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How to move to Universal Credit in 2025

The End of Legacy Benefits Era: How to move to Universal Credit in 2025

Across the United Kingdom, a quiet revolution is reshaping the social security landscape. The patchwork of separate benefits that millions have relied upon for decades—known collectively as “legacy benefits”—is being methodically dismantled and replaced by a streamlined system called Universal Credit.

For those still receiving these older forms of support, 2025 marks a critical juncture. Miss the transition, and you risk losing vital financial assistance that keeps food on your table and a roof over your head.

The Great Benefits Migration: What's Happening and Why

The legacy system, with its labyrinth of separate applications and assessments, has long been criticized for its complexity. Universal Credit aims to sweep away this confusion with a single monthly payment that adapts to your circumstances.

The benefits being phased out include:

  • Tax Credits (Working Tax Credit and Child Tax Credit) – Already abolished as of April 5th, 2025
  • Income Support – For those on low incomes who aren’t required to seek work
  • Housing Benefit – Help with rental costs
  • Income-based Jobseeker’s Allowance (JSA) – Support while seeking employment
  • Income-related Employment and Support Allowance (ESA) – Assistance for those with limited work capability due to health conditions

The government’s vision is clear: simplify the system, make benefits easier to understand and claim, and create stronger incentives for employment where possible. What began as a gradual rollout in 2019 has accelerated dramatically as we move through 2025.

The Phased Rollout and the Importance of 2025

The transition to Universal Credit has been a gradual process that began in 2019. However, 2025 is a pivotal year for those still receiving legacy benefits. The government is accelerating the “managed migration” process, which involves actively contacting remaining claimants and guiding them to switch to Universal Credit.

Crucially, Tax Credits were abolished by law on April 5th, 2025. This means that if you were receiving Tax Credits, you should have already been contacted about moving to Universal Credit or, in some cases, Pension Credit.

The Department for Work and Pensions (DWP) is aiming to send out Migration Notices – official letters informing you about the need to switch – to all remaining legacy benefit claimants by December 2025. The ultimate goal is to have all legacy benefits closed down by the end of March 2026.

transition to universal credit

What to do when you receive a Migration Notice?

Receiving a Migration Notice is the trigger for you to take immediate action. This letter will clearly explain that your current benefits are ending and that you need to claim Universal Credit to continue receiving financial support. It will also specify a deadline by which you must make your claim. Here’s a step-by-step guide on what to do when you receive a Migration Notice:
  1. The most critical piece of advice is to act promptly. Do not wait until the last minute to start your Universal Credit application.
  2. Read the Letter Carefully: Understand the deadline provided in your Migration Notice. This is the date by which you should ideally submit your Universal Credit claim.
  3. Claim Universal Credit Online: You will need to make your claim for Universal Credit online through the official GOV.UK website: https://www.gov.uk/universal-credit.
  4. Gather Your Information: The application process will require you to provide detailed information about yourself, your income (if any), your housing situation, your family circumstances, and any savings or capital you have. Have relevant documents ready, such as proof of address, bank statements, and income details.
  5. Complete the Application Thoroughly: Ensure you answer all questions accurately and provide all necessary information. Mistakes or omissions can delay your claim.
  6. Identity Verification: You will likely need to verify your identity online through the GOV.UK Verify service. If further checks are required, you may be contacted by phone or asked to attend an appointment at a Jobcentre Plus.
  7. Regularly Check Your Universal Credit Account: Once your application is submitted, it’s essential to log in to your online Universal Credit account regularly. The DWP may send you messages requesting further information or documents. Responding to these requests quickly is crucial to avoid delays in your payments.
steps to claim universal credit england

The Importance of Meeting the Deadline

Submitting your Universal Credit application by the deadline stated in your Migration Notice is absolutely critical. If you miss this deadline, your old benefits will automatically stop. Making a new claim for Universal Credit after the deadline can have significant consequences:

  • Loss of Transitional Protection: If you claim Universal Credit on time as part of the managed migration, you may be eligible for “transitional protection.” This means that if your initial Universal Credit payment is lower than the total amount you were receiving from your old benefits, you may receive an extra amount to bridge this gap. However, if you claim late, you will likely lose this vital protection.
  • No Special Savings Rule: If you claim Universal Credit after the Migration Notice deadline and have savings, capital, or investments worth over £16,000, your application will be refused. However, if you claim on time after receiving a Migration Notice, a special rule applies for the first 12 assessment periods, allowing you to receive Universal Credit even if your savings are above this threshold.

What About Pension Credit?

It’s important to understand that Pension Credit operates differently. This benefit is specifically designed for people who have reached State Pension age and are on a low income. If you are only receiving Pension Credit and no other legacy benefits that are being replaced by Universal Credit, you will generally not be required to switch to Universal Credit. Pension Credit will continue to provide support for eligible pensioners.

However, there are exceptions, particularly for mixed-age couples (where one partner is over State Pension age and the other is under) and for those over State Pension age who were previously receiving Tax Credits. If you fall into these categories, you may have already been contacted about claiming Universal Credit or Pension Credit based on your specific circumstances.

Key Takeaway: Act Now if You Receive a Migration Notice!

The transition to Universal Credit is a significant change, and it’s essential to be proactive. If you are currently receiving any of the legacy benefits mentioned in this guide, be vigilant for your Migration Notice letter. Once you receive it, treat it as urgent and follow the steps outlined above without delay. By understanding the process, knowing the deadlines, and acting promptly, you can ensure a smoother transition to Universal Credit and protect your access to the financial support you need. Don’t let these crucial changes catch you off guard – take control of your situation today. For more detailed information and to start your Universal Credit claim, please visit the official GOV.UK website: https://www.gov.uk/universal-credit. You can also find helpful resources and advice on the Citizens Advice website: https://www.citizensadvice.org.uk/benefits/universal-credit/.

Do you have any questions? Worried about how these changes will affect your business? Give us a call or send us an email. We are here to help you navigate these changes!

Disclaimer: This is a simplified explanation and should not be considered professional tax advice. Always check the latest information on gov.uk