The Department for Work and Pensions (DWP) is in the process of sending final notifications to individuals receiving benefits who are transitioning to Universal Credit this month.
Universal Credit has now taken over most previous benefits for millions of UK households, including Tax Credits, Income Support, income-based Jobseeker’s Allowance, and Housing Benefit.
While there are still some individuals receiving income-related Employment and Support Allowance (ESA) who will be moved to Universal Credit, all remaining claimants are expected to be contacted by September 2025.
The DWP aims to complete the “managed migration” to Universal Credit by March 2026. Individuals yet to be transferred will receive a “migration notice” via mail.
A three-month deadline will be provided to switch to Universal Credit, after which existing benefits will cease for those who have not transitioned.
According to the DWP, 55% of claimants will benefit from Universal Credit, 35% will face a decrease in benefits, and the remaining will see no change. Those experiencing a reduction will receive monthly transition payments to cover the shortfall.
Transitional protection will continue until the new Universal Credit award matches the previous benefits received under legacy schemes, provided individuals opt for managed migration.
It’s important to highlight that there is a five-week waiting period for the first Universal Credit payment, although some legacy benefits like income-related ESA will continue for an additional two weeks to bridge the gap.
Universal Credit comprises a standard allowance, which is the base amount before additional elements or deductions are factored in for factors like children or inability to work due to health reasons.
For individuals working, there is a taper rate of 55% that reduces the maximum Universal Credit payment as earnings increase. Some may qualify for a “work allowance” allowing them to earn a certain amount before benefits are reduced.
Various elements like the child element, limited capability for work, carer element, work allowance, and childcare costs element are included in the Universal Credit scheme.
At Reach and our associated entities, we and our partners utilize information gathered through cookies to enhance site experience, analyze usage, and display personalized ads. You can opt out of data sharing or selling by clicking the designated button on the site. Your use of our services implies consent to our cookie usage and privacy practices outlined in our Privacy Notice and Cookie Policy.