The Department for Work and Pensions (DWP) is set to continue with its Universal Credit migration in 2025, with millions of households to make the move in the coming year.
During 2024, thousands transitioned from traditional benefits like Tax Credits to Universal Credit amid the managed migration process. Now, the DWP‘s focus shifts towards people receiving Income Support and the more than two million UK residents on Housing Benefit after new analysis on the migration so far.
The migration starts with notices sent out by the DWP, which has already dispatched thousands since June to individuals on Housing Benefit and Income Support claiming benefits in combination with other legacy benefits like Tax Credits.
While Tax Credit recipients were the primary focus for most of 2024, attention is pivoting to other legacy benefits in 2025, with 2.1 million households yet to transition.
Feedback from benefit recipients has prompted adaptations in the managed migration process, leading the DWP to acknowledge the initial “overwhelming” impact of migration notices.
Consequently, it has refined the content of its letters to ensure the message is clear and fully comprehensible.
Once a claimant gets this notice, they must either lodge their own Universal Credit claim on the gov.uk site, via the dedicated phone line or they’ll be directed to support that can assist them with their application.
When they’ve made their claim for Universal Credit, their legacy benefits will cease, but if they apply before the deadline shown on their migration notice, they’ll be entitled to a transitional element.
This ensures their benefit payments don’t abruptly fall or completely stop during the transition to Universal Credit, this will end or start decreasing once they get their first Universal Credit payment. They’ll also receive transitional protection, which could boost the amount of Universal Credit they receive if the amount they’re eligible for would be drastically downgraded after the migration
The latest figures from the DWP showed people getting Income Support or Employment and Support Allowance are more likely to seek help when making their Universal Credit claim. Whereas people on Housing Benefits and other legacy benefits are more likely to claim Universal Credit than those receiving Tax Credits alone.
If claimants disregard their migration notices and don’t make a Universal Credit claim, their legacy benefits will stop. At present, the DWP plans to send out the final migration notices next December and begin closing legacy benefits by March 2026.
