As the Department for Work and Pensions (DWP) pushes forward with its Universal Credit managed migration plan, the latest figures reveal what the Canary warned about nearly two years ago: that 24% of people on legacy benefits end up losing their support entirely, thank to the Universal Credit regime.
DWP chaos under Universal Credit managed migration
This initiative, which commenced officially in July 2022 following a pilot programme in 2019, aims to shift all legacy benefit claimants to Universal Credit by March 2026. However, the rush to implement these changes has stirred concerns over the welfare and financial security of the claimants involved.
Over 400,000 households on income-related Employment and Support Allowance (ESA) are now being urged to migrate to Universal Credit, with the DWP increasing the number of migration notifications sent monthly to 83,000.
Yet, the stark reality is that failure to act within the three-month timeline given upon receiving a letter may result in significant financial hardship. Recent data shows that 381,440 individuals have already lost their benefits. This is 24% of people the DWP has sent migration notices to.
The Canary predicted in 2023 that this figure would be the case – a prediction the DWP dismissed at the time. We also predicted that it would be mostly women affected. Again, this is exactly what has happened.
Compounding existing issues
The urgency of the DWP’s managed migration method is underscored by the staggering figures: while 200,000 claimants have successfully made the switch to Universal Credit, approximately 400,000 remain at risk of losing their vital income if they do not comply with the migration process.
The DWP previously aimed for a slow-paced migration, with a target completion date set for 2028, but this has now been moved up to just three years away.
Compounding the issue, the DWP has recently ceased new claims for several legacy benefits, including Tax Credits and Income Support, further complicating the situation for those caught in the midst of this dramatic overhaul.
Households on these benefits can currently opt to transition voluntarily; however, many fear that they may not be better off under Universal Credit. Once initiated, this move cannot be undone, leaving claimants in a precarious position should they find themselves worse off financially.
Moreover, specific groups, especially those living with mental health issues, often face additional hurdles in this already complex scenario.
Advocacy from the Money and Mental Health Policy Institute calls for tailored support, emphasising that the current processes do not adequately account for the unique challenges faced by these individuals. Improved communication from the DWP is essential to ensure that all claimants understand their rights and the vital steps required to safeguard their income.
Universal Credit: still not fit for purpose
The lived experiences of these claimants cannot be ignored. Many report feeling overwhelmed and confused, often exacerbated by the strict time limits imposed by the DWP. With the threat of losing their much-needed financial support hanging over their heads, the stress of adapting to a new benefits system can take a severe toll on their mental wellbeing.
As the managed migration deadline looms, it becomes increasingly apparent that without significant improvements to the support structure, countless vulnerable individuals risk losing their financial safety net entirely.
The DWP must step up to ensure that no one is left behind in this poorly managed transition. As the landscape of benefits shifts under the weight of bureaucracy, the voices of claimants must be amplified to demand accountability from the government.
Featured image via the Canary
