DWP confirms urgent benefits move will affect thousands of people in four groups

Some people are having to make the changeover four years earlier than expected

An urgent benefits move will affect thousands of people in four key groups. The Department for Work and Pensions has confirmed the final wave of letters for making a changeover to Universal Credit.

In its latest guidance on the plans, the DWP says the four groups expected to have been notified by the end of September include all remaining people on tax credits who are of State Pension age, plus those on income-based Jobseeker's Allowance, claimants who only receive income-related Employment and Support Allowance (ESA), and others who are on income-related ESA coupled with Housing Benefit.

In total, hundreds of thousands of people will be impacted, most of them claiming ESA. These benefit recipients hadn't been due to move across to Universal Credit until 2028/2029 but that has been brought forward by four years.

Most people in each of the four groups should have been sent Migration Notice letters by the end of September. But the DWP says the schedule is only a guide and people shouldn't worry if they have not yet been contacted. It's aiming to complete the process by December 2025 so that all the legacy benefits involved can be shut down at the start of the next financial year.

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In addition, some people on tax credits who are of State Pension age will instead have been asked to move onto Pension Credit, with letters sent to this group in July.

DWP guidance says: "It is important that you do not do anything until you receive your letter. This is called a Universal Credit Migration Notice and it tells you when you need to move to Universal Credit.

"You will not be moved automatically and you must claim Universal Credit by the deadline date given in your letter. The deadline date for applying is three months from the date the letter is sent out. Look out for your letter as ignoring it could even stop your payments.

"If you have a question about claiming Universal Credit or have a problem getting online, call the number shown in your Universal Credit Migration Notice letter. If you currently receive tax credits, you'll still need to claim by the date in your letter even if you’ve just renewed your tax credits."

The DWP says you won't have to move to Universal Credit if you only receive Housing Benefit and either you or you and your partner:

• are of State Pension age (66 years old or over)
• live in temporary accommodation provided by a council because you were homeless
• live in supported accommodation including refuges, hostels, extra care housing and some sheltered housing

Instead, you will continue to receive support with housing costs through Housing Benefit.

In addition, anyone who is only on new-style benefits - which are based on National Insurance contributions - doesn't need to move across to Universal Credit either. The two benefits this applies to are New Style Employment and Support Allowance and New Style Jobseeker's Allowance. You could opt to claim Universal Credit as well as either of these but an amount equal to what you receive in your new-style benefits would be deducted from your monthly UC payment.

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