Households have been left out of pocket after a Department for Work and Pensions (DWP) error affected their benefits.
Hundreds are facing a potential loss of £416 a month due to errors linked to the managed migration process the DWP is undertaking.
Two million claimants on legacy benefits are moving to Universal Credit by the end of March 2025 through a process known as managed migration.
As part of this process, households on legacy benefits, including tax credits, receive “migration notices” by post, explaining how to switch to Universal Credit.
However, an issue arose after a “small number” of the 800,000 Employment and Support Allowance (ESA) recipients encountered problems when applying for Universal Credit.
Some claimants are being incorrectly asked to provide fit notes or agree to new work commitments, contrary to DWP rules.
Some claimants are being incorrectly asked to provide fit notes or agree to new work commitments, contrary to DWP rules
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This error puts affected individuals at risk of losing their limited capability for work and work-related activity (LCWRA) payments, which are worth £416 a month.
According to DWP rules, ESA claimants should not be required to provide fit notes during the migration process.
Those in the ESA support group should not be asked to undertake any work-related activities, as their work capability status should carry over when they migrate to Universal Credit.
However, some claimants have been incorrectly informed that they need to agree to new work commitments before making the switch.
Their letter explains that failure to provide fit notes or agree to new work requirements could make them ineligible for LCWRA payments – but this is wrong.
ESA claimants transitioning to Universal Credit are not required to submit new fit notes or agree to new work requirements to maintain their LCWRA payments. By changing their fit notes, they may end up losing out on their benefits once transitioned.
The error affects those transitioning from legacy ESA claims, which consist of a standard allowance and an additional component for incapacity for work.
The additional component – either the work-related activity component or the support component – is being replaced by Universal Credit’s LCWRA payments.
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If they were already receiving extra components under ESA, these should automatically transfer.
Once claimants receive their “migration notices” by post, they should follow the instructions on how to switch to Universal Credit.
This transition is not automatic, and households must apply within three months of receiving their managed migration letter.
Failing to apply within this timeframe can result in benefits being stopped. However, the work capability status of those in the ESA support group should carry over when they migrate to UC.
It is crucial for claimants to be aware of these rules to avoid potential loss of benefits due to administrative errors.
Ayla Ozmen, director of policy & campaigns at anti-poverty charity Z2K, said: “It’s very concerning to hear that some disabled people on employment and support allowance who are being moved on to Universal Credit are being asked to look for work.
“Not only is this unlawful, but it puts disabled people at risk of being inappropriately sanctioned.”
A DWP spokesperson acknowledged the error, stating: “We are aware of an issue where a small number of claimants are still being asked to attend a Claimant Commitment appointment and are currently working to resolve the situation.
“Anyone who thinks they have been affected should contact their work coach.”
