The Department for Work and Pensions (DWP) is currently undergoing a significant overhaul, phasing out certain older benefits to introduce universal credit. However, it’s essential to clarify that not all welfare payments will be impacted by these changes. The DWP is currently in the process of transitioning over two million individuals to universal credit through a system known as “managed migration.” This transition is taking place gradually, with claimants being informed in phases, ensuring that not everyone switches at the same time.
Claimants will receive a “migration notice” by post when it’s their turn to begin their universal credit claim, allowing a three-month window for the transition. Once this window expires, existing benefits will cease. The DWP aims to reach all affected parties by the end of December 2025. Welfare payments such as Working Tax Credit, Child Tax Credit, and certain jobseeker’s allowances and housing benefits are set to be replaced by universal credit.
However, if you are claiming other benefits like Pension Credit, Child Benefit, Personal Independence Payment, Carer’s Allowance, or Attendance Allowance, these payments will continue as usual, without the need to switch to universal credit. If you receive new-style benefits such as new-style Employment and Support Allowance or new-style Jobseeker’s Allowance, you will not be required to transition to universal credit.
For those claiming tax credits who are of state pension age or part of a mixed-age couple, the DWP may ask you to apply for universal credit or pension credit. Some individuals, such as those in temporary or supported accommodation, may still receive housing benefit. Benefit calculators can help determine whether transitioning to universal credit would be beneficial, but seeking expert advice is crucial to ensure accurate information.
To apply for Universal Credit, claimants can typically do so via the gov.UK website. Once a universal credit claim is made, Working Tax Credit or Child Tax Credit will cease immediately, while other benefits will continue for an additional two weeks. Claimants transitioning through managed migration who find themselves financially worse off will receive monthly transition payments until the difference between universal credit and legacy benefits is negligible.
In conclusion, the DWP’s move towards universal credit is a significant shift impacting millions of claimants, with careful consideration needed for each individual’s circumstances to navigate these changes effectively.