The DWP is in the process of notifying benefit claimants about their transition to Universal Credit. Universal Credit has replaced various older benefits for numerous UK households. The migration to Universal Credit includes individuals receiving income-related Employment and Support Allowance, with all eligible claimants expected to be contacted by September 2025. The DWP aims to complete the migration process by March 2026 and will send out migration notices to those yet to transition.
Beneficiaries have a three-month deadline to move to Universal Credit, after which their existing benefits will cease. The DWP states that 55% of individuals will benefit from Universal Credit, 35% may receive less, while the remainder will experience no changes. Those facing financial loss will receive monthly transition payments until their Universal Credit matches the previous benefit amount.
Transitional protection will continue until the new Universal Credit award aligns with the previous benefit amount. However, to receive these transitional payments, individuals must wait for the managed migration process. It is essential to note that there is a five-week waiting period for the first Universal Credit payment, although certain legacy benefits may provide financial support during this time.
Universal Credit comprises a standard allowance, with additional elements such as child support or disability considerations. For employed individuals, a taper rate reduces the Universal Credit payment as earnings increase. Some may qualify for a work allowance, allowing a specific monthly income before Universal Credit deductions apply.
The transition to Universal Credit signifies a significant change in the UK’s benefits landscape, affecting millions of households.
