The DWP is in the process of sending final notifications to benefit recipients who will transition to Universal Credit. Universal Credit has replaced various older benefits for many UK households, such as Tax Credits, Income Support, income-based Jobseeker’s Allowance, and Housing Benefit. Those currently receiving income-related Employment and Support Allowance will also be moved to Universal Credit, with all remaining recipients expected to be contacted by September 2025.
The DWP aims to complete the “managed migration” to Universal Credit by March 2026. Individuals who have not yet transitioned will receive a migration notice by mail, providing a three-month period to shift to Universal Credit before their existing benefits cease.
According to the DWP, 55% of people will benefit more from Universal Credit, while 35% may see a decrease in benefits. For those experiencing a reduction, monthly transition payments will compensate for any shortfall until their Universal Credit award matches their previous benefits.
Transitional protection will be in place until the new Universal Credit amount aligns with the previous benefits received. However, individuals will only receive these transitional payments if they wait for the managed migration process.
It is essential to be aware that the first Universal Credit payment may take five weeks to arrive, although certain legacy benefits like income-related ESA will continue for an additional two weeks to bridge the gap.
Universal Credit comprises a standard allowance, which is the base payment before additional elements or deductions are factored in. For employed individuals, a taper rate of 55% is applied, reducing the Universal Credit payment as earnings increase. Some may qualify for a work allowance, allowing them to earn a set amount before their Universal Credit is reduced.
Various elements such as the child element, limited capability for work, carer element, work allowance, and childcare costs element are part of the Universal Credit system.