The Department of Work and Pensions (DWP) is set to scrap six benefits by the end of 2024, with more people being moved over to Universal Credit.
The new benefit system was paused due to the coronavirus pandemic, but the transfer has since stated up again. In May this year, the move restated with plans to complete the entire transfer by the end of 2024. And that means that there are a number of benefits scrapped in the coming months and year, report The Express.
The payments that are due to change include Child and Working Tax Credit, Income-based Jobseeker's Allowance (JSA), Income Support, and Housing Benefit.
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Income-related Employment and Support Allowance (ESA) was included in this move until the Autumn Statement when Chancellor Jeremy Hunt announced that the shift for this benefit would be extended until 2028.
How will you be informed about the move?
If and when you are being moved over, you will receive a "migration notice" in the post. This will then start the three-month deadline to claim Universal Credit. If you doo not claim in this timeframe then your benefit payments will automatically stop.
What happens to the old benefit payments?
Once you make a claim for Universal claimant following the notice, your old benefit payments will be stopped. You will have to wait five weeks for the first Universal 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 Universal Credit.
Do you need to wait for the notice?
If you are currently claiming legacy benefits, you do not need to wait until you receive a notice of the move to Universal Credit. Instead, you can start the new claim straight away.
However, claimants are being urged to check their entitlement for Universal Credit using an independent benefits calculator. This is because some claimants may not be better off on Universal Credit.
Will I better off?
The DWP claims that 1.4million people will be better off on Universal Credit, with 300,000 set to see no change.
However, 900,000 could be worse off. If this is the case, the DWP will provide top-up payments to ensure people receive the same entitlement as on a legacy system. The top-up payments will continue unless circumstances change.
If you are unsure whether or not you will be better off, you are advised to wait to be moved as the transition protection top-up payments only apply to claimants moved by DWP.
Why is the move happening?
The Government voted to end the legacy benefit system in 2012 stating that the new Universal Credit system would be better “suited to the 21st century”. The change is being made as the six benefits all possess “complex and inefficient systems” that are based on “ageing and inflexible IT systems
From April next year, Universal Credit claimants are to receive a 10.1 percent increase to the payments they are receiving now. The DWP confirmed the new weekly payment rates on Wednesday, November 23 and published a full online guide to the increases for State Pensions, benefits and the increased benefit cap on GOV.UK.
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