The Department for Work and Pensions (DWP) is in the process of sending final notifications to benefit recipients who are transitioning to Universal Credit this month. Universal Credit has replaced various older benefits for many UK households, including Tax Credits, Income Support, income-based Jobseeker’s Allowance, and Housing Benefit.

While most individuals have already made the switch, there are still some claimants receiving income-related Employment and Support Allowance (ESA) who are yet to be transferred. The DWP aims to conclude the “managed migration” to Universal Credit by March 2026, with all remaining claimants expected to be contacted by September 2025.

Claimants who have not transitioned will receive a “migration notice” by mail, providing a three-month period to move to Universal Credit; otherwise, their existing benefits will cease. The DWP estimates that 55% of individuals will see financial improvements on Universal Credit, 35% will experience a decrease, and the rest will have no change. Those facing a reduction will receive monthly transition payments to offset the shortfall until their new Universal Credit award aligns with their previous benefits.

It is crucial to wait for the managed migration process to receive transitional payments. Upon transitioning, there is a five-week waiting period for the first Universal Credit payment, although certain legacy benefits, such as income-related ESA, may continue for an additional two weeks to bridge the gap.

Universal Credit consists of a standard allowance, which serves as the base amount before factoring in additional elements like childcare or incapacity for work, as well as any deductions. For employed individuals, there is a taper rate of 55%, where £1 of earnings reduces the maximum Universal Credit payment by 55p. Some may qualify for a “work allowance,” allowing them to earn a set amount before their Universal Credit is affected, with values differing based on housing assistance status.

The benefit elements under Universal Credit include the standard allowance, child element, limited capability for work, carer element, work allowance, and childcare costs element.