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Universal Credit switch warning for 400,000 households after 380,000 have benefits stopped by ignoring key letter
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THOUSANDS of households on Universal Credit are being warned not to ignore a key letter.
The warning comes as the government progresses with its plans to transfer all legacy benefit claimants onto Universal Credit, through a process referred to as "managed migration."
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The managed migration process officially began back in July 2022 after a successful pilot in July 2019.
Since then, households receiving one of five legacy benefits, have been receiving postal notifications outlining the steps required to transition to Universal Credit.
Upon receiving a migration letter, claimants are given up to three months to make the switch.
Failure to act within this timeframe could result in the loss of existing benefits.
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The latest data from the Department for Work and Pensions (DWP) shows that 381,440 individuals lost their benefits after failing to act within this time frame.
Around 400,000 more households receiving income-related employment and support allowance (ESA) are now being urged to make the move to Universal Credit.
ESA provides financial support for those unable to work due to illness or disability.
Initially, the government planned to transfer all ESA claimants to Universal Credit by the end of 2028.
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However, this deadline was brought forward to March 2026.
To date, 200,000 claimants have successfully transitioned to Universal Credit, leaving approximately 400,000 still to make the switch.
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Last week, The Sun revealed that the DWP is increasing the number of migration notices sent each month to 83,000.
The DWP has already closed new claims for four legacy benefits - tax credits, income support, income-based jobseeker's allowance, and housing benefit.
This stepped-up approach means the DWP aims to have contacted all remaining legacy ESA claimants by September 2025
The move is designed to provide households with sufficient time to successfully transition to Universal Credit before the March 2026 deadline.
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 .
There's also a free service called Help to Claim from Citizen's Advice:
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- England: 0800 144 8 444
- Scotland: 0800 023 2581
- Wales: 08000 241 220
You can also get help online from advisers at .
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.
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