DWP Halts Benefits for 184,000 People Amid Major Universal Credit Overhaul

The Department for Work and Pensions (DWP) has faced criticism after halting benefits for 184,000 individuals who failed to transition from legacy benefits to Universal Credit by the given deadline. This development comes as part of a significant migration effort aimed at replacing six older welfare benefits with Universal Credit.

While nearly half of the targeted claimants have successfully transitioned, the termination of support for such a large number of people has sparked concern among policy experts and advocates.

Managed Migration

The DWP’s managed migration process involves moving recipients of six legacy benefits onto Universal Credit. These benefits include:

• Working Tax Credit
• Child Tax Credit
• Housing Benefit
• Income-Related Employment and Support Allowance (ESA)
• Income Support
• Income-Based Jobseeker’s Allowance (JSA)

Key Numbers:

• Total Migration Notices Issued: 824,050 (from July 2022 to March 2024).
• Successful Transitions: 400,940 individuals (49%), with 60% of households receiving transitional protection to maintain payment levels.
• Still Transitioning: 238,990 individuals (29%).
• Benefits Halted: 184,120 individuals (22%) missed the deadline and lost their benefits.

Benefits Stopped

When claimants are selected for migration, the DWP sends them a migration notice with a three-month deadline to apply for Universal Credit. If recipients fail to act within this timeframe, their existing benefits are terminated.

Expert Concerns

Tax expert Andy Wood has expressed alarm over the DWP’s approach, emphasizing the vulnerability of those who missed the deadline.

• Quote from Andy Wood:
  “The loss of benefits for many individuals is unacceptable. The DWP must prioritize well-being over meeting migration targets, ensuring no one is left without essential support.”

Need for Better Support

Many affected individuals are likely to be among society’s most vulnerable, including those with disabilities, mental health issues, or limited access to information. Advocates have called for:

• Improved Communication: Ensuring migration notices reach recipients and are easily understood.
• Additional Support: Offering one-on-one assistance to those struggling with the transition process.
• Empathy in Policy: Creating safety nets for individuals who miss deadlines.

Transitioned

Despite the challenges, nearly half of those issued migration notices—400,940 individuals—have successfully transitioned to Universal Credit.

• Transitional Protection:
  • 60% of transitioning households received transitional payments to ensure their benefit levels were maintained during the switch.
• Current Progress:
  • 238,990 individuals (29%) are still in the process of switching.

What Happens Next?

For those whose benefits have been stopped, the DWP has indicated that claims can be reinstated if individuals contact the department and successfully apply for Universal Credit. However, the delay in payments and the administrative hurdles can leave many without essential support for extended periods.

Moving Forward

The managed migration to Universal Credit highlights the need for a more empathetic and supportive approach to welfare reform. Critics argue that meeting migration deadlines should not come at the cost of leaving vulnerable individuals without support.

Recommendations:

1. Extend Deadlines: Allow additional time for those who miss the initial migration notice window.
2. Enhanced Outreach: Proactively assist individuals at risk of missing deadlines.
3. Transparent Communication: Simplify the process and ensure that recipients understand the steps required to transition.

As the DWP continues the migration process, addressing these issues will be essential to safeguarding the well-being of those who depend on the welfare system.

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