DWP Strips Over 150,000 Children of Benefits – Impact of Universal Credit Migration

The Department for Work and Pensions (DWP) has intensified its “managed migration” process, forcing millions to transition to Universal Credit. Since its roll-out began, the policy has disproportionately impacted women and households with children, stripping over 318,000 people of their benefits. This troubling trend raises critical questions about the DWP’s approach and its impact on vulnerable populations.

Migration

The managed migration process started as a pilot in 2019, eventually expanding in July 2022. Under this policy, the DWP sends migration notices to individuals claiming legacy benefits like Tax Credits, giving them three months to transition to Universal Credit. Failure to meet this deadline results in claimants losing their benefits entirely.

By September 2024, the DWP had issued migration notices to over 1.36 million individuals, affecting nearly one million households. The result? A staggering 318,834 people – 29% of those notified – lost their benefits entirely.

Disparities

What’s particularly alarming is the disproportionate impact on women and families with children. Data reveals:

• 58% of those losing benefits are women, equating to over 185,000 individuals.
• 69% were claiming Child Tax Credits or Working Tax Credits, core supports for low-income families.
• Over 150,000 households with children have been affected, leaving many struggling without critical financial support.

These figures highlight how managed migration exacerbates financial instability for already vulnerable demographics.

Missed Warnings

The adverse outcomes were predicted long before the policy’s roll-out. In 2023, the Work and Pensions Select Committee warned that the policy could lead to widespread destitution. Activists and analysts also raised concerns about the technical challenges and potential barriers for claimants during the migration process.

Despite these warnings, the DWP underestimated the number of people who would lose benefits. It initially projected that 26% of Tax Credit claimants and 4% of other legacy benefit claimants would be affected. By September 2024, these figures had risen to 30% and 3.39%, respectively.

Labour’s Role

The Labour government, despite taking office amidst the migration roll-out, has continued the process without pause. Critics argue this decision undermines Labour’s commitments to tackling poverty, especially as the government simultaneously promotes initiatives like the Child Poverty Taskforce.

Systemic Issues

This policy is just one example of systemic problems within the DWP. Critics label it as “misogynistic,” citing its disproportionate impact on women and families. Additionally, the government’s refusal to lift the two-child benefit cap exacerbates financial challenges for large families, compounding the policy’s harmful effects.

The managed migration process has left hundreds of thousands without financial safety nets, plunging many into economic uncertainty. These outcomes starkly contrast with the government’s pledges to address poverty and protect vulnerable groups.

Addressing these systemic flaws requires more than rhetoric; it demands immediate policy overhauls, including pausing the migration process and reevaluating its fairness and efficiency. Until then, the DWP risks further eroding trust and deepening inequality.

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