The Department for Work and Pensions (DWP) has addressed the sharp increase in Universal Credit claims, explaining that nearly 80% of the rise stems from the transfer of claimants from legacy benefits, not new claims. As of December 2025, 8.34 million people claimed Universal Credit in Britain, up nearly one million from December 2024.
Data released on Tuesday shows over 775,000 of these claimants were moved from older benefits such as Working Tax Credits and Child Tax Credits, which have now officially ended. The DWP stated on X: 'Nearly 80% of the increase is people being moved from old benefits onto Universal Credit. Not new claims. A transition we inherited.'
The managed migration process involves sending migration notices to affected individuals, giving them a personal deadline to apply for Universal Credit to receive Transitional Protection. This protection ensures claimants are not left worse off; for example, if someone received £600 monthly from Tax Credits but qualifies for only £400 under Universal Credit, an extra £200 is added.
Those who miss the deadline lose entitlement to Transitional Protection, though the DWP may offer reasonable adjustments, such as extended deadlines or appointees for vulnerable individuals. Sir Stephen Timms recently confirmed that over 150 Complex Case Coaches have been deployed to provide personalised support.
The government expects the final stages of migration to be complete by the end of March 2026. The DWP emphasises that the increase in Universal Credit claims is due to this administrative transition rather than a surge in new benefit applications.
