Universal Credit payments AXED for 350,000 Britons in DWP overhaul
More than 350,000 households have seen their benefit payments terminated by the Department for Work and Pensions (DWP) as the Government continues its overhaul to Univeraal Credit.
Former benefit claimants are being penalised for not responding to official notices requiring them to switch to Universal Credit, according to newly released figures from the Government deparm
The statistics reveal that precisely 356,521 households lost their entitlements because they did not act on migration letters sent by the DWP. Those affected are forfeiting payments that average in excess of £1,000 monthly.
These notices were dispatched to households still receiving what are termed legacy benefits, which encompass tax credits, income support, jobseeker’s allowance, employment and support allowance, and housing benefit.
300,000 Britons have lost their Universal Credit
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The Labour Government has set an end-of-March 2026 target for completing the transition of all legacy benefit recipients onto the Universal Credit system.
Since the managed migration programme commenced in July 2022, the DWP has dispatched notices to 2.3 million households. Of these, 1.9 million have completed their switch successfully, whilst approximately 10,000 remain in the process of transferring.
Recipients who have their legacy payments closed retain the option to apply for universal credit at a later date, though they forfeit guaranteed transitional protection.
This safeguard ensures that those who complete the managed migration will not experience any reduction in their overall payment amounts.
Clive Miller took conned taxpayers out of £40,000 and is still claiming universal credit | GETTY
The number of unemployed people per job vacancy is at a new post-pandemic high | GB NEWSWelfare specialists are encouraging anyone who receives a migration letter to respond promptly to avoid missing out on financial protections.
Conor Lawlor, a benefit specialist at Turn2Us, said: “If someone gets a managed migration letter now, they should make a claim for Universal Credit before the deadline in their letter to ensure they get transitional protection.”
He added: “They should already be going through the enhanced support journey, so the DWP will be in touch with them if there’s no response following a notice being issued. If they need additional support with their claim, they should use the Turn2us find an adviser tool.”
Claimants have a three-month window to submit their universal credit application after receiving notification.
The DWP is carrying out a massive overhaul
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PAWhere no response arrives within 11 weeks, the DWP initiates an enhanced support journey involving additional correspondence and potentially home visits.
Research published by the DWP this week identified several reasons why claimants fail to act on their migration notices.
However, the DWP has confirmed this savings threshold will be waived for 12 months for those undergoing managed migration.
A DWP spokesperson said: “It is important people respond to the letter asking them to make the move to Universal Credit in order to continue receiving benefits.”
