DWP cuts off benefits for 280,000 people over universal credit change: ‘This is extremely worrying’

More than one in three people who were on legacy benefits have not claimed universal credit and have had their benefits closed, new figures from the Department for Work and Pensions (DWP) show.

Between July 2022 and February 2024, the DWP sent 810,230 notices warning people that their old-style legacy benefits would be closed and they would have to claim universal credit.

Of these, 277,750 people did not claim universal credit and had their benefits claims closed as the DWP continues its migration process.

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There are six legacy benefits: income-based jobseekers allowance, income-related employment and support allowance, income support, housing benefit, child tax credit and working tax credit.

People who claim these benefits will have to move over to universal credit by 2029. If they receive a migration notice from the DWP, claimants are given a deadline to claim universal credit – which is usually three months from the date the migration letter was received.

Michael Clarke, head of information programmes at anti-poverty charity Turn2us, says: “Far too many people are unable to transition to universal credit after receiving a migration notice. Benefits are often a lifeline for the people we work with and this loss of support could have severe consequences for their wellbeing. 

“Many of those still claiming legacy benefits have complex needs and may lack digital access and support to manage their benefits. The DWP must provide everyone with adequate time, accessible information, and the personalised support they need to make the move to universal credit.”

A previous report from the National Audit Office found that the DWP “does not fully understand why some people on legacy benefits do not claim universal credit” but preliminary studies suggest that confusion and stigma play a role.

DWP-commissioned research from 2022 found that there are “real and perceived barriers to claiming universal credit, including where people believed that the migration notice did not apply to them, that they would not be eligible for universal credit due to a recent change in circumstances, or that they would be moved automatically”.

Following the 2022 research, the DWP started sending second reminders to people, but these latest figures have prompted fears that people are still missing out on financial support because of the migration to universal credit.

John McDonnell, Labour MP and former shadow chancellor, tweeted in reaction to the new figures: “This is extremely worrying. We need a speedy inquiry to clarify what is happening as this could mean many of the poorest are losing all support.”

Ayla Ozmen, director of policy and campaigns at anti-poverty charity Z2K, said: “We’re really concerned that such a high proportion of people have missed the universal credit claim deadline and had their benefits stopped.

“With the government starting to move seriously ill and disabled people currently on ESA over to universal credit from next month, it’s likely that more people will need additional support to ensure they can meet the claim deadline. It’s vital that DWP ensures appropriate safeguards are in place so that no one is left without anything to live on.”

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