Universal Credit recipients are set to face a raft of changes in the upcoming months as government policy shifts and benefits overhaul kicks in.
A significant number of claimants will be transitioned to Universal Credit from their existing benefits, in a process termed ‘managed migration’. This move will impact several ‘legacy benefits’ which are no longer available to new applicants.
The switch will encompass a variety of benefits administered by the Department for Work and Pensions (DWP) and HM Revenue and Customs (HMRC), including Income Support, Income-based Jobseeker’s Allowance, Income-related Employment and Support Allowance (ESA), Housing Benefit, Working Tax Credit, and Child Tax Credit.
For more information on the transition to Universal Credit and the upcoming increase in payments for current claimants, see the details below….
Universal Credit migration
The DWP is ramping up its Universal Credit migration efforts. The initial phase began with 60,000 notifications sent out in February, with ambitions to escalate this number to 83,000.
Determined to finalise the migration, the last round of notices is expected to be issued by September.
The DWP has indicated that this phased approach will “allow a little more time before the end of March 2026 to provide support for our more vulnerable customers and complete the migration of ESA cases to Universal Credit”.
The Department for Work and Pensions (DWP) is ramping up its support mechanisms, injecting a further £15 million into the Help to Claim service. This strategic funding boost aims to facilitate smoother transitions for around 800,000 individuals as they move from ESA to Universal Credit by March 2026, jumping ahead of the original goal set for 2028.
Sir Stephen Timms MP, the Minister for Social Security and Disability, emphasised the positive impact of this initiative: “This funding boost will support many people as they make the move from old benefits to Universal Credit – ensuring customers feel confident and informed throughout the application process.”
Sir Stephen was earnest in his advice to those due to receive migration notices: “I want to encourage anyone receiving a migration notice over the coming months to act without delay to secure quick access to benefit entitlement.”
He also shone a light on wider changes: “The biggest reforms to employment support for a generation will also ensure more people get the help they need to get into work and on at work, by overhauling Jobcentres, tackling inactivity with local work, health and skills plans, and delivering a Youth Guarantee.”
As a cornerstone of DWP‘s support system, the Help to Claim service stands ready to offer expert advice to new Universal Credit applicants, including those transitioning from legacy benefit schemes, guaranteeing sustained aid until the first accurate payment is secured.
Payment increase
Labour has pledged to escalate the standard allowance for Universal Credit beyond inflation during the tenure of the current government. Baroness Maeve Sherlock stated: “The proposed increases are inflation (measured by CPI), plus: 2.3 per cent in 2026/27, 3.1 per cent in 2027/28, 4.0 per cent in 2028/29 and 4.8 per cent in 2029/30.”
She added, “As such, in each year, the rates will be what they would have been under CPI uprating and then increased by the relevant percentage figure.”
The present rate for Universal Credit is detailed as follows:
- Single and under 25 – £316.98
- Single and 25 or over – £400.14
- Couple both under 25 – £497.55 (for you both)
- Couple if either partner are 25 or over £628.10 (for you both)