Six DWP benefits are set to be axed for the majority of people in the UK by end of 2024. The Department for Work and Pensions (DWP) is pushing ahead with its plans to move people on older benefits over to universal credit.
The plan, known as managed migration, involves people on legacy benefits being moved over to UC in stages. The new benefit system has been rolled gradually in some areas of Wales and the UK but was paused due to the coronavirus pandemic.
It restarted earlier this year and the vast majority of claimants - millions of people - will be moved over by the end of 2024 with the rest to follow after. Here is everything you need to know about the move and how it will affect you. To get the latest money stories straight to your inbox twice a week sign up to our newsletter here.
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Who will be moved over to universal credit and when will this happen?
People receiving the following benefits will be moved over to universal credit as part of managed migration:
- Child and working tax credit
- Income-based jobseeker's allowance
- Income support
- Income-related employment
- Support allowance
- Housing benefit
No new claims can be made for these benefits with most people having to apply for UC instead. Households in some areas of the UK have already been moved onto the new benefits system with targeted areas in the UK in September and October this year including both south west and south east Wales.
The DWP has said households are being sent letters telling them they have three months to put in a universal credit claim. You will need to visit your nearest Jobcentre to verify your identity and accept the changes in order to get your money. If you don't make a UC claim in this time your legacy benefit payments will stop.
Once you makes a UC claim your old benefits will be stopped and you will have to wait five weeks for your first payment to arrive. Some legacy benefits will "run on" for a few weeks to help bridge the gap between the changes but tax credits payments will stop as soon as a person claims UC.
The majority of people will be moved to UC by the end of the 2024/25 financial year except those claiming ESA only or ESA and another legacy benefit (but not tax credits). These people will be selected for the managed migration exercise during 2028.
While some might be better off others might end up with less money than they had before. The DWP has said it will be offering top up payments for eligible claimants whose payments are reduced as a result of the change.
The DWP guidance says: “On universal credit, most people will be entitled to the same amount they received from their previous benefits or more. If the amount you are entitled to on your existing benefits is more than you will get on universal credit, a top-up is available. This is called transitional protection.
“You can only get this top-up if you have received a migration notice letter from DWP and claim by the deadline date on your letter. If your circumstances change before you make your claim, this may affect the amount you get.
“You should claim as soon as possible to make sure the amount you are currently entitled to can be protected. Any transitional protection you receive as part of your universal credit claim may stop if you have a change in circumstances once you’ve made your claim.”
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