Many have missed out on thousands of pounds in payments after the DWP issued a stark warning to all those claiming six legacy benefits
More than a quarter of a million households on DWP benefits have missed out on substantial sums following a significant overhaul. Six legacy benefits are being phased out in favour of Universal Credit, with claimants facing the risk of payment termination if they fail to transition.
Recent government data reveals that 338,718 benefit recipients did not switch to Universal Credit within a crucial three-month period. Two million individuals receiving legacy benefits are being incrementally transferred to Universal Credit through a process known as managed migration.
The DWP initiated the dispatch of initial migration notices from May 2022. Full-scale managed migration kicked off in April 2023 and is progressively being rolled out across Great Britain.
Read more: Aldi slips down ranks of top supermarkets
As part of this procedure, eligible households on legacy benefits, like tax credits, receive “migration notices” via mail. These notices instruct them on how to switch to Universal Credit, as the changeover isn’t automatic.
It’s critical for households to apply for Universal Credit within three months of getting this notice, or they risk having their benefits halted. From July 2022 to August 2024, the Government issued 1,306,824 migration notices.
Yet, per the latest figures from the DWP, 338,718 individuals forfeited their benefits by not applying for Universal Credit by December 2024. Approximately 962,536 met the deadline to claim Universal Credit.
About half of the working tax credit recipients had their claims closed without moving to Universal Credit. Meanwhile, 32% of.
Child tax credit claimants have seen their claims closed before they could apply for Universal Credit. The success rate for Employment and Support Allowance is significantly higher.
Migration notices for Employment and Support Allowance started being dispatched in September of the previous year. Between September and December last year, approximately 37,481 migration notices were issued.
Of this group, 26.5% have successfully claimed Universal Credit, while 73.2% of applications are still being processed. Only 0.33% of their legacy benefit claims have been closed.
In some instances, no claim is made because the individual is no longer eligible for benefits, such as if their circumstances have changed, like securing employment.