More than a quarter of claimants who are required to move to universal credit (UC) have not claimed UC and have had their tax credits stopped as a result, new analysis has revealed.
Under its ‘managed migration’ process, the Department for Work and Pensions (DWP) plans for the 1.8 million households who claim tax credits and other older benefits to be transferred to UC by the end of 2024-25.
After receiving a ‘migration notice’ from the DWP, claimants have three months to claim UC.
However, 28% of claimants who received a notice between November 2022 and March 2023 did not claim UC and had their benefit payments terminated by the DWP, the Child Poverty Action Group (CPAG) found.
A further 5% made a claim after their deadline.
CPAG chief executive Alison Garnham said: ‘An alarm is ringing loud and clear for the DWP – unless it gets more help to the families it’s migrating to UC, they could lose a financial lifeline.
‘We and many others warned all along that not every family would successfully claim UC within the deadline and that terminating their current benefits is draconian and potentially disastrous for the children concerned.’
A DWP spokesperson said: ‘We alert people three months before they need to move to Universal Credit and follow up with reminder letters and texts. Evidence shows most Tax Credit claimants have been able to claim Universal Credit without the need for additional support.
‘Extensions can be arranged for those who need more time to make a claim and support is available in local jobcentres and via a dedicated DWP helpline. Benefits are only ever stopped as a last resort after multiple unsuccessful attempts to engage with claimants.’
