Latest DWP Move to UC statistics released

DWP figures released on 13 August 2024 show 34.4% of people sent a migration notice did not claim Universal Credit in time, as notices shift from Tax Credit to DWP benefit claimants.

The Department for Work and Pensions published its latest Move to Universal Credit statistics on 13 August 2024, covering the period to June 20241. The figures show that around a third of people (34.4%) receiving a migration notice asking them to move to Universal Credit from their legacy benefits did not claim in time, meaning their benefits stopped1. Since managed migration began, over a quarter of a million people have failed to move to Universal Credit1.

The composition of who receives a notice has changed sharply. Three months earlier, only 2,600 (0.3%) cases involved DWP benefit claimants, with the other 820,000 (99.7%) notices going to people receiving Tax Credits1. The latest figures show 270,000 (23.5%) of notices have gone to DWP benefit claimants and 870,000 (76.3%) to Tax Credit claimants1. Of the most recent notices, sent in the last three months, around 260,000 (84%) went to DWP claimants and 50,000 (16%) to Tax Credit claimants1. Apart from March 2024, the overall number of notices issued has stayed broadly constant since October 2023 at around 100,000 a month1.

People are given three months to move, with a possible one-month extension1. The DWP plans to have sent migration notices to 220,000 households whose rent is met in full or in part through Housing Benefit by next April1. From October, it plans to extend managed migration to the remaining Employment and Support Allowance claimants, approximately 800,000 people1. In the current phase, lasting until April 2025, only 80,000 ESA claimants are included, because they also claim Child Tax Credit1. Tax Credits are due to come to an end completely by April next year1.

The DWP's plan for notices in the 2024-25 financial year, as at autumn 2023, is set out below1.

GroupNotices planned
JSA income based20,000
ESA income based (and Child Tax Credits)90,000
Income Support110,000
Tax Credit & Housing Benefit120,000
Tax Credit only10,000
Housing Benefit only100,000
Total440,000

Asked about breakdowns by benefit combination, the DWP said:

"We have set out in section '4. Intended developments to the statistics and timeline' of the Release Strategy our intention to look at what additional breakdowns of statistics we can feasibly look to publish in the future which includes a benefits combination breakdown."

The Release Strategy was published on 13 February 20241.

Why it matters for households

A migration notice sets a deadline. If a household does not claim Universal Credit in time, the legacy benefit stops, and the 34.4% close rate means this has happened to over a quarter of a million people since managed migration began1. The group now being contacted is different from earlier phases: DWP benefit claimants are less likely to be working or to have worked recently, and are more likely to be vulnerable and to be disabled, according to entitledto1. For households whose rent is paid through Housing Benefit, a failed claim means that help with rent ends, and entitledto notes the risk of eviction, with 220,000 such households due to receive notices by next April1. Anyone who has received a notice can read our guide to migration notices, how Universal Credit works, and moving to Universal Credit from legacy benefits. Households affected by the Housing Benefit phase may find our pages on help with rent and Housing Benefit versus the Universal Credit housing element relevant.

What happens next

The next set of statistics is due in November, when entitledto says the position on DWP benefit claimants reaching their deadline should be clearer1. From October, the DWP plans to extend managed migration to the remaining ESA claimants, around 800,000 people1. Tax Credits are due to end completely by April next year1. Entitledto notes that the new government's position on the pace of the roll-out has not yet been set out, and that the new Secretary of State, Liz Kendall, may use her speech to the Labour Party Conference in late September to signal a change of focus1.

Sources1 cited
  1. How smoothly is the Move to UC campaign going? entitledto.co.uk