DWP stops paying benefits to 350,000 people over rule

DWP stops paying benefits to 350,000 people over rule

The Department for Work and Pensions (DWP) has stopped benefit payments for more than 350,000 people after they failed to meet a key deadline linked to the nationwide rollout of Universal Credit. The move marks another major stage in the government’s long-running welfare reform programme, which is gradually replacing older “legacy benefits” with the Universal Credit system.

For many households, the change has happened quietly through letters sent by the DWP known as “migration notices.” These notices instruct claimants to apply for Universal Credit within a strict three-month period. Unlike some previous benefit transitions, people are not automatically transferred. If they fail to apply in time, their existing payments stop.

The latest government figures show hundreds of thousands of people have now lost access to benefits after missing that deadline, raising concerns among charities and welfare experts that vulnerable claimants may have slipped through the cracks.

More Than 350,000 Claims Closed After Missing Deadline

According to newly released government data, over 350,000 claimants had their benefits terminated because they did not submit a Universal Credit application within the required timeframe.

The closures are tied to the DWP’s “Move to Universal Credit” programme, which has been running for several years. The welfare overhaul originally began under Conservative governments and is now approaching its final stages under the current Labour administration.

The latest benefits affected include:

Legacy Benefit Being RemovedCurrent Status
Income SupportBeing phased out
Jobseeker’s Allowance (income-based)Being phased out
Housing BenefitGradual migration continuing
Tax CreditsMigration largely completed
Employment and Support Allowance (ESA)Deadline extended

The DWP says more than 1.9 million people have already been successfully moved onto Universal Credit.

Official guidance on the transition can be found through the UK Government website at https://www.gov.uk/universal-credit and migration details are available via https://www.gov.uk/guidance/uc-full-service-survey.

Why Some Claimants Lost Their Benefits

One of the biggest issues surrounding the migration process is that claimants must actively apply themselves. The switch does not happen automatically.

After receiving a migration notice, claimants are usually given three months to:

  • Open a Universal Credit account
  • Complete an online application
  • Verify identity and financial details
  • Submit supporting evidence if requested

If that process is not completed before the deadline, existing benefits end.

Welfare groups fear many affected people may have:

  • Missed the letters
  • Forgotten the deadline
  • Struggled with online applications
  • Had health or mental health issues
  • Not fully understood the process

The concern is especially strong for older and vulnerable claimants who relied on legacy benefits for years.

ESA Deadline Extended Over Vulnerability Concerns

The DWP has acknowledged concerns about vulnerable households potentially losing financial support.

As a result, the government confirmed that the deadline for people receiving income-related Employment and Support Allowance (ESA) has now been extended.

Sir Stephen Timms, Minister for Social Security and Disability, recently said:

“Our Move to Universal Credit campaign has been successful in moving over 1.9 million people from legacy benefits to the modern Universal Credit system.”

He added:

“Vulnerable customers have been at the forefront of this campaign. In their interests, we are extending the deadline for income-related Employment Support Allowance claimants to move over.”

Further information about ESA migration can be found at https://www.gov.uk/employment-support-allowance.

What Universal Credit Replaces

Universal Credit was designed to combine multiple benefits into a single monthly payment system.

It replaces:

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

The government argues the system is simpler and intended to make transitions into work easier.

However, critics say the digital-first structure and monthly payment setup can create difficulties for some households.

Concerns Over People Falling Out of the System

Charities and campaigners are increasingly worried about the number of people disappearing from the benefits system entirely.

While some may have found work or no longer needed support, others may simply have failed to complete the process.

Policy experts have repeatedly warned that:

  • People with disabilities are at higher risk
  • Those without internet access may struggle
  • Individuals with literacy issues may miss instructions
  • Mental health conditions can make paperwork difficult

Several organisations have urged the DWP to increase direct support and improve communication before additional migration deadlines arrive.

Citizens Advice offers guidance for affected claimants through https://www.citizensadvice.org.uk/benefits/universal-credit/.

What Claimants Should Do If They Receive a Migration Notice

Anyone still receiving a legacy benefit should pay close attention to any letters from the DWP.

If a migration notice arrives:

  1. Do not ignore it
  2. Check the deadline immediately
  3. Begin the Universal Credit application as soon as possible
  4. Seek advice if unsure

Support is available through:

  • Jobcentres
  • Citizens Advice
  • Welfare rights organisations
  • Local councils

The DWP also provides direct Universal Credit support at https://www.gov.uk/universal-credit/how-to-claim.

Universal Credit Rollout Nearing Completion

The government’s welfare transition programme is now entering its final phase after years of gradual implementation.

Although ministers describe the migration as largely successful, the figure of more than 350,000 closed claims highlights the continuing risks tied to the process.

For households relying on benefit payments to cover rent, food, and essential bills, missing a deadline can have serious financial consequences. With more migration notices expected in the months ahead, welfare advisers are urging claimants to stay alert and act quickly if contacted by the DWP.

SOURCE

FAQs

Q1. Why did the DWP stop benefits for 350,000 people?

The benefits were stopped because claimants failed to apply for Universal Credit within the three-month deadline after receiving migration notices.

Q2. Are legacy benefits ending permanently?

Yes. The government is gradually replacing older benefits with Universal Credit as part of the welfare reform programme.

Q3. Which benefits are being replaced by Universal Credit?

Universal Credit replaces Income Support, income-based JSA, income-related ESA, Housing Benefit, Child Tax Credit, and Working Tax Credit.

Q4. Can people still apply after the deadline?

In some cases, claimants may still be able to apply for Universal Credit after their previous benefits stop, but they could lose transitional protections or face gaps in payments.

Q5. Has the ESA migration deadline changed?

Yes. The DWP confirmed that the deadline for some ESA claimants has been extended due to concerns about vulnerable people losing support.

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