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Just as Labour announced £6bn cuts, the DWP reveals it’s stripped 170,000 kids of benefits

Universal Credit disaster

Steve Topple by Steve Topple
11 March 2025
in Analysis
Reading Time: 3 mins read
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The Labour Party government has announced potential cuts to Department for Work and Pensions (DWP) benefits of up to £6bn. The news has been met with a furious response from many. However, days before the announcement the DWP released new figures on people moving from old benefits onto Universal Credit. They show that, far from protecting people, the DWP is ensuring that hundreds of thousands of people actually lose out – including over 170,000 children.

Universal Credit: managed migration disaster

The DWP began rolling out managed migration in July 2019, as a pilot scheme. This is where the department forces people who have not yet moved to Universal Credit, either voluntarily or because of a change of circumstance, onto it. This is because the new benefit is replacing old ones like Tax Credits.

Then, the coronavirus (Covid-19) pandemic hit, so the DWP had to pause its work on managed migration. In June 2022, it said that it was aiming to get everyone on old benefits onto Universal Credit by 2024.

The DWP started writing to people in July 2022. It sent them “migration notices”, telling them they needed to move to Universal Credit. In August 2023, the Canary crunched the first set of figures the DWP released around this.

We found that, at the time,

  • 82% of all managed migration claimants were women, nearly all of whom were previously claiming tax credits.
  • 24% of people’s claims were closed, presumably leaving them with no benefits at all.
  • Of these, around 79% were women.

Fast forward to December 2024 and the latest figures show little has changed.

The DWP: stripping 160,000 kids of benefits

The latest DWP data shows that 22% of people lost their benefits due to Universal Credit’s managed migration – in total, over 330,000 people/222,000 households. The majority of these were households with children (135,000) who claimed both Child Tax Credit and Working Tax Credit.

The data shows, overall, that when you put all the different benefit combinations together, the DWP has stripped at least 170,000 children of their parent’s benefits. Also, the majority of people losing out were women.

Yet, this was all so predictable.

The Canary and the Child Poverty Action Group (CPAG) have been raising the alarm about managed migration since August 2023. At the time, we said that around 24% of people would lose their entitlements.

However, the DWP disagreed and shot us down. It told the Canary at the time that the figures weren’t representative of how managed migration would eventually pan out overall.

This is, we can now see, demonstrable bollocks.

Universal Credit: still a disaster

The DWP’s aggressive approach to Universal Credit managed migration has drawn significant criticism. The rapid transition – juxtaposed with austerity measures – suggests a systemic prioritisation of cuts over the provision of necessary support.

The complexities surrounding benefits and the urgent deadlines for transitioning only serve to compound the difficulties faced by many claimants, leading to an increasingly convoluted navigation of the benefits landscape.

Of course, the Labour Party knows all this. However, it views benefit claimants as somehow lesser than ‘working people’. Yet the DWP’s own data shows that most of the people losing out in the move to Universal Credit were indeed working.

It remains to be seen what has happened to the 170,000 children and their families now they’ve been stripped of their entitlements. Of course, to the DWP and Labour – they’ve saved money, so it’s a win-win.

Featured image via the Canary

Tags: chronic illnessDepartment for Work and Pensions (DWP)disabilityuniversal credit
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Comments 1

  1. budgie_kins says:
    1 year ago

    The arbitrary dichotomy ‘hard-working people’ and ‘benefits scroungers’ is not supported by fact. Yet Labour uses this fantasy as part of a dangerous rhetoric to divide the electorate into ‘deserving’ and ‘undeserving’. By telling some voters they are ‘deserving’, Labour hopes to secure their support. By telling others, they and their votes do not matter, Labour is abandoning that part of the electorate. If we examine the ‘hard-working, deserving’ sector of the electorate, we find many of those identify as ‘natural Tory voters’ and they are not likely to vote Labour if the Tories ever reorganise into an electable political party (I would not discount the Tory ability to rise again like a phoenix from its own ashes, it haunts Britain like rust in a caravan park). Thus Labour is trying to flatter voters who will most likely vote Tory. As for the despised ‘scrounging’ others, most of whom are indeed hard working yet need benefits because they are so low paid or overcharged for essential services such as housing, they feel that Labour offers them nothing but contempt. Such voters have nowhere to go except ‘new political parties’ and for many that means Reform and the largely US-led dark enlightenment and similar Far-Right authoritarian political movements. When they are pushing an end to democracy, what does Labour actually gain? Is Labour going to try to be the British GOP and pull a coup here rather than leave it to the Tories or Reform? What exactly is the forward planning by Labour? Is there any?!?

    Every time Labour uses this ‘them and us’ rhetoric, they lose votes to Tories and Reform and to something even worse lurking post-democracy on the Far-Right. Occasionally, they will push voters Left and promote the Greens or relatively Far-Left groups (e.g. TUSC, if they still put up candidates?) or independents (e.g. ex-Labour politicians ousted by Starmer or who resigned in protest over principles like refusing to tolerate genocide). I wonder if they ever actually gain a single vote. Labour are a prime example of the principle that ‘divide does not always mean you conquer’ sometimes you divide your support and you get conquered.

    Despair over the utter stupidity of Labour, the total absence of political nous or winning instincts, is why I cancelled my Labour Party membership and now vote Green or independent. Yes, Labour won a landslide but only because voters wanted rid of the Tories, not because they wanted anything Labour offered – because, frankly, Labour offered nothing but more of the same under new branding, new talking heads on the news. I suspect most voters behaved like brexit voters i.e. voted for their hopes not the reality. Which is why ‘buyer’s remorse’ and Labour’s record level of unpopularity has quickly set in. They voted for ‘unicorns and sunlit uplands’, they voted for radical change, and ignored anything which warned them this was not on offer. Now Starmer offers only more austerity and a Labour version of ‘the nasty party’ and the voters are enraged and will not give Labour another chance. And Labour is doing nothing to deserve another chance – they cannot provide unicorns and rainbows but they could ease back on the austerities and vicious attacks on the vulnerable and try to unite the nation around principles like compassion and community, try to rebuild a nation after Tory ruin. Nope, Starmer and Reeves prefer warmed-over Thatcherism with a side of Osborne austerity, now with extra savage cuts, cruel enough to make your eyes water.

    This nation needs new political activism from the Left. I said Momentum should have just become its own party. But that energy was wasted and now what have we got to put up a challenge to Starmer?

    Reply

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