Universal credit: Managed migration process
When will managed migration happen?
Who will not move across to UC?
Who will be sent a migration notice?
How are migration notices sent?
Termination of existing benefits
Claiming UC on or before the deadline
Claiming UC after the deadline day
Until they are selected to take part in the managed migration exercise and issued with a migration notice or a tax credits closure notice, most existing tax credits claimants are only affected by UC if:
- They choose to make a claim for UC
- They have a change of circumstances which ends their tax credit claim, they still need to claim support
- They need to make a claim for another benefit that UC has replaced, for example, housing benefit. Making a UC claim in this situation will result in the termination of the tax credits claim.
- They fail to renew their tax credits award on time and HMRC cannot reinstate the renewal claim but the claimant still needs to claim support.
Moving to UC in any of the above situations is referred to as ‘voluntary migration’ or 'natural migration' and is characterised by the tax credit claimant taking some action (either by choice or due to a change of circumstances requiring it) to move to UC at a time that they choose.
However, some tax credit claimants may choose not to claim UC and may not have any change of circumstances that would require them to claim UC. Most of these people will eventually move across to UC through a managed migration process by DWP/HMRC, so that eventually the tax credits system will no longer exist. The managed migration exercise is expected to be completed by the end of the 2024/25 tax year.
The main difference between voluntary/natural migration and managed migration is transitional protection. Due to the UC rules, some people will be better off claiming UC, some about the same and others will get less on UC than they got on their legacy benefits. The Government initially committed that there would be no cash losers at the point of moving to UC (assuming no change of circumstances) for those who are part of the managed migration. In reality, the rules that have been introduced do not provide that 100% guarantee for every case but it does provide a mechanism for DWP to add a temporary additional element to the UC award to smooth the transition to the new benefit in most of the cases where someone would be worse off when they migrate. Those who start to claim UC by choice or because of a change of circumstances ( natural/voluntary) will not have access to any transitional protection - the one exception being for certain claimants entitled to a severe disability premium in their legacy benefits (income support, JSA and ESA).
Note: The DWP/HMRC operational migration process is. Further changes may be made as it rolls-out to more people. Some of the information is only available via DWP guidance (sometimes published) but this guidance, and underlying processes, may change without any updates being published. We therefore recommend that for individual cases you check the latest position with DWP before taking or refraining from taking any action.
When will managed migration happen?
In Great Britain, DWP initially began by testing the managed migration process from July 2019 through a pilot. The pilot was initially expected to last for 12 months before being evaluated and the process gradually scaled up. During the 12-month test period, up to 10,000 existing legacy benefit claimants (including some tax credit claimants) were expected to be moved across to UC through the new process. However, due to the impacts of the coronavirus outbreak in the UK (March 2020 onwards) the pilot was suspended. The draft regulations for the pilot were published in January 2019 and were then formally laid before Parliament, under negative procedure, on July 2019, however they included a limit on the number of cases that could be migrated (10,000 cases).
Since then, further regulations were laid in July 2022 which make a number of amendments and remove the 10,000 restriction on the number of cases.
DWP have said that they expect to have issued migration notices to most tax credit claimants by the end of 2024. Because the migration notice generally gives a period of 3 months during which to claim UC and before the legacy benefits/tax credits are terminated, the schedule means the migration of most tax credit claimants is expected to be completed by the end of the 2024/2025 tax year (March 2025) and the tax credits system will then end.
DWP restarted work on the migration process in 2022 and from May 2022 began issuing the first migration notices. They are expanding the exercise both in terms of the number of migration notices being issued and across geographic locations and expect to be covering the whole of the country by December 2023. Initially notices were sent out in 250-500 batches. In early 2023, DWP started issuing 1,000 notices a month and in August 2023 substantially increased to 30,000 notices a month with an expansion to tax credit claimants at full scale during 2024.
The vast majority of tax credit claimants will receive a migration notice before the end of October 2024. This includes those who have previously had a notice that was cancelled or deferred. See GOV.UK for more information.
See our migration roll-out schedule page for more information.
The Department of Communities announced a delay to managed migration of legacy benefit claimants to UC in Northern Ireland. The intention was initially to consider learning from the managed migration pilot in Great Britain from July 2019. Northern Ireland was due to begin managed migration in 2020 and aim to complete by the end of 2023. In July 2022, further regulations were published, similar to those in GB, to prepare for the resumption of the move to UC.
Starting from April 2023, the Department of Communities started to issue small batches of migration notices to those living in certain areas and have continued to expand the exercise, mirroring the GB position.
Who will not move across to UC?
Some people will not move across to UC and will be invited to claim pension credit instead. However, there will be a small number of people who will not be entitled to universal credit or pension credit and they will not be invited to make claims for either. Tax credit support will be withdrawn on 05.04.2025.
