DWP claimants danger ‘monetary hit’ as 356,000 see advantages closed with three teams harm

The DWP is sending out an important letter setting out a deadline to take action

DWP benefit claimants are being warned they need to act or their payments could be stopped, which could cause “financial strain” for low-income families. Recently released data from the department reveals that 356,000 people on old benefits being replaced by Universal Credit had their benefits closed, despite being invited to move over.

The DWP is sending out letters to claimants, known as migration notices, urging people on six benefits, known as legacy benefits, to apply for Universal Credit. You usually get three months to apply, after which your old claim is ended and your payments stop.

But the figures showed that between July 2022 and December 2024, a total of 355,940 claimants “did not claim Universal Credit and have had their legacy benefit claims closed”. Legal analyst Damian Rourke, partner at Clyde & Co, warns people can be majorly affected if they lose out on their benefits.

He said: “For those who need support, losing benefits could cause significant financial strain, especially during the cost-of-living crisis, and if this is a result of confusion or a lack of clear communication, it runs a real risk of various people putting in claims down the line. The Government will need to examine whether the transition process is clear and accessible.”

He highlighted the hurdles many face in the application process, emphasising that it “isn’t straightforward”. He explained that the sign-up system could be a struggle for those with disabilities, mental health struggles or who don’t speak English fluently.

Mr Rourke explained why people may not successfully move over to Universal Credit: “Some may assume their benefits will continue automatically or may not realise the consequences of missing the deadline. Many people will also be hesitant. Some claimants may worry they could end up worse off under Universal Credit, which may put them off engaging with the process.”

Meanwhile, the government insists: “Legacy benefits – such as Tax Credits, Housing Benefit, Income Support, Jobseeker’s Allowance and Income-Related Employment and Support Allowance – are being phased out to bring Government financial support into one place and, importantly, the majority of people will not be worse off under Universal Credit.”

These are the six benefits being replaced by Universal Credit:

• Child Tax Credit
• Housing Benefit
• Income Support
• Income-based Jobseeker’s Allowance (JSA)
• Income-related Employment and Support Allowance (ESA)
• Working Tax Credit.

The DWP is focusing now on those receiving Employment and Support Allowance (ESA), in its effort to move people over. Mr Rourke raised concerns about the potential issues of transferring ESA claimants, pointing out: “ESA claimants often face additional challenges, so there is a risk that some may struggle to navigate the transition process.

“DWP has obligations under the Equality Act 2010 to ensure that the system is accessible to those with disabilities or mental health conditions.” He also discussed the possible wider consequences if claimants lose their benefits: “If large numbers of vulnerable claimants lose access to benefits, there could be wider implications, including increased pressure on support services.

“It might be helpful to explore whether more tailored support or clearer guidance could reduce the risk of people slipping through the net.” Neil Couling, senior responsible owner for Universal Credit, recently briefed MPs on the measures being taken to help ESA claimants.

He spoke about how DWP officials can visit claimant homes if no response is received to the invitation to move over. The DWP has stepped up its efforts, with the number of home visits now at 30,000 a month, doubling from the previous figure of 15,000.

A DWP spokesperson said: “We support millions of people through Universal Credit every year, and it remains a top priority for us to ensure they get the support they are entitled to. Claims are only stopped as a last resort – we write and follow up with eligible households to encourage them to apply for Universal Credit, and offer support throughout the migration process to ensure customers feel confident and well-informed.”

If you need a helping hand in making your claim, you can get independent support from Citizens Advice and its Help to Claim service. Advisors can help with filling in your application and checking that your first payment arrives correctly.