DWP Announces Six Significant Changes Impacting Millions in 2024
The Department for Work and Pensions (DWP) is in the process of making major changes that will affect millions of individuals. The DWP has been gradually transitioning people from older benefits, referred to as legacy benefits, to universal credit since 2013. This transition process, known as managed migration, was temporarily halted in 2020 due to the pandemic but was resumed in early 2023. Managed migration commenced in regions like south west and south east Wales in September and October. Individuals receiving six specific benefits are being smoothly moved to universal credit through managed migration. New claims for these benefits are generally no longer accepted, and individuals are asked to apply for universal credit instead.
Households in various parts of the UK, including south west and south east Wales, have begun the transition to universal credit. If you are part of the managed migration process, you can anticipate receiving a letter from the DWP, notifying you that you have three months to file a universal credit claim. To make a claim, a visit to your nearest Jobcentre is necessary to verify your identity and accept the changes. Failure to claim within the specified timeframe will result in the cessation of your legacy benefit payments. Upon applying for universal credit, there’s typically a five-week wait for the first payment, during which time legacy benefits will cease. While some legacy benefits may continue for a brief period to help bridge the payment gap, tax credit payments stop upon submission of a universal credit claim.
The government expects that the majority of individuals in the UK will be transitioned from legacy benefits to universal credit by the end of the 2024/25 financial year, with exceptions such as those solely receiving ESA or ESA and another legacy benefit (excluding tax credits). These individuals will undergo managed migration by 2028. If you are still on an older benefit and have not yet been moved over, it is highly likely that you will receive notification in 2024 about your inclusion in managed migration and the requirement to claim universal credit.
Will individuals be financially better off on universal credit? In most cases, the answer is yes, but the outcome is highly dependent on individual circumstances. Some may find themselves in a more stable financial situation, while some charities have raised concerns that others may experience reduced financial support post-transition to universal credit. The DWP has assured eligible claimants experiencing a decrease in funds during the transition to universal credit that top-up payments are available. Transitional protection, offering the same or higher amount than existing benefits, is available for most individuals on universal credit, with top-ups provided if entitled to more via legacy benefits.
Claimants must request this top-up upon receiving a migration notification letter from the DWP and must make the claim by the deadline specified. Any change in circumstances before claiming may impact the amount received. Prompt claiming is crucial to ensure current entitlement protection. Transitional protection received as part of a universal credit claim may cease if circumstances change post-claim submission. With the ongoing changes and managed migration to universal credit, individuals are encouraged to stay informed about their eligibility and claim process to secure their financial stability.
This planned transition is aimed at simplifying the benefits system and ensuring more efficient delivery of support to those in need. The DWP aims to assist individuals in securing financial stability through these changes, with provisions in place to safeguard claimants throughout the migration process. Stay informed and proactive regarding your benefit entitlements and the universal credit application process to navigate these changes smoothly and secure your financial well-being.
The DWP is continuously monitoring and adapting these transitions to ensure a smooth and effective shift for all individuals affected. By keeping abreast of the latest updates and guidelines, claimants can make informed decisions and access the necessary support through this transitional period.