Six DWP benefits are due to be phased out for the vast majority of people by the end of this year. The Department for Work and Pensions (DWP) is progressing plans to move age pensioners onto Universal Credit.
The scheme, known as managed migration, would see people on old benefits gradually moved onto Universal Credit. The new benefit scheme is being phased in in Wales and some parts of the UK, but has been paused due to the coronavirus pandemic, Wales Online reports.
Reopening will begin early this year, with most people expected to be relocated by the end of 2024, with the remainder to follow. Here's everything you need to know about this move and how it affects you.
Who will be moved over to universal credit and when will this happen?
People receiving the following benefits will be moved over to universal credit as part of managed migration:
- Child and working tax credit
- Income-based jobseeker's allowance
- Income support
- Income-related employment
- Support allowance
- Housing benefit
You cannot make a new claim for these benefits, so most people must apply for health insurance instead. Households in some parts of England were already switched to the new benefit scheme in September and October this year, with areas of England in south-west and south-east Wales already being switched to.
DWP said each household has received a letter saying he has three months to submit his Universal Credit application. To receive your money, you will need to go to your local job center to verify your identity and accept the change.
If you do not claim UC within this period, your previous benefit payments will stop. Once you file a UC claim, your previous benefits will be stopped and you will have to wait 5 weeks for your first payment to arrive.
Some old benefits will be “continued” for a few weeks to bridge the gap between changes, but once an individual claims UC, tax credit payments will stop. The vast majority of people will move to UC by the end of her 2024/25 financial year, excluding those claiming ESA only, or ESA and separate traditional benefits (but not tax credits).
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These individuals will be selected for managed transition in 2028. Some people may be better off, but others may end up with less money than before. DWP said the changes would provide additional payments to claimants whose payments were reduced.
The DWP guidance says: “On universal credit, most people will be entitled to the same amount they received from their previous benefits or more. If the amount you are entitled to on your existing benefits is more than you will get on universal credit, a top-up is available. This is called transitional protection.
“You can only get this top-up if you have received a migration notice letter from DWP and claim by the deadline date on your letter. If your circumstances change before you make your claim, this may affect the amount you get.
“You should claim as soon as possible to make sure the amount you are currently entitled to can be protected. Any transitional protection you receive as part of your universal credit claim may stop if you have a change in circumstances once you’ve made your claim.”