Those who will be invited to claim pension credit rather than UC are:
- State pension age claimants who are claiming working tax credit (with or without child tax credit) and who are not claiming pension credit, will be issued with migration notices and invited to claim UC, with some specific rule changes in UC to allow them to claim.
- State pension age claimants who are claiming child tax credit and are not entitled to working tax credit and state pension age claimants who are claiming tax credits and also pension credit at the same time, will be issued with tax credits closure notices and, if not already doing so, will be invited to claim pension credit instead of tax credits.
In both scenarios transitional protection will be available . Most mixed age couples will be invited to claim universal credit although those who are protected (which means they are still entitled to claim pension credit) and claiming child tax credit only will be invited to claim pension credit. Similarly those mixed age couples already claiming pension credit alongside tax credits will remain on pension credit.
Those invited to claim pension credit will receive a tax credits closure notice. See our pensioners section for more information.
What is a tax credits closure notice?
A tax credits closure notice is issued to advise existing tax credit claimants that their tax credit award will be ending from a specified date. The legislation currently extends tax credits closure notices only to those who have reached their state pension credit qualifying age who are not being invited to claim universal credit and are instead expected to claim support through pension credit, with transitional protection available. It also includes those who are already claiming pension credit alongside tax credits. Tax credit awards that end under the terms of a tax credits closure notice are finalised under the in-year finalisation process.
In joint claims, both claimants should be issued with a tax credits closure notice. The deadline day will normally be 3 months from the date of issue but can be shorter for example if the claimant is already claiming state pension credit when it is issued or if they have previously had a tax credit closure notice or a migration notice cancelled. Where it appears a tax credit closure notice has been issued in error, DWP can treat it as a migration notice.
There may be some people who will not be permitted to claim UC or pension credit and therefore will not be part of any migration exercise. It is expected that they will remain on tax credits until the tax credits system is closed down.
A migration notice informs a person that all awards of any existing benefits (those which UC is replacing) to which they are entitled are to terminate and that they will need to make a claim for universal credit. It also sets out the day (deadline day) by which a UC claim must be made.
Who will be sent a migration notice?
The legislation states that the DWP may, at any time, issue a migration notice to a person who is entitled to an award of an existing benefit. Existing benefits are those which UC is replacing including working tax credit and child tax credit. In other words, DWP have a discretion whether to issue a notice or not to any individual.
DWP guidance suggests that some people may be excluded permanently from receiving a migration notice and some may be deferred from receiving a managed migration notice even if they live in an area where notices are being issued. However, the list of those excluded changes frequently as DWP develop processes to move more claimants.
How are migration notices sent?
The legislation refers to ‘issuing’ a notice but doesn’t appear to prescribe how it should be issued. DWP guidance suggests that migration notices are issued by post to those selected (Page 4, Case Manager Gudiance), although this may change.
DWP guidance also suggests that if an individual issued with a migration notice has not made a claim 7 weeks after receiving their migration notice, a reminder notice letter will be issued.
If no claim for UC has been made 10 weeks after the migration notice was issued, a second reminder notice issued. The second reminder is by SMS text if there is a mobile number held, otherwise it is by letter. (Page 5, Case Manager Guidance)
Copies of migration notices can be requested but the original deadline day still applies.
Under the legislation, if a person is entitled to an award of an existing benefit and, for the purposes of that award, is a member of a couple then then DWP must issue a migration notice to their partner as well. This also applies where someone is part of a polygamous marriage – notices will be issued to all members of the marriage. All notices should have the same deadline day.
Both members of a couple must claim UC. In polygamous marriages, only the earliest parties to the marriage claim as joint claimants, while later partners claim as single claimants. Also, in some legacy benefits such as income support, only one member of a couple was the claimant, so UC will be different for those couples.
The process for claiming UC as a couple is slightly different to other benefits. To make a joint claim, both members of the couple will need to open separate UC accounts. For that reason, DWP recommend that they take it in turns to set up their UC accounts. Whilst making the claim, the first person will be asked if they have a partner (for UC purposes) and will be prompted to ask for a linking code. When their partner opens their account they will also need to select that they have a partner who they live with and they can enter the linking code, their partners name and postcode, which will result in the claims getting linked together as a joint claim.
There is a You Tube video from DWP explaining the process here.
The migration notice must specify a day by which a UC claim must be made. This is called the deadline day.
The deadline day must not be within the period of 3 months beginning with the day on which the migration notice is issued. So people should have at least 3 months from the date the notice is issued to make their UC claim.
For example if a migration notice is issued on 15th June we would expect the notice to show a deadline of 16th September if the minimum 3 month period is used. This is because the deadline day must not be within 3 months beginning on the day it was issued.
