Universal Credit replace for claimants impacted by funds change

The DWP has provided an update about the new move to Universal Credit, with 2.3 million claimants sent migration notices between July 2022 and September 2025

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People on certain benefits need to move over to Universal Credit(Image: Getty)

The DWP has issued a crucial update regarding a payment shake-up that’s set to impact thousands of benefit recipients.

Conservative MP and Shadow Chancellor Mel Stride pressed the Government for details on the massive shift to Universal Credit, which is set to replace six existing benefits. The overhaul will see income-based Jobseekers Allowance, income-related Employment and Support Allowance, Income Support, Housing Benefit, Child Tax Credit and Working Tax Credit all scrapped in favour of the new system.

Currently, officials are prioritising the transfer of claimants solely on Employment and Support Allowance, plus those receiving both Employment and Support Allowance and Housing Benefit.

Anyone required to switch will receive a postal migration notice, providing a three-month window to submit their Universal Credit application before existing payments cease, reports the Mirror.

For more vulnerable claimants, the DWP offers additional assistance through what’s termed the enhanced support journey.

This comprehensive help can include telephone contact with claimants or even arranging home visits to facilitate the transition.

Mr Stride specifically enquired about the number of people transferred from Employment and Support Allowance to Universal Credit since July 2024.

DWP minister Sir Stephen Timms delivered the Government’s response, revealing a significant timeline: “This information will be published as part of a routinely released statistical series in February 2026.

Millions make the switch to Universal Credit

DWP data from November 2025 revealed that migration notice letters were dispatched to approximately 2.3 million individual claimants spanning July 2022 to September 2025. Among these recipients, roughly 1.8 million submitted Universal Credit applications.

The documentation states: “Legacy benefit customers receiving a migration notice are given a period of three months within which to claim. They may also be sent one or more reminders and the claim deadline may be extended.”

Out of all households that received migration notices by the end of May 2025, a substantial 85 per cent submitted claims for the replacement benefit, whilst 15 per cent failed to apply and consequently had their legacy benefits terminated.

What’s the Universal Credit rate?

The current monthly standard allowance for Universal Credit stands at:.

Additional sums may be available based on your circumstances, including if you’re dealing with a health condition or disability, or if you’re caring for children.

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