The DWP has issued guidance to people claiming PIP, DLA and Carer's Allowance over how they'll be affected by a huge benefit shake-up

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

Six benefits are being scrapped while some others will continue to be paid as normal during the huge changeover

by · Birmingham Live

Thousands of people are being sent letters by the Department for Work and Pensions about a major benefits shake-up. Many are on several different kinds of benefits and are wondering how their other payments and overall income will be affected.

Several people have been asking on BirminghamLive's Cost of Living Facebook group which of their existing benefits will stop and which will continue. Some have said they feel confused and uncertain about the big changes as the 'managed migration' to Universal Credit extends its reach.

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

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Originally, around 800,000 people who receive income-related ESA, either on its own or with Housing Benefit, would not have had to make the switch until 2028-2029. But this has been brought forward and 'migration notice' letters started to be sent in September. It means the changeover is now affecting people on all six of the legacy benefits, with tax credits expected to be closed down in April 2025 and all other legacy claimants expected to be moved by December 2025.

It's important to note that other benefits you may be receiving are NOT affected by the changeover. The DWP says this includes Personal Independence Payment (PIP), Disability Living Allowance (DLA), Carer's Allowance and Child Benefit, which will all continue as normal during the changeover process and when you are on Universal Credit.

However, bear in mind that Carer's Allowance is regarded as an 'overlapping benefit' so the amount you receive will be deducted from your monthly Universal Credit payments. You can partially make up for this by claiming Universal Credit's own Carer Element of £198 a month.

In its guidance to those facing the benefit changeover, the DWP states: "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 adds that people who only receive New Style Jobseeker's Allowance or New Style Employment and Support Allowance will also not have to move to Universal Credit. However, if a recipient of one of these benefits chooses to claim Universal Credit as well, an equivalent amount will be deducted from their Universal Credit.

In addition, some people on Housing Benefit will not move to Universal Credit if they (and any partner) are of State Pension age (66 or over) and either live in temporary accommodation provided by a council because they were homeless, or in supported accommodation including refuges, hostels, extra care housing and some sheltered housing. Instead, they will continue to receive help with rent through Housing Benefit.

Some people on tax credit will be asked to go onto 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 choose 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.

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