DWP will scrap six benefits for millions of people in weeks

This year, several Department for Work and Pensions (DWP) benefits will be phased out for millions of individuals. The department is moving forward with plans to transition those on older benefits to universal credit.

This process, known as managed migration, has been gradually implemented in parts of Wales and the UK but was halted due to the Covid-19 pandemic. It resumed in 2023, and by the end of 2024, the vast majority of certain support claimants will have been moved onto UC, with the rest to follow.

Here's everything you need to know about this shift and how it may affect you. To receive our latest money stories directly to your inbox twice a week, sign up for our newsletter here.

Who will be transitioned to universal credit and when will this occur?

Those receiving the following benefits will be moved to universal credit as part of managed migration: New claims for these benefits can no longer be made, with most people required to apply for UC instead. Households in specific areas of the UK have already been transitioned to the new benefits system, including targeted areas in south west and south east Wales in September and October 2023.

The DWP has disclosed that households are being sent letters instructing them to submit a universal credit claim within three months. To receive your funds, you will need to confirm your identity and accept these changes at your local Jobcentre.

When the transition to universal credit (UC) is in progress, individuals risk losing their existing benefits if they fail to submit a UC claim. Upon applying for UC, all former benefits are terminated with a typically five-week waiting period for the first UC disbursement.

During the switch from old benefits to UC, certain past payments may be extended temporarily; however, tax credits stop immediately when a UC claim is made. By the end of the 2024/25 financial year, the aim is for most people to have moved to UC, excluding those who only receive Employment and Support Allowance (ESA) or ESA combined with another legacy benefit, except for tax credits, which are due for managed migration in 2028.

While UC may lead to increased income for some, others might see a decrease in financial support. To assist those impacted by reduced income due to the new system, the Department for Work and Pensions (DWP) has committed to provide top-up payments for eligible individuals experiencing income shortfalls.

The DWP clarifies: "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."