The Department of Work and Pensions (DWP) plans to move those on six legacy benefits to Universal Credit by 2024.
The reason for the change and the six benefits being replaced is because all have complex and inefficient systems based on ageing, inflexible IT. Universal Credit uses a modern, digital system which stood up to the test of COVID-19 where it quickly ensured three million new claimants were protected from the financial impact of the pandemic.
Claimants are gradually being notified of these changes and will have their benefit entitlement of Universal Credit assessed against current claims. Although notifications will be gradually sent out across the country, people who are currently claiming legacy benefits do not have to wait to be moved to Universal Credit, reported Somerset Live.
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Anyone who thinks they will be better off can move straight away. Claimants are encouraged to check their entitlement for Universal Credit using an independent benefits calculator. People who are unsure whether they would be better off should wait to be moved as the transitional protection top up payments only apply to claimants moved by DWP.
Any legacy benefit recipients who apply for Universal Credit will see their original claim come to an end. It will not be possible to go back to any of the legacy benefits at a later date even when appealing a DWP decision.
The former Secretary of State for Work and Pensions Thérèse Coffey shared why the Government is moving people away from legacy benefits. She 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.”
Who will be affected by the DWP's changes to Universal Credit
- Working Tax Credit
- Child Tax Credit
- Income-based Jobseeker’s Allowance
- Income Support
- Income-related Employment and Support Allowance
- Housing Benefit.
How much Universal Credit do people receive?
The amount someone receives from Universal Credit is entirely dependent on their standard allowance, any extra amounts they apply for and money which is taken off the payment. Those who are single and under 25 can claim £265.31 a month while those over this age bracket can get £334.91.
If a claimant lives with their partner and they are both under 25, they will receive £416.45. If one of the people in the couple is older than 25, they will get £525.72. This payment is supposed to be for both couples, it is not possible for both to put forward individual claims.
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