The Department for Work and Pensions (DWP) is currently undergoing a significant transition, phasing out some older benefits to make room for universal credit. It is important to clarify that not all welfare payments will be impacted by these changes. The DWP’s ongoing operation, known as “managed migration,” involves moving over two million individuals onto universal credit gradually, with claimants receiving notifications in stages rather than all at once.
Claimants will receive a “migration notice” by post when it is their turn to begin their universal credit claim, allowing a three-month period to make the transition before their existing benefits cease. The Mirror reports that by the end of December 2025, the DWP aims to have reached out to all affected parties. However, not all benefits will be discontinued as part of the managed migration process.
Six benefits in total will be replaced by universal credit: Working tax credit, Child tax credit, Income-based jobseeker’s allowance (JSA), Income support, Income-related employment and support allowance (ESA), and Housing benefit. For those receiving other benefits such as pension credit, child benefit, personal independence payment, carer’s allowance, or attendance allowance, their payments will continue as normal. Those receiving new-style benefits like new-style employment and support allowance or new-style jobseeker’s allowance will not be required to switch to universal credit.
If a person claiming tax credits is of state pension age or part of a mixed-age couple with different pension statuses, the DWP will ask them to apply for universal credit or pension credit. Some individuals, such as those of state pension age or living in specific accommodation, may still be eligible to receive housing benefit. The DWP estimates that 55% of people will be better off on universal credit, 35% will be worse off, and 10% will see no change.
It is advisable to use free benefit calculators such as Policy in Practice, entitledto, or Turn2us to assess potential benefits accurately before making any switches. Applications for Universal Credit can typically be made on the gov.UK website, where claimants must be aware that once the claim is submitted, working tax credit or child tax credit will stop immediately, while other benefits continue for an additional two weeks.
In cases where individuals are transitioned to universal credit through managed migration and face a financial shortfall, they will receive monthly transition payments until their total universal credit amount matches what they previously received under legacy benefits. It is recommended to seek expert advice before switching to universal credit to ensure an informed decision.