Published On: Tue, Feb 24th, 2026
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356,521 households lose DWP benefits after missing deadline | Personal Finance | Finance

A total 356,521 households have had their Department for Work and Pensions (DWP) benefits axed after failing to respond to a letter regarding a significant overhaul. These claimants have neglected to act upon migration notices, which are issued as part of the managed migration process.

Managed migration started in July 2022 and since then households receiving one of six legacy benefits have been sent correspondence outlining the steps required to transition to Universal Credit. Upon receiving the letter, claimants have merely three months to complete the switch. Failure to act could result in the loss of their current benefits.

Universal Credit is replacing a variety of existing means-tested benefits and tax credits (‘legacy benefits’) for working-age households.

The implementation schedule for Universal Credit has been delayed on numerous occasions, though in April 2024 the government unveiled proposals to speed up managed migration, reports Birmingham Live.

The DWP now intends to transfer people to Universal Credit and shutting down legacy benefits by the end of March 2026.

The latest figures from the DWP reveal that 356,521 households forfeited their benefits after failing to respond within this timeframe.

To date, 2,352,886 migration notices have been dispatched to people. Within this cohort, 1,985,703 people have submitted a Universal Credit application.

An additional 10,667 cases remain ongoing. Should someone fail to lodge their Universal Credit claim by the specified deadline but do so within a month afterwards, they are considered to have applied punctually and remain eligible for transitional protection within their Universal Credit entitlement.

A person’s eligibility for legacy benefits and tax credits ceases upon submitting a Universal Credit claim, or the day preceding their deadline should they not have applied for Universal Credit.

Income Support, income-based JSA, income-related ESA and Housing Benefit payments continue for a fortnight following the termination of entitlement, however.

The DWP has implemented an ‘enhanced support journey’ for those receiving income-related ESA and Income Support who require additional assistance in making their Universal Credit application.

This provision commences 12 weeks following the dispatch of a migration notice and encompasses supplementary telephone contact and, where required, visits to claimants’ homes.

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