Hundreds of thousands of people on older-style benefits are being moved over to Universal Credit by the Department for Work and Pensions (DWP).

The so-called “managed migration” process is being done in stages, with “migration notices” being sent to anyone who will be affected. Once you have received this letter, you then have three months to move over to Universal Credit before your existing benefits are stopped.

Around 120,000 households claiming Tax Credits with Housing Benefit received their “migration notice” in April, which means they’ll need to make this switch to Universal Credit this month. Meanwhile, 110,000 people claiming Income Support also started receiving their letters in April, so will have to make the move to Universal Credit.

Those claiming Housing Benefit only should have received their “migration notice” in June, while anyone claiming Income-related Employment Support Allowance with Child Tax credits will be contacted this month. Universal Credit is replacing six older legacy benefits for two million Brits.

Most people are expected to be moved over by the end of March 2025, but people who get Employment and Support Allowance (ESA) and don't get Tax Credits will be transferred to Universal Credit by 2028. The benefits being replaced are:

  • Working Tax Credit

  • Child Tax Credit

  • Income-based Jobseeker’s Allowance (JSA)

  • Income Support

  • Income-related Employment and Support Allowance (ESA)

  • Housing Benefit

But not everyone will be better off on Universal Credit. The DWP claims 55% of people will get more money on Universal Credit, while 35% will be worse off and the rest will see no change. If you are going to be worse off, the DWP will award you transitional payments to cover any financial shortfall.

This transitional protection lasts until there is no difference between the amount awarded under Universal Credit and what you received before under legacy benefits. But you'll only receive these top-ups if you're moved over as part of the so-called "managed migration" process - so if you've received a letter telling you you're being transferred to Universal Credit.

You should always seek expert advice first from Citizens Advice or another registered organisation before switching to Universal Credit, as once you make the move, you can’t go back to your old benefits.