Claimants throughout the UK are expected to be hit with a benefits freeze under plans to move 2.6 million households on to Universal Credit. Following an announcement on Monday (April 25) from Ministers saying that they will begin to move people from six old-style 'legacy' benefits to Universal Credit starting on May 9 and finishing in December 2024.
But according to the Department for Work and Pensions (DWP), up to 900,000 of the 2.6 million 'legacy' households are expected to be worse-off in the long-term following the switch. While households will receive transition payments to ensure their income does not drop overnight, their benefits will then effectively be frozen every April, reports Lancashire Live.
As Universal Credit rises with inflation, transition payments are expected to "erode" away with the increase - that is until the benefit catches up with what they are being paid.
