A GOVERNMENT minister has urged tens of thousands of benefit claimants to act or risk losing their payments permanently.
The alert comes as the government continues the process of transferring all legacy benefit claimants to Universal Credit through a system known as managed migration.
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Individuals still receiving child working tax credits must make the switch before the end of the month.
That’s because all tax credit accounts will be closed permanently on April 5.
Sir Stephen Timms MP, minister for social security and disability, told Sun readers: “With one month to go until tax credits close, it is really important people respond to the letter asking them to make the move to Universal Credit and continue receiving benefits.
“Some of our customers have told us it only took them an hour to do.”
The managed migration process officially began back in July 2022 after a successful pilot in July 2019.
Since then, households receiving one of six legacy benefits, including tax credits, have been receiving postal notifications with instructions on how to transition from tax credits to Universal Credit.
Upon receiving the letter, you have up to three months to make the transition.
Failing to do so could result in the loss of your current benefits.
With less than a month remaining until the government officially closes all tax credit accounts, it is crucial for the remaining 91,000 households still on the benefit to take action before April 5 to avoid losing their entitlements.
Minister’s plea to Sun readers in full
MINISTER for Social Security and Disability, Sir Stephen Timms MP, told Sun readers:
“With one month to go until tax credits close, it is really important people respond to the letter asking them to make the move to Universal Credit and continue receiving benefits.
“Some of our customers have told us it only took them an hour to do.”
“And for households making the move, help is at hand – including through our dedicated helpline, guidance on gov.uk, and the Citizen’s Advice’s free and independent Help to Claim service, backed by £55million of government money since 2023.
“It’s not just tax credits that are closing.
“Old legacy benefits – such as income-related employment support allowance and jobseeker’s Allowance – are being phased out and replaced with the modern Universal Credit which encourages moving into employment and progression at work.
“Work really is key to health and wealth, which is why we’re getting Britain working again – unlocking work, boosting living standards, and growing the economy – as we deliver our Plan for Change.
“So respond to your migration notice today. It will give you peace of mind, and ensure you continue to receive your entitlement.”
A WORD OF WARNING
Between July 2022 and December 2024, the Department for Work and Pensions (DWP) sent almost 1.6million migration notices.
However, according to the DWP’s latest figures, 355,940 individuals lost their benefits after failing to act on migration notices received between the period.
That’s why it’s vital to act on your migration notice before the deadline stated in your letter.
Some 1.1million individuals have since made successful claims for Universal Credit, and another 174,576 are still in the process of transitioning.
Which benefits are stopping?
UNIVERSAL Credit is replacing six benefits under the old welfare system, commonly called legacy benefits. They are:
- Working tax credit
- Child tax credit
- Income-based jobseeker’s allowance
- Income support
- income-related employment and support allowance
- Housing benefit
If you’re on any of these benefits now, you can choose to move over – but you might not be better off.
You should consider carefully what moving over means for your money, as you can’t move back once you’re on Universal Credit.
Using an online benefits calculator, which is free and easy to use from charities such as Turn2Us and EntitledTo, can help you compare.
You may be moved to Universal Credit if your circumstances change, such as moving home, changing your working hours, or having a baby.
But eventually, everyone will be moved over to Universal Credit under the managed migration process.
HELP CLAIMING UNIVERSAL CREDIT
As well as benefit calculators, anyone moving from tax credits to Universal Credit can find help in a number of ways.
You can visit your local Jobcentre by searching at find-your-nearest-jobcentre.dwp.gov.uk/.
There’s also a free service called Help to Claim from Citizen’s Advice:
- England: 0800 144 8 444
- Scotland: 0800 023 2581
- Wales: 08000 241 220
You can also get help online from advisers at citizensadvice.org.uk/about-us/contact-us/contact-us/help-to-claim/.
Will I be better off on Universal Credit?
ANALYSIS by James Flanders, The Sun’s Chief Consumer Reporter:
Around 1.4million people on legacy benefits will be better off after switching to Universal Credit, according to the government.
A further 300,000 would see no change in payments, while around 900,000 would be worse off under Universal Credit.
Of these, around 600,000 can get top-up payments (transitional protection) if they move under the managed migration process, so they don’t lose out on cash immediately.
The majority of those – around 400,000 – are claiming employment support allowance (ESA).
Around 100,000 are on tax credits, while fewer than 50,000 each on other legacy benefits are expected to be affected.
Those who move voluntarily and are worse off won’t get these top-up payments and could lose cash.
Those who miss the managed migration deadline and later make a claim may not get transitional protection.
The clock starts ticking on the three-month countdown from the date of the first letter, and reminders are sent via post and text message.
There is a one-month grace period after this, during which any claim to Universal Credit is backdated, and transitional protection can still be awarded.
Examples of those who may be entitled to less on Universal Credit include:
- Households getting ESA and the severe disability premium and enhanced disability premium
- Households with the lower disabled child addition on legacy benefits
- Self-employed households who are subject to the Minimum Income Floor after the 12-month grace period has ended
- In-work households that worked a specific number of hours (e.g. lone parent working 16 hours claiming working tax credits
- Households receiving tax credits with savings of more than £6,000 (and up to £16,000)
Either way, if these households don’t switch in the future, they risk missing out on any future benefit increase and seeing payments frozen.
