In the coming weeks, the Department for Work and Pensions (DWP) is set to phase out six benefits that currently support millions of individuals across the UK. The move is part of the DWP’s broader strategy to transition people from older benefit schemes to the Universal Credit system. This transition process, known as managed migration, was initially disrupted by the Covid-19 pandemic but resumed in 2023. By the end of 2024, the majority of certain benefit claimants are expected to be moved to Universal Credit, with the remaining individuals to follow suit.
Under the managed migration scheme, individuals currently receiving specific benefits will be required to transition to Universal Credit. New claims for the affected benefits will no longer be accepted, and individuals will need to apply for Universal Credit instead. Some households in targeted regions of the UK, including parts of south west and south east Wales, have already undergone the transition to Universal Credit in September and October 2023. Affected households will receive notification letters instructing them to make a Universal Credit claim within a three-month period.
During the transition process to Universal Credit, individuals risk losing their existing benefits if they fail to submit a timely UC claim. It is crucial for claimants to confirm their identity and accept the changes at their local Jobcentre to ensure a smooth transition. While some interim payments may be provided during the switch from old benefits to Universal Credit, tax credits will cease immediately upon initiating a UC claim. By the end of the 2024/25 financial year, the aim is for the majority of individuals to have transitioned to Universal Credit, except for those solely receiving Employment and Support Allowance (ESA) or ESA in combination with another legacy benefit, which are slated for transition in 2028.
The move to Universal Credit may result in varied financial outcomes for individuals, with some experiencing an increase in income while others may see a reduction in support. To assist those facing income shortfalls due to the transitioning process, the DWP has pledged to provide top-up payments to eligible individuals. This transitional protection ensures that most claimants will receive at least the same amount as their previous benefits, if not more. It is important for individuals to act promptly upon receiving migration notice letters from the DWP to secure transitional protection and address any changes in their circumstances that may impact the amount received.
It is essential for individuals affected by the upcoming changes to be proactive in understanding how the transition to Universal Credit will affect their financial situation. By familiarising themselves with the process and requirements for claiming Universal Credit, individuals can ensure a smoother transition and mitigate any potential disruptions to their benefit payments. The DWP is committed to supporting claimants throughout the migration process and has outlined measures to safeguard individuals against income reductions resulting from the shift to Universal Credit.
In conclusion, the upcoming transition of millions of individuals from older benefits to Universal Credit signifies a significant change in the UK’s welfare system. By providing necessary information and support, the DWP aims to streamline the migration process and minimise any adverse impacts on claimants. As the phased rollout of Universal Credit continues, it is crucial for affected individuals to stay informed, take proactive steps to claim Universal Credit, and seek assistance from the DWP where needed to navigate this period of transition effectively.