Date when DWP will send letter telling 1.7 million claimants payments will stop

May 10, 2024 Vaseline stjohnson 0

The Department for Work and Pensions (DWP) has revealed when benefit payments will stop for more than a million people later this year, as part of a government move to get more people back into work and off long-term sickness and disability benefits.

While announcing sweeping reforms to Personal Independence Payments (PIP) that could see cash payments exchanged for vouchers to get more people back to work, the Prime Minister revealed that the Universal Credit rollout will be brought forward for people on “legacy” benefits. It is thought bringing forward the end of old-style benefits will save the DWP around £5bn from claimants who do not realize and drop out of the system.

This means that payments for 1.7 million people claiming Employment Support Allowance will end soon, with letters starting to be sent out in September of this year telling benefit claims that their payments will stop, unless they move onto the one-for-all Universal Credit system . ESA is primarily claimed by people with disabilities and long-term sickness.

READ MORE: DWP to rollout PIP crackdown changes in Greater Manchester later this year

After receiving the letter, claimants will have three months to make the switch, as the change is not automatic. This means that anyone who receives their letter in September and has not applied for Universal Credit by December will stop receiving their monthly payments.

With the aim of notifying all ESA claimants by December, the DWP will send out its last ESA payment by March, 2025, when anyone who has not switched to Universal Credit will stop receiving benefits.

Moving over to Universal Credit will involve an assessment which will determine the level of cash assistance you will get from the government. If you live with a disability, you are likely to receive a further assessment to calculate how much extra help you might need.

However, during the “managed migration” to Universal Credit so far, around a quarter of claimants have failed to make the switch, which will often actually result in the claimant receiving more help, especially if they live with a disability.

According to the LA Welfare Direct Bulletin: “Many claimants will be better off on UC than legacy benefits and we estimate around half of our ESA and ESA with Housing Benefit claimants would receive over £100 a month more on UC. Claimants will also be able to benefit from improved work incentives and enhanced labor market support for those who want it.

“Our delivery approach and timelines will be informed by detailed planning and engagement with stakeholders, but our current planning assumption is that we would begin notifying this group in September 2024, with the aim of notifying everyone to make the move by December 2025.

“A new Move to UC communications campaign launched in March 2024 to help prepare claimants with other benefit combinations for their move to UC. The campaign is running nationally and is being delivered through radio, paid search (Google and Bing), outdoor advertising (bus stops and billboards), digital and social media advertising.

“The campaign aims to tackle claimant fear and anxiety about moving to Universal Credit, using the headline ‘Keep things smooth by making the move to Universal Credit’. Advertising also signs posts to www.gov.uk/ucmove, which is a new website containing supportive information, real life case studies and advice on how to prepare for the move.”

Transitional Protection Payments

Transitional Protection payments are an additional amount to help with your move to Universal Credit. The payment will make up the difference if your Universal Credit entitlement is less than your previous tax credits or benefits.

If eligible, this protection means you can:

  • get a Transitional Protection payment added to your Universal Credit entitlement if you receive more from your previous Tax Credits or benefits

  • claim Universal Credit and have money, savings and investments over £16,000 for 12 assessment periods, if you receive Tax Credits

  • claim Universal Credit if you’re a full-time student in higher education until you or your partner finish the course

Eligibility for Transitional Protection

You do not need to apply for Transitional Protection – but to qualify for it, you must make a claim for Universal Credit before the deadline date on the Migration Notice letter.

The Migration Notice letter will be from the DWP and invite you to make a claim for Universal Credit.