Universal Credit payments to be slashed, Rachel Reeves announces
GBNEWS
Households receiving one of five legacy benefits, have been receiving postal notifications outlining the steps required to transition to Universal Credit
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Hundreds of thousands of households are being issued an urgent warning not to ignore crucial Universal Credit migration letters.
The Department for Work and Pensions (DWP) is accelerating its "managed migration" process to move all legacy benefit claimants onto Universal Credit.
Alarmingly, 381,440 people have already lost their benefits after failing to respond to these letters within the required timeframe.
Around 400,000 more households currently receiving income-related employment and support allowance (ESA) must now make the transition.
The warning comes as part of the government's ongoing efforts to phase out legacy benefits, which began with a pilot in July 2019 before officially launching in July 2022.
Recipients of migration notices have just three months to switch or risk losing their financial support. ESA provides financial support for those unable to work due to illness or disability.
The Government has dramatically accelerated its timeline for the transition process. Initially, ESA claimants were to be transferred to Universal Credit by the end of 2028.
This deadline has now been brought forward to March 2026, giving claimants less time to adjust to the new system.
To date, 200,000 ESA claimants have successfully made the switch to Universal Credit.
This leaves approximately 400,000 households still needing to complete the transition before benefits are cut off.
Anyone who claims Universal Credit before receiving an official letter could lose their protection
GETTYThe DWP has already closed new claims for four legacy benefits including tax credits, income support, income-based jobseeker's allowance, and housing benefit.
To meet the accelerated timeline, the DWP is significantly ramping up its efforts to contact remaining claimants.
The department is now sending out 83,000 migration notices each month.
This stepped-up approach means officials aim to have contacted all remaining legacy ESA claimants by September 2025.
The accelerated schedule is designed to provide households with sufficient time to successfully transition to Universal Credit.
This gives claimants approximately six months between the final notices being sent and the March 2026 deadline.
The process forms part of the government's wider strategy to streamline the benefits system.
Legacy benefits are being phased out in favour of the single Universal Credit payment system.
Claimants are being urged to act promptly when they receive their migration notice.
Upon receiving a migration letter, claimants have a three-month window to make the switch to Universal Credit.
Failure to act within this timeframe will result in the termination of existing benefits, as already experienced by over 380,000 individuals.
The DWP encourages all ESA recipients to respond promptly to migration notices to ensure continuous financial support
GETTYSupport is available for those navigating the transition process. Claimants can visit their local Jobcentre by searching at find-your-nearest-jobcentre.dwp.gov.uk.
Citizens Advice offers a free Help to Claim service. This support can be accessed online at citizensadvice.org.uk/about-us/contact-us/contact-us/help-to-claim.
Benefit calculators are also available to help households understand how the switch might affect their financial situation.
The DWP encourages all ESA recipients to respond promptly to migration notices to ensure continuous financial support.