The benefits being completely moved to universal credit next year

Here's what to do when you receive a migration notice from the DWP, and what benefits are scheduled to be transferred to UC in 2025.

Jasmine Andersson
Updated ·4 min read
Exterior signage of UK government building with people walking past
By 2025, everyone receiving a "legacy benefit" should expect to have their claim moved to UC.

The government's plans to move every benefit payment to the universal credit system has been outlined for the year ahead.

By 2025, everyone receiving a "legacy benefit" — a benefit that is not universal credit — should expect to have their claim moved to universal credit.

The process known as migration, was introduced to simplify the benefits system.

If you are waiting to hear from the government about your benefits claim being switched across and what it means for you, here's what you need to know.

A migration notice is sent by the government to let you know you're in line for your benefit payments to be moved to universal credit.

ADVERTISEMENT

Look out for a letter called a ‘universal credit migration notice’ from the DWP, charity and benefit experts Turn2Us advise.

Tax credit claimants will receive this letter from the DWP with a HMRC logo, or from the department for communities if you live in Northern Ireland.

This notice letter is important as it will tell you that your existing benefits are stopping, and you need to make a claim for universal credit. It will also tell you what you need to do and by when.

It’s important to follow the instructions in the letter, otherwise your benefits will stop by the deadline referenced.

You might get a leaflet telling you to get ready for universal credit – if the letter you get doesn't have a deadline on it, it isn't your migration notice. Wait until you get a proper migration notice before taking action.

Before universal credit was introduced, people claimed several different benefits according to their needs through the DWP.

ADVERTISEMENT

In 2013, universal credit was brought in by the Conservative government, who said that moving every benefit under one single system would make the process easier to claim, and easier for the government to organise.

The aim is that by the end of 2025, all benefits will make up a single monthly payment. Every recipient will qualify for a standard allowance, and then receive additional money according to different 'elements'.

It is broken down into:

  • Standard allowance: the basic amount you receive, which depends on your age and whether you have a partner

  • Elements: additional payments that you may receive based on your circumstances, such as caring for children, paying for childcare, or having housing costs

  • Housing element: if your payment includes help with housing costs, you can choose to have the money paid directly to your landlord or to you

The usual deadline to claim universal credit is three months from the date you received your migration letter.

ADVERTISEMENT

If you cannot make your claim for universal credit by the date in the letter, you can ask the DWP for an extension, Turn2Us advises. You can call the universal credit migration notice helpline on 0800 169 0328. You can only get an extension before your deadline.

If you miss your deadline, you can still get transitional protection if you claim universal credit within a month after the deadline. The end of that month is known as the ‘final deadline’.

Transitional protection ensures people moving over to universal credit who are entitled to less money in the new system will not be financially worse off than they were on legacy benefits.

This protection is only available to people who have received a migration notice and claim by the deadline date on their letter or people who have severe disability premium — extra payments to help with the additional costs of being disabled — in their legacy benefits.

Transitional protection may reduce or stop over time when you have a change of circumstances.

ADVERTISEMENT

If you make a claim after the final deadline, you can still claim universal credit, but you won’t be eligible for transitional protection.

This year, anyone receiving these benefits will have been migrated to universal credit:

  • April 2024: Income support, housing benefit, and tax credits with housing benefit

  • June 2024: Households receiving housing benefit only, excluding those in temporary or supported accommodation

  • July 2024: Households receiving employment support allowance with child tax credits

  • August 2024: Households receiving tax credits and over pension age

  • September 2024: Households receiving job seekers allowance (income based) with housing benefit, and households receiving employment support allowance without child tax credits.

The following benefits will be migrated over the course of 2025:

  • Tax credits: Working tax credit and child tax credit

  • Income support

  • Income-based jobseeker's allowance (JSA)

  • Income-related employment and support allowance (ESA)

  • Housing benefit: For working age people, unless you're in supported or temporary accommodation

By December 2025, everyone on a legacy benefit should have received a migration notice so they can be transferred to universal credit.

Latest Stories

  • 1 Incredible Dividend Stock Canadian Investors Should Buy While Down 19%

    This dividend stock may be down, but don't count it out if you're looking for long-term income and stable returns. The post 1 Incredible Dividend Stock Canadian Investors Should Buy While Down 19% appeared first on The Motley Fool Canada.

  • Got $14,000? Turn Your TFSA Into a Cash-Gushing Machine

    If you're looking for passive income, there is one solid stock growing now, with even more to come. The post Got $14,000? Turn Your TFSA Into a Cash-Gushing Machine appeared first on The Motley Fool Canada.

  • Canadian dollar posts biggest decline among G10 currencies

    The Canadian dollar weakened against its U.S. counterpart on Thursday and bond yields eased, as investors braced for expected U.S. trade tariffs and the Bank of Canada said it would end its quantitative tightening program in the coming months. The loonie was trading 0.4% lower at 1.4392 per U.S. dollar, or 69.48 U.S. cents, after trading in a range of 1.4323 to 1.44. U.S. President-elect Donald Trump takes office on Monday and has threatened to impose a 25% tariff on imports from Canada as well as Mexico.

  • Time to Buy This Canadian Stock That Hasn’t Been This Cheap in Years

    This dividend stock may be down, but certainly do not count it out, especially as it holds a place in Canada that cannot be replaced. The post Time to Buy This Canadian Stock That Hasn’t Been This Cheap in Years appeared first on The Motley Fool Canada.

