Benefit claimants who have not yet moved to Universal Credit are being urged by the government to switch or risk losing access to their benefits, Which? reported on 31 March 20241. The Department for Work and Pensions (DWP) is in the managed migration phase of the Universal Credit rollout, sending Migration Notice letters to households still claiming older benefits and tax credits1.
Universal Credit has been introduced across the UK to replace six older benefits and tax credits: child tax credit, working tax credit, housing benefit, Income Support, income-based Jobseeker's Allowance (JSA) and income-related Employment and Support Allowance (ESA)1. Other benefits, such as Personal Independence Payment (PIP), stay the same1. Around 1.7 million households were still receiving legacy benefits in November 2023, according to the DWP1.
The government plans to move all households claiming these older benefits to Universal Credit by the end of 20241. In 2023-24, migration notices are being sent to over 500,000 households getting tax credits only1. The DWP then plans to contact the 440,000 households that claim tax credits and also receive other legacy benefits, as well as all claimants of Income Support, income-based JSA and housing benefit, by September 20241. The migration of claimants of income-related ESA only, or income-related ESA and housing benefit, affecting around 600,000 households, has been delayed until 2028-291.
"You can only get this additional amount if you have received a Migration Notice and claim by the deadline date on your letter."
In April 2022, the DWP estimated that 55% of the remaining households on legacy benefits would have a higher entitlement on Universal Credit and 35% would have a lower entitlement1. Those with a lower entitlement are eligible for transitional protection payments, a top-up making up the difference between Universal Credit and previous tax credits or benefits1. There are special rules for two groups who would not normally qualify for Universal Credit: people moving from tax credits with more than £16,000 in savings, and students. After 12 months, normal eligibility rules apply1.
The deadline to apply is shown on the letter and should be three months from the date it was sent out1. Benefits including tax credits rose by 6.7% in the new tax year, and the first Monday of the new financial year, when higher rates kicked in, was 8 April1.
Why it matters for households
Anyone still on one or more legacy benefits should receive a Migration Notice1. The deadline on the letter is the point at which entitlement to the old benefits ends if no Universal Credit claim has been made1. For households whose Universal Credit entitlement is lower than their previous awards, transitional protection is only available to those who have received a Migration Notice and claim by the deadline on it1. Claimants moving from tax credits with more than £16,000 in savings, and students, can qualify under special rules, but normal eligibility rules apply after 12 months1. Claimants of income-related ESA only, or income-related ESA and housing benefit, are not part of the current wave, with that migration delayed until 2028-291.
What happens next
Migration notices for tax credits-only households are being sent during 2023-24, and the DWP plans to contact the 440,000 households claiming tax credits alongside other legacy benefits, plus all claimants of Income Support, income-based JSA and housing benefit, by September 20241. The government plans to move all households claiming the older benefits to Universal Credit by the end of 20241.
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