The Work and Pensions Select Committee held a one-off session in May 2022 on Universal Credit managed migration, the process that moves claimants of legacy benefits on to Universal Credit without a change of circumstances1. The session followed the Social Security Advisory Committee's (SSAC) publication in late March 2022 of minutes from its December 2021 meeting and its correspondence with DWP ministers over plans to drop the 10,000-case limit on managed migration and proceed through a "Discovery Phase"1.
In response to the Committee's concerns about the three-month migration notice period, the Secretary of State for Work and Pensions, Therese 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. Instead, if these claimants have failed to engage with the department, DWP will make a minimum of a one-month extension to the deadline outlined in their notice. In this time, we will undertake proactive engagement with the claimant to understand why they have not claimed."
The briefing notes that while this applies to the "initial phase of discovery", concerns remain about what happens to those moved after this phase1. SSAC's formal reference report focused on the oversight and governance improvements needed to safeguard claimants if DWP pressed on without reversing its proposed changes1. Its 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 background to the session includes the 2019 commitment by then Work and Pensions Secretary Amber Rudd that a maximum of 10,000 people could go through a managed migration pilot, with an evaluation report produced before Parliament would be asked to approve nationwide roll-out1. In her statement, Coffey said her Department would resume the managed migration process and complete the move to UC by 20241. DWP will begin the move initially with 500 claimants in Bolton and Medway1. Despite only moving 38 people during the Harrogate Pilot, Coffey stated it provided "valuable insights"1.
SSAC has said the risks have the potential to impact adversely upon up to 1.7 million households1. Around 900,000 of the 1.7 million who will be moved between May 2022 and December 2024 will have their income eroded over time, according to the briefing1. 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.
Why it matters for households
People receiving legacy benefits such as Employment and Support Allowance, Jobseeker's Allowance, Income Support, Housing Benefit and tax credits are affected. Managed migration moves them on to Universal Credit without a change of circumstances1. The initial phase covers 500 claimants in Bolton and Medway1. The three-month migration notice period is the deadline by which a claimant must make a Universal Credit claim. Coffey said that during the initial phase, benefits will not be terminated if a claimant fails to claim within three months, and DWP will make a minimum one-month extension1. The briefing notes that it is not clear what will happen after this initial phase1.
Transitional Protection, which DWP says ensures entitlement at the point of managed transition is not below legacy benefit levels, lasts for three months at the point of making a claim1. Around 900,000 of the 1.7 million people moved between May 2022 and December 2024 are expected to have their income eroded over time1. The briefing also notes DWP's insistence that people wait a minimum of five weeks for their first Universal Credit payment1.
What happens next
DWP will begin the move initially with 500 claimants in Bolton and Medway1. The Secretary of State said her Department 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 scaling-up proposals to the Work and Pensions Select Committee for scrutiny and assurance before proceeding1. The briefing states that a decision on the publication of a Prime Minister's Implementation Unit report into the experiences of vulnerable people who moved on to UC via natural migration is with the Information Commissioner1.
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