefits if the claimant fails to claim within the three-month period given"1. Instead, DWP will make a minimum of a one-month extension to the deadline outlined in the notice, with proactive engagement to understand why the claimant has not claimed1.

DWP states it will ensure the claimant's entitlement on UC "at the point of managed transition" is not below that of legacy benefits, but Transitional Protection only lasts for three months at the point of making a claim1. Around 900,000 of the 1.7 million who will be moved between May 2022 and December 2024 will have their income eroded over time1.

In its response to the Committee, DWP said: "The Department welcomes the Committee's focus on the regulation regarding the removal of the 10,000 limit on the number of claimants who can be sent a managed migration notice"1. It added that the committee had not made any recommendations regarding the draft regulations, so no amendment had been made to them1.

Why it matters for households

Managed migration affects people claiming legacy benefits such as Employment and Support Allowance, and the briefing puts the number in line for the process at 1.7 million households, with an average of nearly 3,000 legacy benefit claimants in each constituency1. The removal of the 10,000-case limit means DWP can issue migration notices beyond that number without returning to Parliament for approval first, which SSAC had argued should happen1.

For those moved, entitlement on UC at the point of managed transition is stated by DWP not to be below that of legacy benefits, but Transitional Protection lasts only three months from the point of making a claim1. Around 900,000 of the 1.7 million moved between May 2022 and December 2024 are expected to have their income eroded over time1. The three-month migration notice period is the deadline for claiming; during the initial phase of discovery, DWP has said it will not terminate benefits if a claimant fails to claim within that period, and will instead make a minimum one-month extension1.

What happens next

DWP will begin the move initially with 500 claimants in Bolton and Medway1. The Department has said it would resume the managed migration process and complete the move to UC by 20241. SSAC's key recommendation was that the Senior Responsible Owner should "present the scaling-up proposals to the Work & Pensions Select Committee for scrutiny and assurance before proceeding"1. The briefing states that a decision on publication of a Cabinet Office "deep dive" report into the experiences of vulnerable people who moved to UC through natural migration is with the Information Commissioner1.

Sources1 cited
  1. Universal-Credit-Managed-Migration-Briefing-July-2022.pdf z2k.org