DWP Issues Major Update Following Steep Increase in Universal Credit Claims
The Department for Work and Pensions has released a detailed breakdown of Universal Credit claimant data, highlighting a significant surge in claims over the past year. This update comes as the government continues its nationwide rollout of the benefit system, with a focus on transitioning individuals from older, legacy benefits.
Key Statistics on Claimant Increases
According to the latest DWP figures, the total number of Universal Credit claimants in Britain reached 8.34 million in December 2025, marking an increase of almost one million from the 7.36 million recorded twelve months earlier. Notably, more than three-quarters of this rise—specifically 775,790 claimants—were not new applications but individuals moved onto Universal Credit from other benefits such as income support and jobseeker’s allowance.
When including separate data from Northern Ireland, estimates suggest that at least 8.6 million people across the UK were likely claiming Universal Credit towards the end of 2025, underscoring the scale of the benefit's adoption.
Managed Migration and Legacy Benefit Transfers
The government's managed migration process, which involves transferring claimants from older benefit types to Universal Credit, began on a small scale in May 2022 and was accelerated in April 2023. Since April 2023, the total number of Universal Credit claimants has jumped by 2.45 million, with 70% of this increase attributed to transfers from legacy benefits.
Of the 8.34 million people receiving Universal Credit in Britain as of December 2025, 1.70 million had been moved onto the system as part of this managed transfer initiative. The remaining 6.64 million claimants either signed up as new applicants or switched voluntarily from older benefits since Universal Credit became fully available in 2018.
Government Response and Future Plans
A DWP spokesperson commented on the data, stating, “People moving from old legacy benefits onto universal credit—almost four in every five—account for the vast majority of the increase over the past year. This is a transition we inherited from the previous government, alongside a system that writes people off.”
The spokesperson added that the department is addressing these challenges by legislating to remove work disincentives and redeploying 1,000 work coaches to support sick and disabled individuals who were previously neglected. The government aims to complete the Universal Credit rollout across Britain this year, with all remaining legacy benefit claimants expected to be transferred by March.
Broader Context and Economic Implications
Universal Credit is designed as a payment to assist with living costs for low-income workers, unemployed individuals, and those unable to work. The rise in claims has sparked discussions about the economic impact, as highlighted by recent remarks from Manchester United co-owner Sir Jim Ratcliffe, who noted in an interview, “You can’t have an economy with nine million people on benefits.”
This data update from the DWP provides crucial insights into the ongoing transformation of the UK's welfare system, emphasizing the shift from fragmented legacy benefits to a unified Universal Credit framework.
