The Department for Work and Pensions is under pressure to justify the ‘unacceptable’ figures
The Department for Work and Pensions (DWP) has halted benefit payments for 184,000 individuals as part of the extensive transition from legacy benefits to Universal Credit. This drastic measure has sparked significant concern among experts.
People who receive six legacy benefits are gradually being moved on to Universal Credit through a process known as managed migration. The claimants in question lost out by not making the move to Universal Credit ahead of the deadline.
When it is time for a group on certain benefits to switch, they are sent a migration notice by the DWP. This explains when the deadline is, and gives people three months to act.
More than 800,000 migration notices have been sent out, with 184,000 failing to act and missing out on payments. Financial expert Tax expert Andy Wood has highlighted the potentially severe impacts.
“The DWP’s ability to manage the migration of claimants from legacy benefits to Universal Credit is concerning, especially for those vulnerable. The loss of benefits for many individuals is unacceptable, and the DWP must provide comprehensive support to ensure a smooth transition,” he said.
“The termination of benefits for 184,000 claimants highlights the critical need for a more empathetic and supportive approach in the Universal Credit rollout. Many of these individuals are likely facing significant challenges, and the DWP must prioritise their well-being over meeting migration targets. The primary goal should be ensuring that no one is left without essential support.
“According to a recent update from the DWP, 824,050 individuals in 540,070 households received migration notices between July 2022 and March 2024 across England, Wales, and Scotland. The vast majority (821,430) were tax credit claimants.
“The transition to Universal Credit is replacing six legacy benefits, including Working Tax Credit, Child Tax Credit, Housing Benefit, income-related Employment and Support Allowance (ESA), Income Support, and income-based Jobseeker’s Allowance.
“Of the 824,050 individuals issued migration notices between July 2022 and March 2024, 400,940 (49 percent) have successfully transitioned to Universal Credit, with 60 percent of those households receiving transitional protection to maintain their payment levels. An additional 238,990 (29 percent) are still in the process of switching.
“Meanwhile, 184,120 individuals (22 percent) have not transitioned and have had their legacy benefit claims closed, according to the DWP.“
