A quarter of tax credit claimants urged to switch to Universal Credit had their benefits cut off

According to a new analysis, 28% of applicants required to switch to Universal Credit between November 2022 and March this year did not - and their benefits have been interrupted.

About 5% applied after the deadline, but 28% did not apply and benefits were terminated (

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More than a quarter of tax credit claimants who were due to switch to Universal Credit had their benefits cut, according to alarming research.

In a warning to Tory ministers, the Child Poverty Action Group said many families on so-called inherited allowances risk losing a 'financial lifeline' and many have not transferred again. The government is transitioning people on older benefits - including tax credits - to Universal Credit (UC) through a system called "managed migration".

According to new analysis by the Child Poverty Action Group, 72% of the 1,800 people who submitted a notice of change between November 2022 and March 2023 subsequently claimed UC. About 5% applied after the deadline, but 28% did not apply for unemployment insurance benefits at all and their current benefits were terminated.

The organization said that in some cases an applicant "will have made an informed choice not to proceed to UC." But they added, "For many, the financial consequences of not switching to UC will be significant and the DWP has not released data on lost revenue for those who did not migrate to UC."

The Department for Work and Pensions is to send 500,000 tax credit claimant households notice of transfer to benefits under the new UC scheme. But the CPAG has warned that if the proportion of non-claims stays overall at 28%, around 140,000 households could see their current benefits cease.

Alison Garnham, Executive Director of Child Poverty Action Group, said, “Something is seriously wrong when 28% of people who maintained a tax credit claim did not get a CU claim. "And while the managed migration to unified communications is expected to continue apace, it is extremely concerning that so many families are at risk of having their tax credits summarily canceled because they have not not obtained an operational UC scholarship.

"An alarm bell is ringing loud and clear for the DWP: unless it provides more help to families migrating to UC, they could lose a financial lifeline."

She added: "We and many others have warned from the start that not all families will be able to claim UC on time and that ending their current benefits is drastic and potentially disastrous for children. affected.” The ministry needs to change its rules so that no household selected for managed migration will have their current benefits cut off until they safely receive UC. The risk of switching from old to new benefits should be borne by the DWP and not by low-income families. »

The Department for Work and Pensions has been contacted for comment.