DWP Data Reveals Universal Credit Surge Driven by Legacy Benefit Transfers
Universal Credit Rise Mainly from Legacy Benefit Transfers

DWP Releases First-Ever Breakdown of Universal Credit Claimant Sources

The Department for Work and Pensions has published unprecedented data revealing that the substantial increase in Universal Credit claimants is predominantly due to transfers from older benefit systems rather than new applications. This marks the first time such a detailed breakdown has been made available to the public.

Statistics Show Shift from Legacy Benefits

As of December 2025, Britain recorded 8.34 million Universal Credit claimants, representing an increase of nearly one million from the previous year's figure of 7.36 million. The newly released data indicates that over three-quarters of this growth—specifically 775,790 claimants—stemmed from individuals moving onto Universal Credit from so-called "legacy" benefits like income support and jobseeker's allowance.

The Government's managed migration initiative, which involves transitioning claimants from older benefits to Universal Credit, began on a limited scale in May 2022 before being expanded in April 2023. During the initial 11-month period from May 2022 to April 2023, the total number of Universal Credit claimants rose by 360,000, from 5.54 million to 5.90 million.

Accelerated Transition Since 2023

Since April 2023, however, the claimant count has surged by 2.45 million, with approximately 70% of these individuals being transferred from older benefits. Out of the 8.34 million people receiving Universal Credit in Britain as of December 2025, 1.70 million were moved onto the system as part of the managed migration process.

The remaining 6.64 million claimants either registered as new applicants or voluntarily switched from legacy benefits since Universal Credit became fully accessible in 2018. Universal Credit is designed to provide financial assistance for living costs to those on low incomes, whether employed, unemployed, or unable to work.

Final Stages of Roll-Out

The Government has announced that the nationwide roll-out of Universal Credit is expected to be completed this year, with any remaining legacy benefit claimants anticipated to transition by March. This process involves phasing out six older benefits as part of the managed migration strategy.

These statistics emerge shortly after billionaire entrepreneur Sir Jim Ratcliffe, co-owner of Manchester United, commented in an interview: "You can't have an economy with nine million people on benefits." The latest data, which includes separate figures for Northern Ireland, suggests that at least 8.6 million people across the UK were likely claiming Universal Credit towards the end of 2025.