Thousands of people are losing out on money every month because they have not claimed Universal Credit when their legacy benefits were stopped.

The Department of Work and Pensions (DWP) latest statistics showed that almost one in seven claimants had their legacy benefits claims closed and did not complete a claim for Universal Credit, potentially losing hundreds of pounds a month.

The Government plans to move all Tax Credit claimants on to Universal Credit by the end of March 2025, under a process known as managed migration. However the switch is not automatic and households need to act when they receive their migration letter before their benefits stop. The DWP is performing the switch region by region, with County Durham being one of the first to switch.

• Read more: DWP draws up three key changes to force a million sick and disabled people back into work
• Get all the latest money news and budgeting tips from Chronicle Live with our free newsletter

Households in the county receiving Child or Working Tax Credits received letters to start their migration on to Universal Credit back in July and had until the end of October to act.

The DWP's statistics show that between July 2022 and August 2023, 117,690 people were sent migration notices, and only 61,130 of these have made a claim to Universal Credit. Some have been awarded transitional protection, a top-up payment available for some people moving from legacy benefits if they would be entitled to less under Universal Credit.

A total of 40,540 people who were sent migration notices are still going through the process of moving to Universal Credit, but 16,020 who were sent migration notices have had their legacy benefit claims closed.

A leading benefits information website has hit out at the statistics, accusing the DWP of "making no effort to find out why claimants would willingly lose hundreds of pounds a month in income by failing to complete the migration process."

Benefits and Work, which claims to help people get the benefits they are entitled to, says that although it acknowledges in some cases this may have been a conscious choice, evidence is mounting that not everyone can cope with the process of claiming Universal Credit.

The website says that Disability News Service has obtained a copy of a report about the difficulty of claiming Universal Credit, which it claims the DWP has "fought to keep secret for four years". The report concludes that the design of Universal Credit “is inadequate for vulnerable groups” who therefore need extra help from staff through adjustments and specialist support.

A spokesperson from Benefits and Work said: "With hundreds of thousands of disabled claimants required to undertake managed migration in the future, the DWP’s lack of interest in the barriers claimants face is deeply worrying."

A DWP spokesperson said: “We alert people three months before they need to move to Universal Credit and follow up with reminder letters and texts. Evidence shows most Tax Credit claimants have been able to claim Universal Credit without the need for additional support. Extensions can be arranged for those who need more time to make a claim and support is available in local jobcentres and via a dedicated DWP helpline. Benefits are only ever stopped as a last resort after multiple unsuccessful attempts to engage with claimants.”