Universal Credit shake-up! UK government funds £15m for smoother benefits switch

The UK’s Department for Work and Pensions (DWP) has announced a monumental £15 million funding boost for the Help to Claim scheme, intensifying efforts to migrate claimants from Employment and Support Allowance (ESA) to Universal Credit by March 2026. This injection of funds signals a significant escalation in the government’s commitment to streamline the welfare system, now targeting a faster shift for more than 800,000 ESA recipients. The initiative underscores the importance of Universal Credit, which provides a modernized benefit system better equipped to support employment and financial independence.

The Help to Claim scheme, operated in partnership with Citizens Advice and Citizens Advice Scotland, has already proven crucial for over one million claimants since its launch in 2019. Now, with new funds, it’s poised to aid thousands more in navigating the Universal Credit application process, ensuring that they receive accurate information, documentation support, and timely guidance.

Citizens Advice to lead frontline support in £15 million Universal Credit transition

This funding boost arrives on the heels of a strategic decision by the government, announced during the latest Budget, to accelerate the shift to Universal Credit. The revised timeline aims for all ESA claimants to transition by March 2026, a full two years earlier than previously planned. Since July 2022, the DWP has contacted more than 943,000 households regarding the change, with the target set to dispatch 60,000 migration notices per month starting in February 2025.

Social Security and Disability Minister Sir Stephen Timms encouraged those receiving notices to act swiftly, highlighting that this proactive approach will be critical in securing continuous benefit access during the transition. Timms expressed confidence that the bolstered funding would provide a smooth transition for claimants, assuring them that they’ll be well-informed and supported.

The latest move toward Universal Credit reflects a broader trend in the DWP’s approach to welfare, with the goal of making employment support more accessible and integrated. The upcoming Get Britain Working White Paper, slated for release this autumn, is expected to detail additional initiatives that will support people transitioning to the workforce, including revamped jobcentre services and local work programs.

Expert opinion: Clare Moriarty commends the government’s focus on welfare transition

Dame Clare Moriarty, Chief Executive of Citizens Advice, acknowledged the importance of the additional funds, stating that the Help to Claim advisers had become an essential resource for claimants. Moriarty noted that the funding would enable Citizens Advice to extend its reach, helping more individuals understand Universal Credit and access the benefit they are entitled to. She emphasized the accessibility of their services, which include support options via phone, chat, and British Sign Language.

This expansion of support resources is seen as a vital part of the DWP’s mission to “Get Britain Working.” The DWP’s White Paper includes a budget allocation of £240 million, which will finance a series of “trailblazer” projects aimed at connecting those who are economically inactive with local employment services, health providers, and skills development programs. These trailblazers are set to transform employment support, particularly by reaching individuals typically outside the system.

Universal Credit timeline details rollout of migration notices by benefit type

The DWP’s outlined timeline offers clarity on when claimants can expect to receive migration notices, based on their current benefits. For example, claimants on tax credits started receiving notices in March 2023, while individuals on income-based Jobseekers Allowance (JSA) and ESA are scheduled to receive notifications beginning in September 2024.

This planned rollout aligns with the government’s goal of a phased transition, ensuring that support services like Citizens Advice remain equipped to handle the increased demand as more claimants make the switch to Universal Credit.

With £15 million now boosting Help to Claim’s resources, the DWP is prepared to support thousands of additional claimants through their first application, ensuring they understand the process, eligibility criteria, and the long-term benefits of Universal Credit. This funding reflects a broader commitment to economic inclusion and welfare reform, demonstrating the government’s intent to keep Britain’s workforce adaptable and resilient.