DWP to scrap these six benefits for millions by the end of 2024

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-Credit: (Image: WalesOnline/Rob Browne)

Some Department for Work and Pensions (DWP) benefits will be scrapped for millions of people this year. The department is moving forward with proposals to move individuals on older benefits to universal credit.

Known as managed migration, the plans have been slowly introduced in parts of Wales and the UK but were stopped due to the Covid-19 pandemic.

They resumed in 2023 and the vast majority of claimants of certain support will be moved onto UC by the end of 2024, with the remainder to follow. Here's all you need to know about the shift and how it might impact you. To get the latest money stories straight to your inbox twice a week sign up to our newsletter here.

Who will be moved to universal credit and when will this happen?

Those receiving the following benefits will be transitioned to universal credit as part of managed migration:

  • Child and working tax credit

  • Income-based jobseeker's allowance

  • Income support

  • Income-related employment

  • Support allowance

  • Housing benefit

New claims for these benefits can no longer be made, with most people required to apply for UC instead. Households in certain areas of the UK have already been transitioned to the new benefits system, with targeted areas in the UK in September and October 2023 including both south west and south east Wales.

The Department for Work and Pensions (DWP) has revealed that households are being sent letters instructing them to file a universal credit claim within three months. To receive your money, you will need to verify your identity and accept these changes at your local Jobcentre.

If a UC claim isn't lodged during this period, your existing benefit payments will cease.

Once a UC claim is submitted, all previous benefits will be stopped and there will be a five-week wait before the first payment is made. Some old benefits will "run on" for a few weeks to aid the transition between the benefit changeover, but tax credits payments will stop immediately upon claiming UC.

By the end of the 2024/25 financial year, the majority of people will have moved to UC, with the exception of those only claiming Employment and Support Allowance (ESA) or ESA in conjunction with another legacy benefit (excluding tax credits). These individuals will be selected for the managed migration exercise in 2028.

While many will be financially better off on UC, others may find themselves with less money than they previously had. The DWP intends to provide top-up payments to eligible claimants who see a decrease in their payments due to the switch.

As per DWP guidance: "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."