DWP Universal Credit ‘exemption’ update ahead of June 30 deadline | Personal Finance | Finance

The Department for Work and Pensions has released a significant update for those transitioning onto Universal Credit. The announcement, made in Parliament, concerns the large-scale migration of claimants from older benefits to the new system — with a deadline fast approaching.

More than two million benefit claimants have already been transferred to Universal Credit as part of a sweeping overhaul of Britain’s welfare system. The process is known as migration.

People are being switched from so-called legacy benefits — such as income support and housing benefit — to Universal Credit in a drive to streamline the UK’s benefits system.

Under the scheme, claimants receive a letter stipulating a deadline by which they must make their claim — referred to as a ‘migration notice’. Claimants must apply for Universal Credit by the date stated in the letter to continue receiving financial support, or risk losing their payments altogether.

Official figures reveal that between July 2022 and the end of March 2026, 2,353,319 people across 1,822,374 households were issued migration notices. Of these, 1,992,161 individuals living in 1,580,239 households have successfully submitted a Universal Credit claim, reports the Mirror.

This indicates that a considerable number of people within that period have yet to make a claim — raising concerns that significant numbers of claimants could ultimately lose their benefits. The DWP this week issued a statement on the matter following questioning by an MP, confirming that certain individuals will be granted a temporary exemption from the deadline.

Luke Charters, the Labour MP for York Outer, quizzed Secretary of State for Work and Pensions Pat McFadden on “what steps his Department is taking to support people migrating to Universal Credit from legacy benefits.”

His colleague Stephen Timms, Minister of State (Department for Work and Pensions), stepped in to respond, saying: “All customers have access to support throughout the process, including the Move to Universal Credit Helpline and independent Help to Claim support provided by Citizens Advice, which offers tailored assistance to help people make and manage their claim.

“We also provide eligible customers with Transitional Protection where their Universal Credit entitlement would otherwise be lower than their previous legacy benefit award, ensuring their entitlement is protected at the point of migration. We recognise that some groups, including Employment and Support Allowance (ESA) customers, may be more vulnerable.

“For these customers, enhanced support is in place from the point they receive their Migration Notice. This includes the Enhanced Support Journey, which offers tailored contact and visiting officer support where appropriate for those who have not yet engaged.

“In addition, we have identified that some customers require a personal or corporate appointee but may not have arrangements in place ahead of the ESA closure date. In such cases, we will exempt these customers from the closure date to ensure they are not disadvantaged. This does not mean ESA will remain in payment indefinitely and a final closure date for these customers will be determined in due course.”

The DWP confirmed in April that income-related Employment and Support Allowance (ESA) and certain Housing Benefit claims for working-age individuals would cease on June 30, as part of the final stage of the Universal Credit migration process. That deadline was extended in March to allow claimants additional time to make the transition.

The migration process to Universal Credit

Universal Credit is replacing older, so-called legacy benefits. The DWP states the goal is to simplify and streamline the benefits system by merging six ‘legacy benefits’ into a single monthly payment, better supporting people in finding employment and progressing in their careers.

• income-based Jobseeker’s Allowance (JSA)
• Housing Benefit
• Income Support
• Working Tax Credit
• Child Tax Credit
• income-related Employment and Support Allowance (ESA)

Citizens Advice says: “Most legacy benefits will stop in July 2026. Most people getting legacy benefits should have received a migration notice by now.

“Contact the DWP if you haven’t received a migration notice. The DWP might eventually contact you, but it’s a good idea to speak to them as soon as you can. This is so you can move to Universal Credit without a gap in payments.”

For further details, visit the gov.uk official page on migration notices.