DWP to contact remaining tax credit, Income Support, JSA and housing benefit claimants by September 2024

The Department for Work and Pensions (DWP) plans to contact 440,000 households that claim tax credits alongside other legacy benefits, plus all claimants of Income Support, income-based Jobseeker's Allowance (JSA) and housing benefit, by September 2024¹. The letters, known as Migration Notices, require claimants to apply for Universal Credit by a deadline or lose their existing financial support¹.

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 JSA and income-related Employment and Support Allowance (ESA)¹. Other benefits, such as Personal Independence Payment (PIP), are unaffected¹. Around 1.7 million households were still receiving legacy benefits in November 2023, according to the DWP¹.

The timetable differs by claimant group. In 2023-24, migration notices were sent to over 500,000 households receiving tax credits only¹. The migration of claimants receiving income-related ESA only, or income-related ESA and housing benefit, affecting around 600,000 households, has been delayed until 2028-29¹. The government plans to move all households claiming the older benefits across to Universal Credit by the end of 2024¹.

In April 2022, the DWP estimated that 55% of remaining households on legacy benefits would have a higher entitlement on Universal Credit and 35% would have a lower entitlement¹. Claimants whose Universal Credit entitlement is lower may be eligible for transitional protection payments, a top-up making up the difference, but only if they have received a Migration Notice and claim by the deadline on their letter¹.

Special rules apply to two groups who would not normally qualify for Universal Credit: people moving from tax credits with more than £16,000 in savings, and students. If they claim after receiving a Migration Notice and before the deadline, they remain eligible, but after 12 months normal eligibility rules apply¹.

Why it matters for households

Anyone still claiming the legacy benefits listed above is affected, with the timing depending on which benefits they receive¹. The deadline to apply is shown on the letter and should be three months from the date it was sent¹. Claiming by that deadline is the condition for receiving transitional protection where Universal Credit entitlement is lower¹. For those whose deadline falls after 8 April, benefits including tax credits were rising by 6.7% in the new tax year, which affects the size of any top-up depending on when a claim starts¹. The benefits hub sets out how the system works, and moving to Universal Credit from legacy benefits covers the process, with transitional protection explaining the top-up. Claimants receiving housing benefit can read housing benefit versus Universal Credit housing costs and help with rent.

What happens next

The DWP planned to contact the 440,000 mixed tax credit households and all Income Support, income-based JSA and housing benefit claimants by September 2024¹. The government planned to move all households claiming the older benefits to Universal Credit by the end of 2024¹. Migration for income-related ESA claimants, alone or with housing benefit, has been delayed until 2028-29¹.