State Pensioners who receive a letter from the Department for Work and Pensions (DWP) telling them to move to Universal Credit are being urged to pay close attention to the deadline – or risk losing their financial support.
The DWP has updated its guidance for people who have reached State Pension age and received a Migration Notice letter, setting out what happens to their existing benefits, how much they could receive and what they need to do to keep their payments.
The move is part of the Government's plan to replace older benefits with Universal Credit. Tax credits, Income-based Jobseeker's Allowance and Income Support have already been replaced, while Housing Benefit is also being phased out in most circumstances.
Crucially, if you have received a Migration Notice, you must make a Universal Credit claim by the deadline stated in your letter if you want to continue receiving financial support.
The guidance applies to people in England, Scotland and Wales. There is separate guidance for Northern Ireland.
Pensioners could lose Housing Benefit if they do not claim Universal Credit
Housing Benefit is ending for most people who receive a Migration Notice, even if they decide not to move to Universal Credit.
There are exceptions for people living in supported or temporary accommodation. Their Housing Benefit can continue to be paid by their local council.
If your Housing Benefit stops, you may be able to reclaim it within three months if you did not claim Universal Credit, were not entitled to Universal Credit despite applying before your deadline, or have since stopped receiving Universal Credit.
Any reclaimed Housing Benefit can only be backdated by up to three months, so it is important to speak to your local council if you think you may qualify.
People living in supported or temporary accommodation should also check their circumstances with their council.
The good news for pensioners when moving to Universal Credit
The DWP says most people moving to Universal Credit will receive the same amount as they got from their previous benefits, or more. This is supported by a system known as 'transitional protection'.
- If the amount you were entitled to through tax credits was higher than your Universal Credit award, you may receive an automatic top-up – provided you received a Migration Notice and claimed Universal Credit by the deadline in your letter.
- There are also special eligibility rules for some people moving across from tax credits.
- The DWP also confirms that the benefit cap does not apply if you are State Pension age, still working or have received a Migration Notice.
Should pensioners claim Pension Credit instead?
People who have received a Migration Notice can choose to apply for Pension Credit instead of Universal Credit.
However, the DWP warns there are important consequences to consider before making that decision.
If your Pension Credit claim is accepted, you cannot then apply for Universal Credit and you will not receive Pension Credit transitional protection. You may also receive less financial support.
The DWP advises people to check what they could receive before deciding. Its Pension Credit calculator can help estimate how much they might get.
We're closing a loophole in Universal Credit Serious offenders detained for hospital treatment will no longer receive benefits while their living costs are being met by the NHS Watch Work and Pensions Secretary Pat McFadden discuss the changes on @GMB https://t.co/ibm9VjDQ1w
— Department for Work and Pensions (@DWPgovuk) October 20, 2026
How much Universal Credit could you get?
Universal Credit is made up of a standard allowance, with extra amounts added depending on your circumstances.
These could include additional support if you:
- Have children.
- Need help paying your rent.
- Have a disability or health condition that prevents you from working.
If you receive a disability benefit because of a health condition or disability, you may qualify for an extra amount without needing to provide a fit note or undergo a Work Capability Assessment.
If you do not receive a disability benefit, you may need to provide a fit note or have a Work Capability Assessment to qualify for extra support.
Your payment is worked out every month, rather than annually as tax credits were.
This means changes to your circumstances can affect the amount you receive for the whole monthly assessment period – not just from the day you report the change.
Your earnings will also be taken into account, including money from full-time or part-time work, self-employment and pensions.
If you live with a partner, their income and savings will also affect how much you can receive.
State Pension payments could reduce your Universal Credit
If you receive your State Pension while claiming Universal Credit, the pension is treated as income and deducted from your Universal Credit award.
There are special rules if you have delayed taking your State Pension.
The DWP also says people cannot build up extra State Pension or a State Pension lump sum (for those who reached State Pension age before April 6, 2016) while receiving Universal Credit.
When will Universal Credit be paid?
Universal Credit is usually paid once a month directly into a bank, building society or credit union account.
Your first payment normally takes around five weeks after you submit your claim.
If you are struggling to cover your living costs while waiting, you can apply for an advance through your online Universal Credit account.
Pensioners moving to Universal Credit must report changes
People claiming Universal Credit will need to manage their claim online, update their account, report changes in their circumstances and usually manage their own rent and other housing costs.
Changes that must be reported include:
- Changes to bank details.
- New jobs or changes to earnings.
- Changes to pension income, rent or savings.
- Changes to your health.
- Changes to your household, including children or a partner.
If you are self-employed, you will also need to report your earnings every month.
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How to get help with a Universal Credit Migration Notice
Anyone who needs help with their Migration Notice can contact the Universal Credit Migration Notice Helpline.
The helpline is open Monday to Friday, from 10am to 3pm. Phone: 0800 169 0328
People receiving Universal Credit may also qualify for other financial support, including help with NHS prescriptions, dental treatment and eye tests, depending on their circumstances.
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