  • Billionaires Are Selling Amazon Stock and Buying This TSX Stock in Bulk

    These two tech stocks are both heavily into e-commerce and artificial intelligence, but one simply has more room to grow than the other. The post Billionaires Are Selling Amazon Stock and Buying This TSX Stock in Bulk appeared first on The Motley Fool Canada.

  • Here’s Why BlackBerry Limited (BB) Is Skyrocketing

    We recently published an article titled Why These 10 Small-Cap Stocks Are Skyrocketing. In this article, we are going to take a look at where BlackBerry Limited (NYSE:BB) stands against the other small-cap stocks. Wall Street is increasing its bet on small-cap stocks, suggesting that the sector will potentially outperform in 2025. The reasons behind this […]

  • 3 Stocks Estimated To Be Trading Up To 49.4% Below Intrinsic Value

    As global markets navigate a turbulent start to the year, characterized by resilient labor data and persistent inflation concerns, investors are left grappling with uncertainty. Amidst these fluctuations, value stocks have shown relative resilience compared to their growth counterparts, sparking interest in identifying stocks that may be trading below their intrinsic value. In such an environment, a good stock is often one that demonstrates strong fundamentals and potential for growth despite...

  • Buy 4,167 Shares of 1 Dividend Stock, Create $325/Month in Passive Income

    This dividend stock has one strong outlook. Right now could be the best time to grab it while it offers sky-high dividends. The post Buy 4,167 Shares of 1 Dividend Stock, Create $325/Month in Passive Income appeared first on The Motley Fool Canada.

  • 2 Brilliant Growth Stocks to Buy Now and Hold for the Long Term

    Are you looking for value on the TSX? Here are two growth stocks trading at must-buy prices. The post 2 Brilliant Growth Stocks to Buy Now and Hold for the Long Term appeared first on The Motley Fool Canada.

  • House Budget Republicans eye more than 200 spending cuts, tax changes for major bill

    Republicans on the House Budget Committee are considering more than 200 potential budget cuts, tax breaks, tariffs and changes to programs like Medicare and Social Security in preparation for their wide-ranging reconciliation bill expected this year, according to a document shared with The Hill. The smorgasbord of policy options is broken down by committee, and…

  • 2 No-Brainer Growth Stocks to Buy Right Now for Less Than $500

    Both of these top Canadian stocks have impressive track records and years of growth potential, making them two of the best to buy now. The post 2 No-Brainer Growth Stocks to Buy Right Now for Less Than $500 appeared first on The Motley Fool Canada.

  • Keep it Simple, Canada: Invest in the S&P 500 Index With This Affordable ETF

    Sometimes, simple is better, especially for beginner investors. The post Keep it Simple, Canada: Invest in the S&P 500 Index With This Affordable ETF appeared first on The Motley Fool Canada.

  • Canada a ‘Good Place to Hide’ If US Stocks Drop, Contrarian Says

    (Bloomberg) -- Canada’s stock market — where returns have lagged the US for two straight years — might offer investors protection against a downturn in US stocks, a Toronto-based asset manager says.Most Read from BloombergThese Homes Withstood the LA Fires. Architects Explain WhyNYC Commuters Get New Way to Dodge Traffic: $95 Helicopter RidesScaramucci, Ackman Donate to Whitney Tilson’s NYC Mayoral RunIn a City of Sprawl, Wildfire Evacuation Is Getting HarderWill Americans Ever Lose Their Taste

  • Bank of Canada could have been clearer about pandemic measures: review

    OTTAWA — Extraordinary measures taken by the Bank of Canada during the pandemic could have been communicated more clearly, an internal review has found, including an explanation of how the actions would be wound down after the crisis.

  • 1 Copper Stock Down 27% to Buy Immediately

    When it comes to future favourites, look for companies that are valuable, pay dividends, and have a strong outlook -- like this one. The post 1 Copper Stock Down 27% to Buy Immediately appeared first on The Motley Fool Canada.

  • Build Lasting Wealth: 3 Long-Term Tips and Stocks to Buy and Hold

    There may be just three tips mentioned today, but there is an endless amount of stocks investors can pick up to match. The post Build Lasting Wealth: 3 Long-Term Tips and Stocks to Buy and Hold appeared first on The Motley Fool Canada.

  • TSX Penny Stocks: 3 Picks Under CA$60M Market Cap

    As the Canadian market navigates a landscape marked by shifting political regimes and fluctuating bond yields, investors are reminded of the importance of fundamentals over headlines. Amidst this backdrop, penny stocks—though an outdated term—remain a relevant investment area, highlighting smaller or less-established companies that can offer growth opportunities. By identifying those with robust financials and potential for expansion, investors may uncover promising prospects in this niche...

  • 2 Dividend All-Stars Trading at Boxing Day Prices

    Consider Restaurant Brands International (TSX:QSR) and another top dividend play going into February. The post 2 Dividend All-Stars Trading at Boxing Day Prices appeared first on The Motley Fool Canada.

  • Bitcoin Is Surging: 3 Pros and 2 Cons of Investing In the Cryptocurrency Now

    Bitcoin has been making headlines again -- hitting record highs and catching the attention of investors everywhere. However, with its widely fluctuating performance, it's natural to wonder if bitcoin...

  • Got $10,000? 1 Dividend Stock for $56 in Monthly Passive Income

    This dividend stock is a great jumping-off point, but there are still a few considerations if you're looking for safe monthly income. The post Got $10,000? 1 Dividend Stock for $56 in Monthly Passive Income appeared first on The Motley Fool Canada.