DWP scrapping these six benefits for millions by the end of 2024

This year several Department for Work and Pensions (DWP) benefits will be phased out for millions of individuals. The department is advancing 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.

If an individual fails to lodge a universal credit (UC) claim during the transition period, their existing benefits will end. Once a UC claim is submitted, all previous benefits are terminated and there's an expected five-week wait for the first UC payment.

To help with the shift from old benefits to UC, some former payments might temporarily continue, however, tax credits will cease immediately upon claiming UC. .

By the close of the 2024/25 financial year, the majority should have transitioned to UC with the exception of those solely on Employment and Support Allowance (ESA) or ESA alongside another legacy benefit, barring tax credits. These cases are scheduled for managed migration in 2028.

While some claimants will experience a financial boost with UC, others may face a reduction in funds. To address this, the Department for Work and Pensions (DWP) plans to give top-up payments to those eligible who observe a dip in their income due to the switch.

According to DWP instructions: "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."