However, where a migration notice is issued to a claimant after cancellation of a previous migration notice or after cancellation of a tax credit closure notice the deadline day may be within such a shorter period as DWP considers appropriate.
The legislation allows DWP to change the deadline day (by which a UC claim has to be made) to a later date either:
- On the DWP’s own initiative; or
- Following a request to change it from the individual (as long as it is requested before the deadline day)
In both cases the legislation requires a ‘good reason to do so’.
The DWP must then notify the person of their new deadline day.
The legislation says DWP ‘may’ change the deadline day following a request from an individual, this means they do not have to if they do not agree there is a good reason.
DWP guidance gives the following examples of good reasons:
- The individual did not engage with the process until their claim by date was already very close
- They need more time to get documentation or information together to make the claim
- They need more time to get support with the claim
- They have planned hospital treatment which means they cannot make their claim by the date.
DWP guidance says that a maximum of 4 weeks can be applied for at a time, and that further extensions should be requested at least 1 week before the claim date to allow time to discuss options. There is no limit on the number of times an extension can be requested or allowed. Extensions must be requested before the deadline date as once that has passed, extensions can no longer be applied.
DWP guidance also suggests that they may extend the deadline date in certain cases where the deadline for making a claim is close. However, claimants should not rely on DWP as the power is discretionary. Claimants and adviser should therefore should assume legacy benefits will terminate on the date in the original notice.
Where a migration notice has been issued, the DWP can cancel it if:
- It was issued in error
- The DWP considers it necessary to do so in the interests of the person, or any class of person, or to safeguard the efficient administration of universal credit.
DWP also have the power to, instead of cancelling a migration notice, treat it as if it were a tax credit closure notice issued to that person and may treat the deadline day in the migration notice as if it were a deadline day in a tax credit closure notice. There is no detail about whether use of this power will be notified to the claimant.
In cases where a tax credit claimant has been issued with a notice but falls into one of the categories of people that DWP guidance suggests should be permanently excluded, it may be possible to argue that DWP should cancel it as it has been issued in error. However, the legislation gives DWP discretion as to whether to cancel any migration notice.
It should also be noted that where a migration notice is issued to a claimant after cancellation of a previous migration notice or after cancellation of a tax credit closure notice the deadline day may be within such a shorter period as DWP considers appropriate.
LA Welfare Direct 10/2024, mentions that from October 2024, no new cancellation requests will be accepted by DWP, although claimants will still be able to ask for an extension if needed (see above paragraph)
Termination of existing benefits
Where a claim for UC is not made on or before the deadline day set out in the migration notice, all existing benefits to which the person is entitled will terminate. The benefits will terminate are those that UC is replacing – income-related ESA, income-based JSA, income support, housing benefit, working tax credit and child tax credit.
DWP guidance suggests that in some cases DWP may suspend, rather than terminate, legacy benefits and extend the deadline day to allow the claim to be made. Where a claimant contacts DWP after a suspension letter is sent out, the legacy benefits can be reinstated. However, none of this is set out in legislation and it is not clear when DWP are using this suspension/extension process, therefore claimants and advisers should work on the basis that legacy benefits will terminate on the dates set out above.
Working tax credit and child tax credit will terminate the day before the deadline day.
Income-related ESA, income-based JSA, income support, housing benefit awards will terminate on the last day of the period of 2 weeks beginning with the deadline day. This effectively gives a 2 week run-on of these benefits. These extra payments will not be deducted from future UC payments.
The only exception to the termination rule is where there is an award of housing benefit which is based on entitlement in respect of specified accommodation or temporary accommodation. Such awards will not terminate if no claim is made before the deadline in the migration notice.
From 6 April 2024, where a tax credit award is terminated in line with the migration notice, the award will be finalised under the in-year finalisation process.
Claiming UC on or before the deadline
If a tax credit claimant receives a migration notice, there is no requirement of them to inform HMRC that they have made a claim for UC.
According to DWP guidance, any transitional element will only be calculated once the individual proves their identity and is eligible for UC. Once a UC claim has been made, usual UC processes around verifying information and evidence apply – such as claimant identity and checking details of any rent payments. If information is not provided within a month of it being requested, the claim will be closed.
Tax credit claimants may receive a renewal pack during the migration process. This should be completed if sent, as should any in-year finalisation forms sent after the UC claim has been made.
Claiming UC after the deadline day
If a tax credit claimant receives a migration notice and does not make a claim for UC on or before the deadline day, as explained above their tax credit award (and any other legacy benefit) will be terminated.
However, if they make a claim for UC after the deadline day but on or before the final deadline day, their UC award will start on the deadline day and the person will be entitled to transitional protection.
The final deadline is the day that would be the last of the first assessment period in relation to an award commencing on the deadline day.
Last reviewed/updated 15 October 2024