More than 300,000 lose benefits as DWP makes major changes – and more could follow
The Department for Work and Pensions (DWP) has revealed that hundreds of thousands of benefit claimants have had their payments stopped in recent years as it continues to overhaul the universal credit system.
Official statistics show 356,521 households in the UK had their benefits cut off because they were unable to claim universal credit after being invited.
This means an average loss of payments of over £1,000 a month due to non-response to the “transition notice” that the DWP still sends to most households under “inheritance benefits”.
These include tax credits, income support, jobseeker’s allowance, employment and support allowance and housing benefit. The government aims to complete the transition of all this assistance to universal credit by the end of March 2026.
Of the 2.3 million households that have been sent migration notifications so far, 1.9 million have successfully migrated. Approximately 10,000 people are still continuing the migration process that started in July 2022.
Anyone whose inheritance benefits have been closed can then apply for universal credit, but they will not be guaranteed the same transitional protection. This ensures that anyone undertaking DWP’s managed transition will not see their total payments reduced as a result.
However, payments will not increase each year according to inflation as in previous years, but will remain the same until they reach universal credit levels.
Everyone who receives a migration letter has three months to claim universal credit. If no response is received within 11 weeks, the DWP said it would intervene with an “enhanced support journey” which could include letters and even home visits.
Social welfare experts continue to advise benefit claimants who receive letters to take timely action to ensure they do not miss out on benefits.
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Turn2Us benefits expert Conor Lawlor said: “If someone receives a managed transition letter now, they should claim universal credit before the deadline on their letter to ensure they receive transition protection.
“They should already be going through the enhanced support journey, so if there is no response after a notice is issued, DWP will contact them. “If they need additional support with their claim, they should do this. Use Turn2us, find a consultant tool.”
Research published by the DWP this week found that some of the main reasons why people choose not to claim after receiving a letter are confusion about eligibility requirements, believing they are earning too much and thinking the process requires too much effort.
Some believed their savings were too high, as unlike the old benefits, no claimant with savings over £16,000 would be able to claim universal credit. But the DWP said this rule will be ignored for 12 months for anyone subject to managed switching.
A DWP spokesman said: “It is important that people respond to the letter asking them to switch to universal credit to continue receiving benefits.
“For those taking action, help is at hand, including our dedicated helpline, guidance on gov.uk and free and independent help from Citizens Advice to request services.
“We also provide extra help such as phone calls and additional guidance to people leaving employment and support payments.”
