DWP to End Six Benefits by 2024
The Department for Work and Pensions (DWP) is set to discontinue six key benefits by the end of 2024, affecting millions of individuals. The shift is part of a move to transfer people currently on older benefits to universal credit, a process known as managed migration. While the transition had been temporarily paused due to the Covid-19 pandemic, it resumed in 2023 and is now on track to be completed by the end of 2024. Here’s what you need to know about these changes and how they may impact you.
The transition to universal credit will affect individuals currently receiving certain benefits, with new claims for these benefits no longer being accepted. Most individuals will be required to apply for universal credit instead. The migration has already started in specific areas of the UK, including parts of south west and south east Wales in September and October 2023. Those affected will receive letters from the DWP instructing them to make a universal credit claim within three months. To ensure a smooth transition and continue receiving funds, claimants must confirm their identity and accept the changes at their local Jobcentre.
Failure to make a universal credit claim during the transition period will result in the termination of existing benefits. Upon submitting a universal credit claim, all previous benefits will cease, and there may be a five-week wait for the first universal credit payment. While some former payments may continue temporarily, tax credits will end immediately upon claiming universal credit. By the end of the 2024/25 financial year, the majority of claimants should have transitioned to universal credit, except for those solely on Employment and Support Allowance (ESA) or ESA alongside another legacy benefit, excluding tax credits, which are slated for managed migration in 2028.
Amidst these changes, some claimants may experience a financial boost with universal credit, while others may face reductions in funds. To address potential income decreases, the DWP plans to provide top-up payments to eligible individuals who see a dip in their income following the transition. According to DWP guidelines, most people on universal credit should receive the same amount as or more than what they received from their previous benefits. Transitional protection in the form of top-up payments is available for those whose entitlement on previous benefits exceeds what they would receive on universal credit.
To secure the transitional protection top-up, claimants must have received a migration notice letter from the DWP and make a claim by the deadline specified in the letter. Any changes in circumstances before making the claim may impact the final amount received. It is vital to claim promptly to ensure current entitlement is safeguarded. However, transitional protection received as part of a universal credit claim may cease if circumstances change after the claim is made. These measures aim to support individuals through the transition to universal credit and minimise financial disruptions during the process.
In summary, the DWP’s move to scrap six benefits by the end of 2024 is part of a larger migration towards universal credit. While the transition may bring financial gains for some claimants, others may face reductions in income. The department is offering support in the form of top-up payments to eligible individuals to mitigate any negative impact on their finances. Claimants are urged to act promptly, submit their universal credit claims on time, and stay informed about the changes to ensure a smooth transition. With these measures in place, the DWP aims to streamline the benefits system and provide better support to those in need.