Five benefits as we know them will cease to end in 2024, as the Department for Work and Pensions works to swap recipients over to Universal Credit.
The Government recently announced that although the scheme was set to take place before this, work was paused during the coronavirus pandemic - delaying plans significantly. However, the process resumed earlier in 2022.
A total of five benefits are set to be unified with Universal Credit (UC) by the end of 2024, in the form of Child and Working Tax Credit, Jobseeker’s Allowance (JSA), Income Support and Housing Benefit. And while Employment and Support Allowance (ESA) will also swap to UC - this will not happen until 2028.
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All of the benefits which are being merged are said to have 'complex and inefficient systems based on aging and inflexible IT' according to the DWP, while Universal Credit allows experts to navigate a 'modern, digital' system which has stood up to the test of a surge of claimants in the millions.
Secretary of State for Work and Pensions at the time, Thérèse Coffey, in April 2022, said: "Over five million people are already supported by Universal Credit. It is a dynamic system which adjusts as people earn more or indeed less, and simplifies our safety net for those who cannot work.
"Parliament voted to end the complex web of six legacy benefits in 2012, and as this work approaches its conclusion we are fully transitioning to a modern benefit, suited to the 21st century."
The Mirror reports that at the time of writing, most people are not able to create a new claim for the six aforementioned benefits - and must therefore begin a claim for Universal Credit instead. If someone fails to make a claim across the timeframe, their current legacy benefits will automatically also stop.
Once a Universal Credit claim is made, a person's old benefits will cease, and they will have to wait a five-week period for their first UC payment to land. Although some legacy benefits will 'run on' for a few weeks to bridge the gap between changes, Tax Credit payments stop as soon as someone claims Universal Credit.
Those claiming certain legacy benefits do not need to wait until they are notified to be moved onto Universal Credit, and can do so at any time. In fact, anyone who believes that they may be better off on UC can make the move instantly.
With that being said though, claimants are advised to check their entitlement beforehand by using an independent benefits calculation tool - as they may not actually be better off with the benefit.
The DWP claims that some 1.4 million will get more money over on Universal Credit, while 300,000 will see no change whatsoever. However, 900,000 may be in fact worse off. In such cases, the DWP will compensate with top-up payments to ensure that previous claimants receive the same amount that they do on their legacy system.
These will continue until their circumstances alter. If you are unsure as to whether or not you will be better or worse off, you should wait to be moved - as the transitional top-up payments will only come to those moved by the DWP.
As of April next year, those on Universal Credit will receive a 10.1% increase to their current payments. The DWP confirmed the changes to payment rates last Wednesday - publishing a complete guide online to the increases for State Pensions and benefits, as well as the increased benefit cap.
Read next:
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The six changes PIP claimants don't need to report - and the ones you must disclose
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DWP benefits you cannot claim when you reach State Pension age - full list
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DWP can give up to £812 for essentials like rent and clothes if you are on specific benefits
