Five DWP benefits to be scrapped by the end of 2024 in Universal Credit rollout

Five benefits are due to end in 2024 as claimants get swapped over to Universal Credit.

This process was paused during the worst of the Covid-19 pandemic, but began again in May of this year.

The Department for Work and Pensions (DWP) wants to complete all the switches by the end of 2024.

The five benefits set to change to Universal Credit include Child and Working Tax Credit, Income-based Jobseeker’s Allowance (JSA), Income Support, and Housing Benefit.

People getting Income-related Employment and Support Allowance (ESA) will also swap to Universal Credit, but not until 2028.

The Government has also decided to postpone its plans to replace Housing Benefit for pensioners with a new housing element of Pension Credit until 2028.

Most people can no longer make a new claim for these benefits, so must apply for Universal Credit.

The change is being made by the Department for Work and Pensions (

Image:

In Pictures via Getty Images)

If someone does not make a claim in this timeframe, the current legacy benefits they receive will automatically stop.

Once someone makes a Universal Credit claim, their old benefits will be stopped and they will have to wait five weeks for their first Universal Credit payment to arrive.

Some legacy benefits will 'run on' for a few weeks to help bridge the gap between the changes, but tax Credits payments will stop as soon as a person claims Universal Credit.

People claiming certain legacy benefits do not need to wait until they are notified to be moved onto Universal Credit.

Anyone who thinks they will be better off can make the move right away.

However, claimants are being urged to check their entitlement for Universal Credit using an independent benefits calculator.

This is because some claimants may not be better off on Universal Credit.

The DWP claims 1.4million people will get more money being on Universal Credit and 300,000 will see no change. However, 900,000 could be worse off.

If this is the case, the DWP will provide top-up payments to ensure people get the same amount as on a legacy system.

These will then continue unless their circumstances alter.

Those who are unsure if they would be better off are being advised to wait to be moved as the transitional protection top-up payments only apply to claimants moved by DWP.

The Government voted to end the legacy benefit system in 2012 stating that the new Universal Credit system would be better “suited to the 21st century”.

The change is being made as the six benefits all possess “complex and inefficient systems” that are based on “ageing and inflexible IT systems”.

From April next year, Universal Credit claimants are to receive a 10.1% increase to the payments they are receiving now.

The DWP confirmed the new weekly payment rates on November 23 and published a full online guide to the increases for State Pensions, benefits and the increased benefit cap on GOV.UK.

For Universal Credit, the standard allowance for those single and under 25 years will be paid at £292.11 a month, up from £365.31.

Those who are single and over 25 years, they will receive a payment of £368.74 from next April, up from £334.91 now.

Joint claimants who are both under 25 will get a monthly payment of £458.51, up from the current £416.45.

For joint claimants where one or both are over 25 years, they will receive £578.82 from next April, up from the £525.72 now.


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