The Department for Work and Pensions (DWP) has set out the details of when millions can expect to start claiming Universal Credit. As part of ongoing “managed migration”, Universal Credit is gradually taking over from the older legacy benefits.
The phased rollout was put on hold during the Covid-19 crisis but resumed in May 2022, with about 2.6 million UK residents still receiving the traditional legacy benefits at that time. Those affected will receive a “migration notice” by mail, which comes with a three-month timeframe to apply for Universal Credit before their current benefits come to a halt. The legacy benefits being phased out include: Housing Benefit, Income-related Employment and Support Allowance (ESA), Income-based Jobseekers Allowance (JSA), Child Tax Credit, Working Tax Credit, and Income Support.
By March 2026, the DWP plans to have transferred everyone to Universal Credit. An official briefing on the UK Parliament’s website reveals that as from September, approximately 800,000 recipients getting income-related ESA alone or alongside Housing Benefit started receiving contact.
The target is to reach all these claimants by December 2025, reports the Mirror. Originally, these individuals were set to be transitioned by 2028/29, but the timeline has been accelerated. The DWP aims to transfer all legacy benefit recipients to Universal Credit (UC) by March 2026, thereby concluding the UC rollout and terminating all legacy benefits by this date.
In 2023/24, the DWP issued migration notices to over half a million households receiving only Tax Credits. The following year, an additional 440,000 households were contacted, including remaining Tax Credit claimants who are also receiving other legacy benefits, as well as all Income Support, income-based JSA, and Housing Benefit claimants.
If you believe you’d be financially better off on Universal Credit, you can opt to switch earlier, before your “migration notice” arrives in the post. However, it’s crucial to do your homework first, as once you’ve made the switch, there’s no going back to your old benefits.
If you think you’ll be better off, seek advice from Citizens Advice or Turn2Us before making the switch to Universal Credit. According to the DWP, 55% of people will be better off on Universal Credit, while 35% will be worse off. The remainder will see no change.
If you’re transitioned to Universal Credit and find yourself worse off, you’ll receive monthly transition payments designed to cover the shortfall – but only if you wait for the “managed migration” process. The transitional protection continues until there’s no difference between your Universal Credit award and your previous legacy benefits.
Bear in mind that once you apply for Universal Credit, your old benefits will cease and you’ll have a five-week wait for your first Universal Credit payment. Some legacy benefits, including Housing Benefit, Income Support, income-related ESA and income-based JSA, will “run on” for two weeks to help bridge this gap.