Thousands of benefit recipients are currently experiencing reduced payments due to delays in verifying their identity and financial details during the shift from legacy benefits to Universal Credit (UC).
The Department for Work and Pensions (DWP) has acknowledged the problem and says corrective measures have been introduced to ensure smoother transitions.
Major Shift Under DWP’s Managed Migration Plan
As part of the government’s managed migration strategy, individuals receiving legacy benefits are being sent letters informing them that their current benefits will stop. They are required to apply for Universal Credit in order to continue receiving financial assistance.
A total of six legacy benefits are being replaced by Universal Credit. These are:
- Income Support
- Housing Benefit
- Working Tax Credit
- Child Tax Credit
- Income-based Jobseeker’s Allowance (JSA)
- Income-related Employment and Support Allowance (ESA)
Notably, both tax credits were officially abolished in April 2025, and most who were on them have already made the switch to UC. Those still transitioning are largely income-related ESA claimants, according to reports from Birmingham Live.
Deadline for ESA Migration Approaches
The DWP plans to complete the issuance of all ‘migration notice’ letters to ESA recipients by December 2025, allowing claimants enough time to shift to Universal Credit before the end of the financial year on April 5, 2026.
A large number of these claimants belong to a support group — individuals who are unable to work due to long-term health issues or disabilities. This group is especially vulnerable and often requires personal assistance during the transfer process to avoid payment disruptions.
Under the UC system, ESA claimants in support groups are expected to be automatically placed in the Universal Credit category for those with long-term sickness or disability.
Payment Issues Spark Concern
Despite these intentions, some claimants have received lower payments upon moving to Universal Credit. According to benefits advisors, this has occurred due to delays in verifying personal identification and financial records.
As a result, initial UC payments may have been based only on partially verified information, resulting in shortfalls.
The DWP has since improved the ID verification process, aiming to reduce the chances of errors and limit the need for in-person visits or home checks.
Government Responds to Administrative Concerns
Sir Stephen Timms, Minister for Social Security and Disability, confirmed that:
- Only a small number of cases experienced full payment delays during the first assessment period.
- The DWP has now introduced increased automation and allocated more resources to handle these situations.
- The ID verification process has been upgraded, minimizing the burden on claimants.
- Ongoing monitoring will continue until all transitions are complete, and issues will be promptly addressed.
Sir Stephen was responding to Dr. Beccy Cooper, Labour MP for Worthing West, who questioned the DWP’s administrative readiness and what steps were being taken to prevent financial hardship among vulnerable claimants during the transition.
The transition to Universal Credit is a pivotal shift in the UK benefits system, aiming to streamline support for millions.
However, challenges such as delayed identity verification have impacted the financial stability of some of the most vulnerable claimants, especially those on income-related ESA.
The DWP is actively working to improve these processes and has assured the public that it is committed to making this migration as seamless and error-free as possible.
FAQs
What should I do if my first Universal Credit payment is lower than expected?
If your payment appears incorrect, contact Universal Credit as soon as possible. The DWP may not have fully verified your information, which could cause a reduced initial payment.
Who is most affected by the current migration issues?
Individuals on income-related ESA, especially those in support groups due to disability or health conditions, are among the most affected due to their dependency and vulnerability.
When will all ESA claimants receive their migration notice?
The DWP aims to send all migration letters by December 2025, ensuring transitions are completed before April 5, 2026.