Big changes are happening in the UK benefits system, and if you’re receiving Tax Credits or Income-Related ESA, you need to take action fast. The Department for Work and Pensions (DWP) has issued an urgent warning: these legacy benefits are being replaced by Universal Credit (UC), and millions will be affected by 2025 and 2026.
If you get a letter from the DWP—called a “Migration Notice”—you’ll have three months to apply for UC. Miss the deadline, and your current benefits could stop altogether.
Let’s break down exactly what this means, when it’s happening, and how to protect your payments.
Table of Contents
Overview
| Aspect | Details |
|---|---|
| Benefits Ending | Tax Credits (July 2025), Income-Related ESA (March 2026) |
| Process Name | Managed Migration to Universal Credit |
| Action Needed | Apply for UC within 3 months of notice |
| Number of Notices Sent | ~83,000 per month |
| Replaced Benefits | JSA, ESA, Income Support, Housing Benefit, Tax Credits |
| Who Gains | 1.4 million claimants |
| Who Loses | 900,000 claimants (transitional help may apply) |
| Source | Official DWP Guidance |
Managed Migration
Managed migration is the government’s final push to move people from six older “legacy” benefits to one system: Universal Credit. These legacy benefits include:
- Income-Based Jobseeker’s Allowance (JSA)
- Income-Related Employment and Support Allowance (ESA)
- Income Support
- Working Tax Credit
- Child Tax Credit
- Housing Benefit
Instead of receiving separate payments, Universal Credit combines them into one monthly payment.
If you’re affected, the DWP will send you a letter explaining that your current benefits are ending. You’ll have three months to apply for Universal Credit. Miss that deadline, and your benefits will stop—even if you’re still eligible.
Why the Urgent Warning Now?
The government has set deadlines:
- Tax Credits will end by July 2025
- Income-Related ESA will end by March 2026
That means millions of people are being moved each month. The DWP sends around 83,000 migration notices every 30 days. It’s up to you to act once you receive it.
Real-Life Scenarios
Jane, a single mum in Birmingham, received her notice in February 2025. She applied within the deadline and kept her full benefits thanks to transitional protection.
Mark, in Liverpool, ignored his letter. His ESA payments stopped after three months. He had to reapply for UC from scratch and lost financial support for weeks.
Step-by-Step
This letter is your official notice. It tells you your benefits are ending and includes a deadline. Once you receive it:
- Mark your calendar
- Don’t ignore it
- If you’ve moved, update your address with the DWP
Apply for Universal Credit
Go to the Universal Credit website and begin your application. It takes about 30 to 60 minutes. You’ll need:
- National Insurance number
- Photo ID (passport or driving licence)
- Details of rent, income, savings, and childcare (if applicable)
Transitional Protection
If your UC amount is less than what you currently get, transitional protection can make up the difference—but only if:
- You apply after receiving a migration notice (not if you move to UC voluntarily)
- You apply within the deadline
- Your circumstances don’t change significantly (e.g. you move in with a partner or start full-time work)
If you’re eligible, transitional protection ensures you don’t lose money immediately. It tapers off over time.
Who Gains and Who Loses?
The Office for Budget Responsibility says:
- 1.4 million people will be better off
- 900,000 could receive less
- 300,000 will see no change
This is why checking your entitlements and acting quickly is so important.
Common Problems
Problem: You don’t understand the letter
Fix: Call the UC helpline or visit Citizens Advice for free help.
Problem: Your UC payment is lower
Fix: Ensure you applied after getting your migration notice to be eligible for transitional support.
Problem: You missed the deadline
Fix: Contact the DWP immediately and explain your situation. They may be able to help you reapply.
Important Advice
- Keep copies of all communications from the DWP
- Set reminders so you don’t miss the 3-month window
- Seek help early from Citizens Advice or your local council if you’re unsure
FAQs
When do Tax Credits end?
They will end by July 2025 across the UK.
What is a Migration Notice?
A letter from DWP telling you to switch to Universal Credit.
What happens if I miss the UC deadline?
Your legacy benefits will stop and you may lose income.
Am I eligible for transitional protection?
Yes, if you switch due to a migration notice and apply on time.
Can I get help applying for UC?
Yes, through Citizens Advice or the UC helpline.
