The Department for Work and Pensions has written to people telling them they need to apply for UC - but if they don't their benefits will be stopped
People are losing out on £3,200 a year by failing to switch their benefits over, Parliament has been told. In Work and Pensions Topical Questions this week in the House of Commons the massive programme to shift hundreds of thousands of people on ‘legacy benefit’ to Universal Credit was raised.
Dame Meg Hillier said that this was a serious issue with people losing thousands of much-needed pounds as a result. She said: “Of people currently claiming tax credits, 20% are not moving over to universal credit in the migration. The Department tells us that those who are not claiming would have got a median amount of £3,200 a year.
If people fail to respond to the letter they have their ‘legacy benefit’ stopped. The National Audit Office has said that almost all of those people who have failed to claim Universal Credit after being told their legacy benefit is being stopped are on tax credits. In a report the NAO said by the end of December 2023, DWP had sent nearly 350,000 migration notices advising legacy benefit claimants they need to apply for UC if they want to continue receiving financial support.
In the debate Dan Carden added concerns about the length of time it takes to make the transition if people do in fact apply: “The Government will move thousands of my constituents across to universal credit over the next year. They will be forced to wait five weeks for their first payment or up to nine weeks if they receive child or working tax credits. According to DWP data, 60% of the people across Merseyside who are in that situation will take out an advance loan.
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