DWP benefit change update for everyone on PIP, DLA and Carer's Allowance

The government is moving people off six different benefits and onto Universal Credit in a process known as 'managed migration'. But will other payments be affected?

The Department for Work and Pensions (DWP) is sending out letters to thousands of people regarding a significant overhaul of benefits. Many recipients, who are on various types of benefits, are left wondering how these changes will impact their other payments and overall income.

Numerous queries have been raised on BirminghamLive's Cost of Living Facebook group about which existing benefits will cease and which will continue. Some individuals have expressed confusion and uncertainty over the extensive changes as the 'managed migration' to Universal Credit expands.

Anyone receiving any of the following six legacy benefits will need to transition to Universal Credit: Income Support, Working Tax Credit, Child Tax Credit, income-based Jobseeker's Allowance (JSA), income-related Employment and Support Allowance, and Housing Benefit. All of these are being phased out.

Initially, approximately 800,000 people who receive income-related ESA, either alone or with Housing Benefit, were not expected to make the switch until 2028-2029. However, this timeline has been advanced, and 'migration notice' letters began to be sent out in September.

This means that the changeover now impacts individuals on all six of the legacy benefits, with tax credits anticipated to be discontinued in April 2025 and all other legacy claimants expected to be transferred by December 2025, reports Birmingham Live.

It's worth noting that the arrival of Universal Credit won't affect other benefits you may be getting. According to the Department for Work and Pensions (DWP), benefits such as Personal Independence Payment (PIP), Disability Living Allowance (DLA), Carer's Allowance, and Child Benefit will continue uninterrupted during the transition to Universal Credit.

Yet, it's important to remember that Carer's Allowance is considered an 'overlapping benefit', meaning its value will be subtracted from your Universal Credit payout. But, you can recoup some of this through Universal Credit's Carer Element which stands at £198 a month.

For those navigating the shift in benefits, the DWP advises: "If you get other benefits such as Personal Independence Payment (PIP), Disability Living Allowance (DLA), Carer's Allowance (CA), Child Benefit, you will not be asked to move to Universal Credit unless you also receive one of the working-age benefits or tax credits that is ending."

It further notes that individuals who solely receive New Style Jobseeker's Allowance or New Style Employment and Support Allowance aren't obliged to switch to Universal Credit. However, should someone opt to claim Universal Credit on top of these benefits, the amount they receive through them will be deducted from their Universal Credit payment.

Furthermore, individuals receiving Housing Benefit who are of State Pension age (66 or over) and either reside in temporary accommodation provided by a council due to homelessness, or in supported accommodation such as refuges, hostels, extra care housing and some sheltered housing, will not transition to Universal Credit. Instead, they will continue to receive assistance with rent through Housing Benefit.

Some people on tax credits will be asked to switch to Pension Credit rather than Universal Credit if they are of State Pension age or are part of a mixed-age couple where one partner is a pensioner and the other isn't. If you are of State Pension age and are asked to apply for Universal Credit, you can opt to claim Pension Credit instead, if you meet the eligibility criteria, but you won't be entitled to transitional protection to keep your income at the same level.