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Social Justice

Homeless people risk losing benefits if they don’t move to universal credit, DWP warns

‘It is vital homeless customers know that moving to universal credit is essential, because not moving could mean their legacy benefits are stopped’

Homeless people could lose their legacy benefits if they fail to move to universal credit, the Department for Work and Pensions (DWP) has warned.

Since 2022, the DWP has been migrating claimants from so-called “legacy benefits” – welfare payments such as employment and support allowance – to universal credit.

The process has been controversial. Advocates say many people with “complex needs” struggle to make new claims, risking a sudden loss of support.

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“Far too many people are unable to transition to universal credit after receiving a migration notice,” Michael Clarke, head of information programmes at anti-poverty charity Turn2us, told Big Issue previously.

“Many of those still claiming legacy benefits have complex needs and may lack digital access and support to manage their benefits.”

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Homeless people are especially vulnerable, admitted minister for social security and disability Stephen Timms.

“It is vital homeless customers know that moving to universal credit isn’t just about accessing better support – it’s essential, because not moving could mean their legacy benefits are stopped,” he told Big Issue.

“We’re determined to do everything we can to prevent that.”

Migration notice letters are sent to a claimant’s “correspondence” address – but many homeless people don’t have one.

“That’s why we’re asking Jobcentres, partners, and anyone who can help, to work with us to reach legacy benefit customers who are homeless or have no fixed abode,” Timms added.

“They’ll need different kinds of support, so we’re asking them to share information with outreach workers or meet them face-to-face to make sure they’ve seen the letter telling them how and when to move.”

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What is legacy benefit migration?

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

Everyone receiving these benefits must move to UC by 2029. Once a migration notice arrives, claimants usually have three months to apply.

Between July 2022 and June 2025, some 2.1 million people were sent migration notices. Of these, some 1.6 million have claimed universal credit. 340,260 missed the deadline and had their legacy benefits stopped, while the remainder of migrations are still in process.

Many who lost support were particularly vulnerable, according to DWP’s own research. The department commissioned Ipsos Mori to interview claimants making the switch. The findings were stark.

The result – published last week – paints a damning image.

“Participants with physical and mental health conditions had a particularly negative emotional response to the migration notice and so they put it aside and said they wanted to forget about it,” the Ipsos Mori polling found.

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“They were anxious about the move to UC and did not want to go through the process.”

People who subsequently failed to claim cited feelings of “overwhelm” and “confusion”.

How to change your legacy benefits over to universal credit?

Customers will not automatically be moved to universal credit, they will have to make a claim.

If you are on a legacy benefit, you should receive a migration notice letter (an official DWP letter) which will be sent to your correspondence address. This letter contains all the information they need to make a claim to move to universal credit. You should not make a claim without it.

It is important to make a claim to universal credit by your migration notice letter deadline to protect your entitlement to transitional protection (financial protection for customers moving to universal credit) and continue to receive financial support beyond the letter deadline.

If you have not received a letter – as may be the case with homeless customers – or if you need support to make a claim, you should ring the free Move to Universal Credit helpline on 0800 169 0328 as soon as possible.

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If you do not have access to a telephone, you can visit your local Jobcentre Plus or visit a charity which supports customers to make an application. Citizens Advice offer help to claim here.

“Everyone” should be able to benefit from universal credit, said Timms. “And when we say ‘everyone’, we mean it – we don’t want anyone left behind.”

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