DWP claimants issued with letter in post with major cut in payments update

Benefit claimants undergoing a significant transition have been affected by payment reductions due to delays in verifying their ID and financial details. The Department for Work and Pensions has stated that it has made improvements to rectify the issues, which resulted in some individuals reporting considerable payment decreases.

As part of its 'managed migration,' thousands are receiving letters informing them that their current benefits will cease and they need to apply for Universal Credit instead. In total, six legacy benefits are being replaced by Universal Credit. These include Income Support, Housing Benefit, Working Tax Credit, Child Tax Credit, income-based Jobseeker's Allowance and income-related Employment and Support Allowance (ESA).

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Both forms of tax credits have already been abolished as of April 2025, after everyone was requested to transition before that date. Those who still need to make the switch are primarily people on income-related ESA, reports Birmingham Live.

The DWP anticipates having sent all 'migration notice' letters to ESA claimants by December, enabling them to be successfully transferred to Universal Credit before the current financial year concludes on April 5, 2026.

Many of those receiving income-related ESA belong to a support group where they cannot work due to health conditions and disabilities.

Their physical and mental vulnerabilities mean they are likely to require assistance with the transfer process to ensure they switch before their previous benefits are cut off and receive the correct amount of Universal Credit rather than facing a payment reduction.

ESA claimants in the support group should be automatically transferred into Universal Credit's equivalent category for those with long-term sickness or disability.

However, concerns have been raised after some claimants received the wrong amount of Universal Credit following the changeover.

Benefits advice workers believe this occurred because some people's ID and details were not verified immediately, so an individual's first Universal Credit payment may have been reduced as it only reflected what had been confirmed at that time.

The DWP says it is tackling these issues and has enhanced the ID verification process. Sir Stephen Timms, minister for social security and disability, said: "Adequate resourcing for the transition is an important priority for the department.

"The department has identified a small number of cases where the payments due have not all been paid in full in the first assessment period, due to delays in the process.

"The problem has been addressed by introducing additional automation, and increasing the resources to deal with these cases. DWP has also enhanced the identity verification process, reducing the requirement for customers to attend the office or receive a home visit.

"We have robust plans in place to support the safe migration of cases onto UC. We will continue to monitor the position on these cases carefully through to the end of the migration activity, responding quickly if difficulties arise."

Sir Stephen was answering a query from Dr Beccy Cooper, Labour MP for Worthing West. She enquired what evaluation the DWP had conducted regarding "the adequacy of administrative capacity to manage the volume of transitions from Employment and Support Allowance to Universal Credit.

"What steps [were being taken] to ensure that vulnerable claimants do not experience prolonged delays or shortfalls in payment due to outstanding actions as a result of these transitions."