DWP benefit claimants told to act now or lose up to £878 a month

Households could find their payments terminated over the expensive Christmas period if they don't take action

Thousands of benefit claimants could lose up to £878 a month - with no going back - if they don't take urgent action. The Department for Work and Pensions is asking people on legacy benefits to move to Universal Credit within three months of receiving a letter telling them to do so, or their payments will be stopped.

The DWP's 'managed migration' of people onto Universal Credit is currently targeting those on income-related Employment and Support Allowance (ESA). Around 90,000 people claiming this benefit on top of tax credits have already been sent letters in July telling them to make the switch. This month, similar letters are being sent to another 800,000 people who claim ESA on its own or with Housing Benefit.

About 20,000 people on income-based Jobseeker's Allowance are also being asked to make the move this September. Anyone who receives a 'migration notice' letter must apply for Universal Credit within three months - giving a deadline of around Christmas time - or their current benefits are terminated for good. People can ask for an extra one-month 'grace period' if they are very late in deciding to make the changeover.

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Income-related ESA is an incapacity benefit for people with health problems and disabilities that affect their ability to work. It pays up to £90.50 a week if someone is in the work-related activity group (which means they'll have to prepare to get a job in the future) or up to £138.20 a week if they are in the support group (which means they don't have to look for work).

ESA is generally paid every two weeks. Over four weeks, these amounts are equivalent to £380 or £552.80. Disability premiums are often paid on top, increasing the amounts further.

The standard disability premium is £42.50 a week for a single person and £60.60 a week for a couple, while the severe disability premium pays £81.50 a week for a single person and £163.00 a week for a couple if both people are eligible. The enhanced disability premium is £20.85 a week for a single person and £29.75 a week for a couple if at least one person is eligible.

Failing to move to Universal Credit before the deadline would mean all these amounts are stopped with no chance to go back on to them.

Replacing income-related ESA with a Universal Credit claim would see a single person under 25 get a standard allowance of £311.68 per calendar month, while a single person aged 25 or over would receive £393.45. A couple who are both under 25 would receive a standard allowance of £489.23 and if one or both were aged 25 and over that would be £617.60.

Those who are in the ESA support group should be automatically moved to Universal Credit's similar 'limited capability for work and work-related activity' (LCWRA) group which pays an extra £416.19 a month.

So, for a single person over 25 on income-related ESA and in the support group with a severe disability premium, the current total received is £878.80 every four weeks. On Universal Credit, the equivalent amount offered (for a single person over 25 who has moved from the ESA support group into the UC LCWRA group) is £809.64. Transitional protection offered to those who move when receiving a letter would top this back up to what they were on before.

The Department for Work and Pensions said: "If you get a Migration Notice, you must move to Universal Credit within three months to keep getting financial support. If you or your partner gets Pension Credit, this will also stop if one of you claims Universal Credit.

"If you cannot claim Universal Credit by the deadline date, you should contact the Universal Credit Migration Notice helpline as soon as possible. You may be able to get more time to make a claim if you have a good reason. You must request this before your deadline date.

"You'll continue getting any other benefits you already receive, such as Personal Independence Payment (PIP) or Carer's Allowance. On Universal Credit, most people will be entitled to the same amount they received from their previous benefits, or more. If your circumstances change before you make your claim, this may affect the amount you get."

The Universal Credit Migration Notice helpline number is 0800 169 0328 and is open Monday to Friday, from 8am to 6pm.

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