DWP contacting 2m people over major Universal Credit change

The Department for Work and Pensions (DWP) is in the process of moving more than two million people from their older benefits to Universal Credit.

The DWP plans to have contacted everyone affected by the next stage of the so-called "managed migration" process by December 2025. When it is your turn to make the move to Universal Credit, the DWP will send you a "migration notice" letter, giving you three months to make the switch to the new benefit.

Universal Credit is replacing the following six benefits: Working Tax Credit, Child Tax Credit, Income-based Jobseeker's Allowance (JSA), Income Support, Income-related Employment and Support Allowance (ESA) and Housing Benefit.

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Three months after you receive the migration notice, your existing benefits will be stopped. However, you can decide to make the switch before you get the notice from the DWP - if you think you'll be better off on Universal Credit.

You are advised to do your research before asking to be switched early, however, as you cannot move back to your existing benefits once you've made the move.

Am I better off on Universal Credit?

The DWP says 1.4million people (55%) will be better off on Universal Credit - with 900,000 (35%) worse off and the other 300,000 benefit claimants seeing no change. There are free online benefit calculators that can help give you an idea if you are likely to be better off on Universal Credit - including entitledto calculator and Turn2us calculator.

You are advised not to solely rely on these calculators, however, in case you have made a mistake inputting the information. It is best to seek expert advice before making the switch - from a benefits advisor, for example. They should be able to double-check your benefit entitlement and tell you if you're better off moving now or waiting.

Applications for Universal Credit can usually be made through the GOV.UK website. Working Tax Credit or Child Tax Credit stop as soon as you put in the Universal Credit claim but other benefits carry on for two weeks.

What if I'm not better off on Universal Credit?

You get monthly transition payments to cover any financial shortfalls you face if you are moved to Universal Credit and are left worse off. This transitional protection lasts until there is no difference between the amount you get under Universal Credit and what you received before under the old benefits.

The transitional payments are only awarded if you are switched by the DWP through the "managed migration" process. Speak to a benefits advisor if you are not clear about how your payments will be affected.

I'm better off on Universal Credit but what else do I need to know?

There are more factors to consider before moving across to Universal Credit - even if you are going to be better off following the switch. For example, Universal Credit is paid monthly, so you have to allow for that if you are used to getting benefits more regularly.

You also have to wait five weeks for your first payment of Universal credit. There are also job commitments that come with the new benefit - for example, many people are expected to spend up to 35 hours a week applying for jobs. Before you sign your claimant commitment, you should learn what is going to be expected from you.

If you work, Universal Credit can also fluctuate each month depending on how much you earn in your assessment period. Finally, if you have debts, up to 25% of your Universal Credit standard allowance can be deducted to pay off money owed to council tax, energy, rent, and child maintenance.