Six DWP benefit and Universal Credit changes set to come into force

The Department for Work and Pensions (DWP) has already implemented a series of benefit changes this year, with more expected in the coming months.

Claimants should be aware of these changes as they could affect their payments and potentially their eligibility. This year's changes include payment increases for Universal Credit recipients, the abolition of Attendance Allowance, and proposed plans for Personal Independence Payment (PIP), the Mirror reports.

Here are six major benefit changes set to occur this year.

Read more: More than 350 Yodel jobs at risk as bosses announce Oldham distribution centre will close

Benefit payments are set to increase

In last year's Autumn Statement, it was confirmed that benefits would rise by 6.7% in April. This includes benefits such as Universal Credit, Personal Independence Payment (PIP), Carer's Allowance, and Pension Credit.

Most claimants saw their payments increase in April, but those claiming Universal Credit have yet to see this change. Many will see the increase in May, while some may have to wait another month.

This is due to how Universal Credit is calculated each month. Universal Credit is determined based on your circumstances each month, known as your "assessment periods".

If your circumstances change, the amount of Universal Credit you receive that month could also change. Typically, you receive your Universal Credit payment seven days after each monthly assessment period.

Those whose Universal Credit assessment periods began before the increase on April 8 will see their benefits increase in May. However, those whose assessment period started after this date won't experience this benefit until June.

To illustrate, if your evaluation period initiated on March 26 and ran until April 25, with a new assessment cycle beginning on April 26, your Universal Credit would be received one week later on May 2. As your assessment timeline spans from March to April, when the new rates were not yet active, you would need to wait for another assessment period (April 26-May 25) to receive the increased rate.

If your evaluation commenced after the April 8 rise, your Universal Credit payment due in May will be augmented.

Changes in Administrative Earning Thresholds

Changes have been implemented this month, reportedly affecting approximately 180,000 individuals. Those deemed "fit to work" under Universal Credit rules are primarily affected.

This classification places you in the all work-related activity group, which requires you to pursue all possible opportunities for employment or wage increases.

There are additionally two groups you can be assigned to, the "Light Touch" and "Intensive Work Search" groups. The group allocation is determined by the Government's Administrative Earnings Threshold (AET).

The amount of work you need to do to keep your benefits is determined by your monthly earnings. Those earning above a certain threshold fall into the 'light touch' group, while those earning less are categorised as the 'intensive work' group and may need to increase their working hours.

The Average Earnings Threshold (AET) has been raised; if your earnings fall below this, you may need to seek additional work. The AET now stands at 18 hours per week or equivalent to £892 a month, up from 15 hours previously.

For couples, the new AET has increased to 29 hours a week, or the equivalent of earning £1,437 a month. If you don't meet these requirements, your benefits could be reduced or stopped entirely, and you may face sanctions.

Managed Migration

The Department for Work and Pensions (DWP) is persisting with its Managed Migration plan, with an increasing number of legacy benefit claimants expected to receive notices to switch to Universal Credit in the upcoming months.

Earlier this year, the DWP announced a change to its original plans, moving the completion date forward by three years from 2028 to 2025. This means the transition from legacy benefits to Universal Credit is now expected to be completed by the end of 2025.

The DWP are presently focusing on those who claim Tax Credits. From June onwards, migration notices will begin to be sent to those households claiming Housing Benefit.

As of July, those claiming Employment Support Allowance (ESA), alongside Child Tax Credits, will receive their notices; Jobseekers Allowance (JSA) claimants will follow suit in September. On receiving a migration notice, claimants will have a three-month window to submit their application for Universal Credit - failing which, benefits will be terminated.

A consultation period concerning PIP concluded

Last month, Prime Minister Rishi Sunak unveiled grand plans to reform the disability benefit of PIP during his "sick note generation" speech. In quick succession, the DWP launched a public consultation outlining proposed changes.

One significant and divisive plan detailed in the paper is the swap of recurring payments for either one-off grants or vouchers.

Additionally, a different proposal was suggested in the form of a "catalogue scheme". This would amount to an "approved list" of support supplies such as vocational aids and equipment that claimants could opt to acquire at either "reduced or no cost".

A third suggestion included modifying the eligibility criteria from how one's condition impacts their day-to-day life to a basis relying solely on the condition itself.

The consultation remains open for an overall period of 12 weeks, inviting businesses, groups, organisations, and individuals alike to share feedback regarding the effects of these proposals. The consultation concludes on July 23.

Alterations in payment dates

As is customary each year, there will be some alterations to the payment dates for benefits in the upcoming months due to bank holidays. Since benefits are not disbursed on bank holidays, if your payment date coincides with a bank holiday, you will receive your payment earlier.

This adjustment will be made automatically by the DWP, so you don't need to take any action to receive your money.

The next bank holiday is scheduled for Monday, May 27. If your payment is due on this date, you will receive it on the preceding Friday - which means this week, on Friday, May 24.

Following this, the subsequent bank holiday is on Monday, August 26. When this date arrives, your benefit payment will be made on Friday, August 23 instead.

The final bank holidays of the year occur at Christmas, on December 25 and 26. The exact dates have yet to be confirmed, but payments will likely be made on the last working day before these holidays - which would be Christmas Eve, December 24.

Changes to Attendance Allowance

In Scotland, the Attendance Allowance, a disability benefit for individuals over the state pension age, will be replaced by a new benefit known as the Pension Age Disability Payment (PADP). This new benefit will commence in certain areas from October 21, including Argyll and Bute, Highland, Aberdeen City, Orkney, and Shetland.

The benefit will be extended to 13 additional local authority areas from 24 March next year, before being rolled out across Scotland by 22 April. Those currently receiving Attendance Allowance in Scotland will automatically transition to the new Pension Age Disability Payment (PADP) when it becomes available.

Social Security Scotland, the Scottish equivalent of the DWP, has provided details on how the new benefit will be implemented on their official website.