Five DWP benefits to be scrapped as claimants get swapped to Universal Credit – find out if you are affected
FIVE different types of benefits are set to be axed as claimants are swapped onto Universal Credit.
A range of Department of Work and Pensions (DWP) benefits will be scrapped in 2024 as part of plans to simplify the welfare system.
The process was paused during the Covid-19 pandemic, but began again in May this year as the government tries to move more claimants onto the single payment scheme.
The five benefits that will be absorbed are: Child and Working Tax Credit, Income-based Jobseeker’s Allowance (JSA), Income Support, Housing Benefit and Employment and Support Allowance (ESA).
Most people can now no longer make a new claim for these benefits and must apply for Universal Credit instead.
If they do not make an application within their existing benefit timeframe, then the payments will end.
Once a claimant makes a Universal Credit claim, their old benefits will stop and they will have to wait five weeks for their first new payment.
Some previous benefits will ‘run on’ for a few weeks to bridge the gap, but Tax Credit payments will end as soon as people claim Universal Credit.
The Government has also decided to delay its plan to replace Housing Benefit for pensioners with a new housing element of Pension Credit until 2028.
Those receiving the old benefits are being told that they don’t need to wait until they are notified to make the switch.
Anyone who thinks they might be better off with Universal Credit is encouraged to change as soon as possible.
However, claimants are urged to check their entitlement using an independent benefits calculator.
Those who are unsure if they would be better off are advised to wait until they are moved automatically.
The DWP says that 1.4million people will get more money under the news system and 300,000 will see no change.
The department, admits, though that 900,000 people could end up worse off.
For those in this situation, the DWP will provide top-up payments to match the previous payments, which will continue unless the individual’s circumstances change.
From April 2023, Universal Credit recipients are to receive a 10.1% increase in payments, in line with the rate of inflation.
For single claimants over the age of 25, this means an increase in monthly payments from £334.91 to £368.74.
Joint claimants over 25 will see a rise from £525.72 to £578.82 per month.