Hundreds of thousands of individuals who currently receive six different benefits may soon see an increase in their payments. The government is in the process of phasing out what are known as legacy benefits, such as tax credit, child tax credit, Income Support, income-based Jobseeker’s Allowance, income-related Employment and Support Allowance, and Housing Benefit, and replacing them with Universal Credit.
Claimants will be required to apply for Universal Credit once they receive a letter called a “migration notice”. Upon receiving this letter, individuals will have three months to make the switch, or else they risk having their payments stopped. It is important to note that people should not take any action until they receive the official letter, and some individuals may have already transitioned to Universal Credit.
According to the Department for Work and Pensions (DWP), more than half (55%) of those impacted by this change are expected to see an increase in their payments as a result of transitioning to Universal Credit. The DWP has reassured the “majority” of individuals that they should not experience any financial disadvantages due to the switch.
As the deadline for the complete shutdown of tax credits in April 2025 approaches, the DWP has issued a reminder to all individuals affected by this transition. The DWP stated, “Anyone affected will be sent a ‘migration notice’ by DWP to apply for Universal Credit as the department continues to transition over a million claimants on legacy benefits to Universal Credit.”
The goal of phasing out legacy benefits is to consolidate government financial support into one unified system. Importantly, the DWP emphasizes that the majority of individuals should not be financially worse off under Universal Credit.
It is crucial for individuals receiving these benefits to pay attention to any communication from the DWP, particularly the “migration notice”, and take the necessary steps within the given timeframe to avoid any disruptions in their payments. By staying informed and following the instructions provided, claimants can ensure a smooth transition to Universal Credit and potentially benefit from increased payments.
