Universal Credit is set to replace six 'legacy' benefits that are provided by the Department for Work and Pensions (DWP).
The DWP has confirmed that six benefits are set to be axed by 2024, reports Lancaster Live. These benefits include Income-based Jobseeker's Allowance, Employment and Support Allowance, Working Tax Credit, Child Tax Credit, Income Support and Housing Benefit.
This change will result in millions of benefit claimants being moved over to the umbrella of Universal Credit. The changeover first began in May 2022, following a postponement due to the coronavirus pandemic.
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The former Work and Pensions secretary, Therese Coffey, announced the beginning of the process to move claimants would restart again soon. Anybody affected by these changes would be notified when they should begin to claim Universal Credit.
Therese said: "Over five million people are already supported by Universal Credit. It is a dynamic system which adjusts as people earn more or indeed less, and simplifies our safety net for those who cannot work.
"Parliament voted to end the complex web of six legacy benefits in 2012, and as this work approaches its conclusion we are fully transitioning to a modern benefit, suited to the 21st century."
Universal Credit is a benefit delivered by the DWP that is available for those who adhere to any of the following:
- Those on low income
- People who need help with living costs
- Are working (including self-employed or part time)
- Are out of work
- Have a health condition that affects their ability to work
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Most people can no longer make a new claim for these benefits, so must apply for Universal Credit. The six 'legacy' benefits are being replaced due to "complex and inefficient systems based on ageing, inflexible IT”, according to the DWP.
If a person thinks they will be better off on Universal Credit, then they can take action to move straight away. People who are unsure what they can claim have been urged to use benefit calculators to find out.
However, it is not always suitable for people to switch to Universal Credit straight away. Those who are unsure about their benefits have been told to wait to be moved.
The Government said: "The transitional protection top-up payments only apply to claimants moved by DWP, and people cannot reclaim their old benefits after switching to Universal Credit.”
Everyone who moves over from legacy benefits will have their entitlement to Universal Credit assessed against their current claims. Top ups will be available to people whose entitlement would have been reduced because of the change.
People moving to Universal Credit are to receive a two-week run-on of their Income Support, income-Based Jobseeker’s Allowance, or income-Related Employment and Support Allowance. Those on Housing Benefit should receive a transitional two-week payment to Universal Credit Housing Payment.
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