318,000 households on benefits have payments stopped by DWP

318,000 households could have their benefits cut after they failed to move on to Universal Credit. Figures from Department for Work and Pensions (DWP) show from July 2022 to June 2024, hundreds of thousands failed to respond to migration notices in a three-month window.

More than 318,000 households had their payments stopped because they did not move over. Ayla Ozmen, director of policy and campaigns at Z2K said: "We're concerned to see that more people have had vital benefit payments stopped as part of the government's plan to move people on to Universal Credit."

Experts have previously warned that managed migration poses a risk to vulnerable people who face losing money. Bosses at charities, including Mind, The Trussell Trust, Turn2Us and the Money and Mental Health Policy Institute, said in 2022 that around 700,000 with mental health problems, learning disabilities, and dementia could struggle to engage with the process.

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Universal Credit is replacing six benefits under the old welfare system, commonly called legacy benefits. They are: Working tax credit, Child tax credit, Income-based jobseeker's allowance, Income support, income-related employment and support allowance and Housing benefit.

If you're on any of these benefits now, you can choose to move over - but you might not be better off. You should consider carefully what moving over means for your money, as you can't move back once you're on Universal Credit.

Figures show 110,000 income support claimants and a further 120,000 claiming tax credits with housing benefit started receiving their letters in April. Over 100,000 housing benefit-only claimants were contacted in June. More than 90,000 people claiming employment and support allowance (ESA) along with child tax credits started being asked to switch in July.

And figures from the government benefits department show 20,000 claimants on jobseekers allowance (JSA) were contacted in September too.