Universal Credit Migration Notice letter – what you need to know

Benefit claimants who are yet to make the switch to Universal Credit are being urged by the government to move or risk losing access to their benefits.

The Universal Credit rollout is picking up pace, with the government now in the 'managed-migration' phase. This involves sending out ‘Migration Notice’ letters to everyone still claiming legacy benefits, including tax credits.

If you receive one of these letters, then you must apply for Universal Credit by the date shown on the letter or you will lose your financial support.

Here, Which? explains which benefits are impacted, when you can expect a Migration Notice letter, how much you may be entitled to and how to time your claim around the new tax year.

Which benefits are being migrated?

Universal Credit has slowly been introduced across the UK to replace six older types of benefits and tax credits including:

• Child tax credit
• Working tax credit
• Housing benefit
• Income Support
• Income-based Jobseeker’s Allowance (JSA)
• Income-related Employment and Support Allowance (ESA)

Other benefits, such as Personal Independence Payment (PIP), will stay the same.

The government plans to move all households claiming these older benefits across to Universal Credit by the end of 2024.

• Find out more: what is Universal Credit?

Who will receive a letter and when will it arrive?

Anyone still on one or more of these legacy benefits should receive a Migration Notice letter.

Around 1.7 million households were still in receipt of legacy benefits in November 2023, according to the Department for Work and Pensions (DWP).

In 2023-24, migration notices are being sent to over 500,000 households getting tax credits only.

The DWP then plans to contact the 440,000 households that claim tax credits and also receive other legacy benefits, as well as all claimants of Income Support, income-based Jobseeker’s Allowance (JSA), and housing benefit, by September 2024.

The migration of claimants of income-related Employment and Support Allowance (ESA) only, or incomed-related ESA and housing benefit, which impacts around 600,000 households, has been delayed until 2028-29.

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How much Universal Credit will I get?

The amount of Universal Credit you get normally depends on your circumstances, such as how much you earn, whether you have any savings, whether you have children or other dependents, are disabled or have a health condition, care for a disabled person or need help with housing payments.

In April 2022, the DWP estimated that 55% of the remaining households on legacy benefits would have a higher entitlement on Universal Credit, and 35% would have a lower entitlement. 

If you have a lower entitlement, you will be eligible for ‘transitional protection payments’ – a top-up that will make up the difference if your Universal Credit entitlement is less than your previous tax credits or benefits. You can only get this additional amount if you have received a Migration Notice and claim by the deadline date on your letter.

Special rules for tax credit claimants and students

There are special rules for two groups who would not normally qualify for Universal Credit: people moving from tax credits with more than £16,000 in savings, and students. However, after 12 months, normal eligibility rules will apply.

So if you make your Universal Credit claim after you receive the Migration Notice and before the deadline date, you'll still be eligible for Universal Credit – even if you have savings over £16,000 or you are currently a student. 

• Find out more: how much Universal Credit will I get? 

How long will I have to apply for Universal Credit?

You must apply for Universal Credit by the deadline shown on the letter, which should be three months from the date the letter was sent out.

However, if you'll get less Universal Credit than you get now (and are therefore eligible for a transitional protection payment) and your deadline to apply is after 8 April, it may be worth waiting until at least 9 April to claim, as you'll benefit from more of a top-up .

That's because benefits, including tax credits, will be rising by 6.7% in the new tax year, so you may be better off waiting until after 8 April (the first Monday of the new financial year, when higher rates kick in) to start your claim.