Where do we currently stand? Well, as of January 2025, Department for Work and Pensions (DWP) is in the final stages of transitioning all claimants from legacy benefits to Universal Credit (UC), a process known as managed migration. This initiative aims to consolidate multiple benefits into a single, streamlined payment system which is Universal Credit. Citizens Advice has seen a huge spike in people needing support and being anxious about the transition across the UK.
Managed migration involves systematically moving individuals receiving legacy benefits—such as Tax Credits, Housing Benefit, Income Support, Jobseeker’s Allowance, and Income-Related Employment and Support Allowance—to Universal Credit. The DWP issues migration notices to affected households, instructing them to apply for UC within a specified timeframe, typically three months. Failure to act within this period results in the termination of existing benefits.
Between July 2022 and September 2024, the DWP dispatched approximately 1,369,367 migration notices to 943,343 households. Of these, 883,944 individuals from 622,127 households successfully transitioned to Universal Credit. Notably, 320,376 households received transitional protection to ensure their benefit amounts were maintained during the switch. However worryingly, 318,834 individuals did not claim UC within the allotted time, leading to the closure of their legacy benefit claims.
The managed migration process presents several risks, particularly for vulnerable groups such as individuals with mental health issues, disabilities, or cognitive conditions. These individuals may face difficulties understanding or responding to migration notices, increasing the likelihood of missed deadlines and subsequent loss of up to 100% of their benefits. Many people are anxious about opening letters from the DWP and some have attributed the letters to be scams.
Charities and advocacy groups have raised concerns about the adequacy of support provided by the DWP to these people during the transition.
Additionally, while some claimants may find themselves better off under Universal Credit, others could experience reduced payments. To mitigate immediate financial losses, the DWP offers transitional protection payments. However, this protection is contingent upon timely application; those who miss the migration deadline forfeit this safeguard, potentially impacting their financial stability.
Another key factor is that this transitional protection does not last forever and is subject to ‘erosion’. If you have a change in circumstances such as a partner dying or moving out of the property due to relationship breakdown you will lose their part of the payments including the support that was added as part of the transitional protection.
The DWP is approaching the culmination of its managed migration to Universal Credit, with most claimants successfully transitioned. The last people to migrate should receive a migration notice by December 2025. Nonetheless, the process has highlighted significant challenges, particularly concerning the support provided to vulnerable individuals and the consequences of missed deadlines.
As the transition progresses, it remains imperative for all stakeholders to address these issues to ensure a fair and effective benefits system.
Do you or your organisation need support with understanding the managed migration process to Universal Credit?
Do you support vulnerable clients who may be at risk of losing their benefits? Sign up for our brand-new 2 hours and 30 minutes Managed Migration workshop which looks at:
• Where do we currently stand with managed migration and what is the process?
• What is a migration notice and what do you need to do when one arrives?
• How to support vulnerable clients with managed migration and make sure payments do not stop.
• Gain and understanding on transitional protection and the erosion of benefit payments over time.
• Tactics to maximise and protect your clients’ rates of benefit entitlements and avoid potential pitfalls during the managed migration process.
• An opportunity to ask our welfare benefits experts any questions you may have.
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